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Private’s Equity’s Influence on Consolidation Predicted to Continue Amidst COVID-19 Disruption, Structural Change by Vincent Romans, as told to Stacey Phillips
uring the SO Symposium in oember, V incent Romans, managing partner of he omans roup, presented a macro-le el iew of the e ol ing .S. collision repair industry. ollowing the irtual show, omans shared further insight from he omans roup industry research with Autob od y N ews contributor S tacey P hillip s, following trends on consolidation, pri ate e uity E and the auto physical damage landscape. n the following article, omans
discusses the impact of O -1 on the collision repair industry and examines how E continues to in uence structural change with consolidation. 2020 will fore er be seen and remembered as a generational foundation year of signiﬁcant disruption and structural change for the world with far-reaching economic, social and political implications. At the omans roup, we ha e discussed and proﬁled the ongoing disruption ta ing place during the last ﬁ e decades as part of our study See Influence on Consolidation, Page 4
Collision Repair Industry Associations Make 2021 New Year’s Resolutions by Chasidy Rae Sisk
On ew ear s E e, people typically en oy re ecting on the ending year, but 2020 has been a little chaotic, to say the least.
hile no one seems particularly sad to say goodbye to 2020, there s still excitement and hope for the incoming year, expressed by ma ing
ew ear s resolutions. ollision repair industry associations are optimistic about the upcoming year and graciously agreed to share their 2021 ew ear s resolutions with Autobody ews.
ecause 2020 has contained so many unprecedented e ents and situations, many associations resolutions See New Year’s Resolutions, Page 10
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Florida Among States with Most COVID-19 Workers’ Comp Medical Claims by John Haughey, The Center Square
lorida was in the top ﬁ e nationally in the rate of O -1 -related wor ers compensation insurance medical claims ﬁled in the ﬁrst six months of 2020, a report released by the ational ouncil on ompensation nsurance said. lorida recorded more than 00 O -1 -related wor ers compensation medical claims for e ery 100,000 acti e claims between anuary and une, the reported, a 0 increase from 201 a erages. Only Alas a, olorado, on-
necticut, lorida and ew ersey topped 00 O -1 -related wor ers compensation medical claims for e ery 100,000 acti e claims, according to the report, which doesn t explain why these states ha e more such claims than others or what the exact per-100,000-claims ratio is, reporting only aggregates. A wor ers compensation claim is considered a “medical claim if an in ured or ill wor er recei ed at least one “medical encounter while the claim is acti e. he compiled its medical claims data from its See Medical Claims, Page 18
Distracted Driving Skyrocketing During the Pandemic by Kea Wilson, StreetsBlog USA
A new study of COVID-era car crashes ﬁnds that a shoc ing 2 of all dri ers were using their cell phones within 0 seconds of impact—and transaportation safety leaders are doing almost nothing to stop it, despite a preponderance of pro en strategies that can compel us to put down our de ices when we re behind the wheel. n an analysis of ,000 collisions that too place on .S. roads in 2020, mobility analysis ﬁrm endri e found our country s record-setting crash rates in the loc down months usually in ol ed dangerous distracted dri ing beha iors li e texting behind the wheel, which is illegal in 1 states. Alarmingly, 1 . of dri ers the company studied were using their cell phones in the ﬁ e seconds immediately prior to impact—and the problem got increasingly worse as the year wore on, and more and more cars returned to the road and rates of other dangerous beha iors,
li e speeding, dropped. endri e s technology wor s in the bac ground of a wide range of cell phone apps, from e-taxi software to na igation ser ices countless Americans use e ery day, so the dangerous phenomenon cuts across both commercial and ci ilian dri ing. hose early days of O -1 , of course, were an exceptional time for .S. transportation. ut experts reiterated that distracted dri ing long predates the pandemic, and the recent uphea al in tra el patterns only underscores a long-standing problem. “ istracted dri ing is a needless crisis, and now as we na igate increased health ris s in our day-today, we need to prioritize safety on the road, said Jonathan Matus, endri e EO and co-founder. “ e hope that sharing this data demonstrates the urgency here, and sheds light on a ey to eeping our communities safer. Of course, we now exactly how to stop dri ers from scrollSee Distracted Driving, Page 14
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2021 ASA X50 Automotive Conference & Expo ..32
Big Guns Line Up in Florida AOB Fight .................9
3M Introduces Lightweight Performance Spray
Carvana Opens Atlanta Vending Machine, Now Offers Delivery in 263 Cities ....................6
Gun Using Revolutionary Technology .............34 AirPro Diagnostics Partners with adasThink ........6
Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.
Audi Wholesale Parts Dealers .......................... 33
Hyundai Wholesale Parts Dealers .................... 37
AutoNation Ford-Lincoln ................................. 15
Jim Cogdill Chrysler-Dodge-Jeep-Ram ............. 8
BMW Wholesale Parts Dealers ........................ 32
John Heister Automotive ................................. 24
Certified Automotive Parts Association ............ 12
Kia Motors Wholesale Parts Dealers ................ 35
Charlotte’s Premier Wholesale Parts Source .... 27
Killer Tools & Equipment Corp. .......................... 9
City Kia of Greater Orlando .............................. 28
Mazda Wholesale Parts Dealers ...................... 32
Classifieds ...................................................... 38
Mercedes-Benz Wholesale Parts Dealers ........ 34
Dale Earnhardt Jr. Buick GMC Cadillac ............ 13
MINI of Charleston .......................................... 28
Ford, I-CAR Announce EV Training .....................39
Dale Earnhardt Jr. Chevrolet ............................ 13
MINI Wholesale Parts Dealers.......................... 32
Hyundai, Kia Fires Cost Automakers
Equalizer Industries, Inc. ................................... 6
MOPAR Wholesale Parts Dealers ..................... 25
Florida Filtration & Spray Booth Services......... 10
NOROO Paint & Coatings ................................... 2
Ford Wholesale Parts Dealers .......................... 37
Rick Hendrick Chevrolet Naples ...................... 18
Will be ‘Alive and Well’ Seven Years
GM Wholesale Parts Dealers ........................... 31
Riverside Ford-Lincoln .................................... 29
from Now .....................................................32
Gus Machado Ford .......................................... 22
SATA Dan-Am Company .................................... 5
Kia’s Kurcz Named to Leadership List ...............18
Hendrick Automotive Group............................. 17
Shop-Pro Equipment ....................................... 40
Motus: Vehicle Depreciation to Slow
Hendrick BMW/MINI .......................................... 7
Southside Kia.................................................. 14
Hendrick Honda Pompano Beach .................... 16
Spanesi Americas ........................................... 11
Private’s Equity’s Influence on Consolidation
Hendrick Kia Cary ........................................... 23
Subaru Wholesale Parts Dealers...................... 30
Predicted to Continue Amidst COVID-19
Hendrick Kia Concord ..................................... 23
Tameron Hyundai ............................................ 26
10 Cities with the Most Expensive Driver
Disruption, Structural Change .........................1
Hendrick Volvo Cars of Charleston................... 28
Volkswagen Wholesale Parts Dealers .............. 36
COVID-19 Vaccine Could Be Ready For Florida’s Priority Recipients in December ......................8 Employer Coalition’s Legislative Priorities in Florida Go Beyond Pandemic Recovery .........12 Florida PSC Approves FPL’s Electric Vehicle Charging Tariffs ..............................................6 November Brings Avalanche of Court Filings in Insurance Case ...........................................9
ASE Expands Spanish- Language Test Options ..34 Biden Says He Won’t Immediately Remove U.S. Tariffs on China ......................................38 Caliber Announces Internal Promotions .............33 Collision Repair Industry Associations Make 2021 New Year’s Resolutions ..........................1 Distracted Driving Skyrocketing During the Pandemic..................................................1 Experts: Classic Car Owners Should Beware
COLUMNISTS Anderson - It’s Time to Address the Other ‘Pandemic’ in Our Industry ............................22 Attanasio - Metal and Creativity Collide at CRASH Jewelry .........................................30 Ledoux - The ‘80s—Foreign Cars and Other Changes ..............................................28 Phillips - Cracking the Code to Recruiting and Hiring Collision Repair Technicians .........24 Yoswick - Driving Has Largely Rebounded, but Traffic Congestion, Resulting Claims Have Not.......................................................36
Second Lockdown ........................................38 Ford Has a Controversial Message for Every Automaker...........................................33
Another $137 Million.....................................39 Investment Banker Tells MSOs the Industry
as Much as 3% in 2021 ................................37
INDEX OF ADVERTISERS
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Norman Morano, Griffin Reinhard (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray
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Honda-Acura Wholesale Parts Dealers .19, 20-21
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Continued from Cover
Influence on Consolidation of the longitudinal e olution within the collision repair industry, and its auto physical damage ecosystem s multi-segment structural transformation. e entered 2020 with one of the best business and economic enironments e er by all comparati e standards. e were then unexpectedly hit by a con uence of external e ents impacting near and longer term isibility o ershadowed by continued uncertainty. hese include O 1 s uncertain impact a slow, hobbling, une en healing economy social unrest in the .S. presidential election results and tensions between the .S., hina and ussia. he recent disruption caused by the pandemic will accelerate change in ways that ma e it diﬃcult to predict what the eﬀects will be throughout the broader auto physical damage ecosystem.
ention, the collision repair industry s designation as an essential business, a ailable loans and early reductions in labor force actions initiated by repairers all helped contribute to many repairer s positi ely na igating the pandemic. Since ebruary, we ha e seen a number of mar et dynamic changes that seem to be at the top of the more in uential and impactful near-term con uence of pre ailing industry conditions during and post-pandemic rastic decrease in miles dri en, accidents and claims processed compared to the same period in 201 A reduction in the collision repair addressable mar et, otal A ailable ar et A , in 2020, yet to be determined ncreased ehicle repair complexity due to growing penetration of embedded A AS technology and calibration re uirements ontinued acceptance and adoption of OE certiﬁcation programs echnician shortage mitigated in the short-term due to furloughed and
here are many industry constructs laying the foundation for change, opportunity and uncertainty as we transition to 2021. owe er, we expect to emerge from 2020 with stronger nascent and legacy-leading businesses that were well-capitalized with strong balance sheets preO , as well as emerging disrupters who were at the right place and time with new norm solutions that became opportunities for success and competiti e ad antages. e ha e seen many repair organizations able to not only maintain their operational and ﬁnancial well-being, but also to be proﬁtable during the pandemic. A combination of the ederal eser e s periodic economic inter-
terminated technicians, but sourcing, recruitment and retention continues. echnicians and collision repair owners are now e en more selecti e regarding hiring and retaining the best E olution of business segmentation strategies with the largest consolidators mar eting to insurers their uni ue “one national shop model platform. his is further segmented with collision repair locations proiding speciﬁc capabilities including glass installation, express-, same- or next-day ser ice, non-dri e total loss processing and disposition, OE certiﬁcation, ad anced material and or mechanical repair, and diagnostic ser ices including pre- and post-repair scanning and calibration
Artiﬁcial intelligence, machine learning and computer ision geared to the de elopment and adoption of collision repair estimating e entually impacting shorter claims processing and estimate accuracy Accelerated digital transformation including acceptance of irtual claims photo processing and ﬁnancial payments
sential business. ost repairers remain open e en though business was slashed by 0 to 0 in the early O -1 days, when repairers too actions to cut costs, accepted money from the go ernment, furloughed personnel and, in some cases, shuttered their doors for some of the early days of the health crisis.
ri ate e uity s continued interest and acti ity in acti ely see ing out in estments throughout the auto physical damage ecosystem and collision repair consolidation Impact of Private Equity on Industry Consolidation t s no secret the collision repair industry has experienced and will continue to re ect signiﬁcant consolidation, both in terms of the number of repair locations ac uired and the transfer of ownership. he number of repair organizations has decreased considerably since 2000, while consolidator and larger multi-shop operators SOs ha e created multi-location, multi-regional and national SOs that now represent 2 of the collision repair industry s A . ith e er-increasing E funds and record le els of “dry powder unallocated capital on hand it is anticipated that transactions within the collision repair industry and broader auto physical damage landscape will continue at a constant pace. E organizations continue to be attracted to collision repair for se eral reasons the healthy and growing industry A , strong positi e cash ow, the iew that collision repair is somewhat recession resistant as re ected in the 200 -200 recession downturn economic cycle and the go ernment s current designation that collision repair is an es-
O erall, .S. E deal-ma ing acti ity registered another healthy showing in 201 , though fell shy of the record-setting pace of 201 . ( See Fig . 1 ) espite the strong rising .S. in estment theme, seen in the chart abo e, the amount of unspent E cash continues at its all-time high. n estors such as pension funds, so ereign wealth funds and insurance companies continue to direct money into pri ate mar ets in the hopes of achie ing higher returns in
Fig. 3. Source: Pequin
industries li e collision repair than oﬀered by traditional stoc s and bonds in an era of continued low interest rates. E in estments and relati ely inexpensi e debt ha e pro ided the See Influence on Consolidation, Page 15
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Florida PSC Approves FPL’s Electric Vehicle Charging Tariffs Ac nowledging electric ehicle E owners fear of being stranded with a drained battery far from a charging station, the lorida ublic Ser ice ommission S on ec. 1 pro ided a umpstart to lorida s sustainable transportation future. he S appro ed lorida ower ight ompany s three optional E charging pilot tariﬀs, facilitating more charging opportunities. “ ontinued growth of the electric- ehicle industry will re uire widespread charging infrastructure and appropriate electricity plans to enable deployment along state highways, said S hairman Gary Clark. “ e determined that offering a utility-based rate as an option to E customers during the industry s de elopmental stage promotes the public interest and is expected to pro ide alue to customers. he ﬁrst tariﬀ, tility-Owned ublic harging for Electric ehicles E , establishes a charging rate for utility-owned direct current fast charging stations. he other two tariﬀs, Electric ehicle harging nfrastructure iders
for eneral Ser ice emand and eneral Ser ice arge emand S 1E and S -1E , establish a rate for competiti e mar et charging stations operating in s ser ice area. his rate will implement a threshold
charging stations that ha e low use. s ﬁ e-year pilot program is eﬀecti e an. 1, 2021, and the utility is re uired to ﬁle annual reports with the S by an. 0, 2022 for the reporting period of anuary through
“Continued growth of the electric-vehicle industry will require widespread charging infrastructure and appropriate electricity plans to enable deployment along state highways,” — Gary Clark on the demand charge associated with the general ser ice rates. he E tariﬀ sets a price of 0. 0 per ilowatt hour h for electricity sold to motorists at charging stations operated by . hese stations allow motorists to charge electric ehicles more uic ly than they can charge ehicles at home. s olumetric rate, 0. 0 per h, is based on a comparison of a cost-per-mile basis to recent gasoline prices. he S -1E and S -1E tariﬀs help mitigate the impact of demand charges for
ecember 2021. hese reports will pro ide critical information allowing the S to monitor the reasonableness of the E rate and the S -1E and S -1E tariﬀs. efore the end of the ﬁ e-year period, the S ordered to ﬁle no later than Sept. 1, 202 , a petition to extend, modify or terminate the tariﬀs. ser es nearly million customer accounts in lorida. or additional information, isit www. oridapsc.com. Source: Florid a P SC
AirPro Diagnostics Partners with adasThink Air ro iagnostics announced ec. a strategic partnership to deli er adas hin technology on re uired A AS calibrations to its customers at no additional cost. Air ro iagnostics is proud to be the ﬁrst to mar et to oﬀer the adas hin technology integrated into its cloud-based diagnostic platform, to ele ate the ease of access for shops to identify ehicles re uiring A AS calibrations for repairers across the .S. and anada. adas hin pro ides technology that allows an estimate to be analyzed against correlating OE procedures, and assess as to which A AS features a ehicle has, which ser ices and calibrations are re uired to be performed, and access to the information to perform a complete and safe repair. Air ro iagnostics proides remote scanning, diagnostics, programming and calibration ser ices to shops across orth America. Source: AirP ro D iag nostics
Carvana Opens Atlanta Vending Machine, Now Offers Delivery in 263 Cities by Auto Remarketing Staff
ar ana sold its ﬁrst car in Atlanta in 201 . Since then, the company has opened car ending machines across the .S. On o . 1 , ar ana said it was opening its 2 th car ending machine, in Atlanta, the city where it all started.
Carvana’s 27th car vending machine has opened in Atlanta. Credit: Photo courtesy of Carvana
“ t s ﬁtting that our agship location is in the community that has supported us from the beginning, ar ana founder and EO E rnie Garcia said in a news release. ar ana also said the Atlanta car ending machine is its tallest in the .S., standing 12 stories high with a - ehicle capacity. us-
tomers can shop more than 20,000 ehicles, ﬁnance, purchase, trade in and schedule as-soon-as-nextday pic up at the new Atlanta car ending machine. Area customers can also choose touchless home deli ery. ar ana operates additional car ending machines in entuc y, ennessee, exas, lorida, aryland, Arizona, Ohio, ennsyl ania, ndiana, llinois, issouri, orth arolina, O lahoma and alifornia. n other ar ana news, the company said o . 2 it was oﬀering its as-soon-as-next-day touchless home deli ery to arrisonburg, A-area residents. ar ana now oﬀers as-soon-as-next-day ehicle deli ery to customers in 2 .S. cities.“ arrisonburg residents will now be able to choose from thousands of ehicles online and ha e it deli ered to their front door as soon as the next day, arcia said. “An easy, con enient and transparent car buying experience is an oﬀering we re conﬁdent the community will embrace. We thank Auto R emarketing for reprint permission.
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COVID-19 Vaccine Could Be Ready For Florida’s Priority Recipients in December by John Haughey, The Center Square
lorida epartment of ealth plans to administer the O -1 accine when it becomes a ailable in three phases, perhaps starting in ecember, with health care professionals and the most ulnerable ﬁrst in line. he O s draft distribution plan, assembled by a -member accination planning wor group spearheaded by lorida Surgeon eneral r. S cott Riv kees and eputy Secretary for ealth r. S hamarial Roberson, incorporates lessons learned during the 200 1 1 pandemic and in contending with last year s surge in epatitis A. he draft plan was submitted to the federal enters for isease ontrol and re ention on Oct. 1 , when there were no accines on the cusp of appro al. harmaceutical manufacturer ﬁzer announced o . it was see ing expedited appro al from the .S. ood and rug Administration A for a accine after preliminary results showed it was more than 0 eﬀecti e. f ﬁzer recei es A authorizaO
tion for its accine by month s end, it says 1 million doses of the accine could be a ailable in ecember. “ rioritization of accine recipients is not yet determined by the , lorida s draft plan read, adding lorida identiﬁed ﬁrst recipients by focusing “on critical populations identiﬁed in draft guidance documents as well as locations that can accommodate the time and dosing reuirements. he draft plan anticipated logistical hurdles in distributing the accine and outlined messaging strategies to contend with misinformation and s epticism. nder the draft plan, the ﬁrst accines would be issued to “health care personnel li ely to be exposed to or treat people with O -1 those at higher ris for se ere illness from O -1 , including those with underlying medical conditions and other essential wor ers, the O said, estimating ,000 licensed health care professionals could be among ﬁrst recipients. According to the draft plan, the O would coordinate with doctors, the Agency for ealth are Administration A A , the State
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Emergency esponse eam, the lorida epartment of Elder Aﬀairs and other agencies to identify “at-ris populations who would be a priority for accination during phase one. he O s proposed phase two allocation would issue accines to 22 ,000 staﬀ and 1 ,000 residents of nursing homes and other long-term care facilities across the state. his second phase also would see to identify those with ulnerable medical conditions and disabilities— potentially as many as 2. million loridians. he ﬁnal distribution would be for the general public. he O plans to create mass- accination clinics run by county health departments “to supplement accination eﬀorts and to increase capacity in community-based settings. ommunity health clinics would be used, as would hospitals. he O is as ing hospitals in the state not enrolled in its lorida S O S accine networ to do so to now to streamline eﬃciency. urrently, 2 state hospitals are enrolled. Some county health departments also ha e identiﬁed sites such as sta-
diums and fairgrounds used a mass testing sites to ser e as inoculation clinics. Orange ounty is considering ma ing the Orange ounty on ention enter a ailable for accinations. Afterwards, the accine would be oﬀered through pharmacies and health care sites. he federal go ernment has contracted with algreens and S to pro ide accine clinics at nursing homes and assisted li ing facilities. n lorida, a retail pharmacist could accinate people in the store. he lowest priority in O s draft plan is young children, who will get the accine as part of routine accination schedules. ospitals are eyed as accination sites because most ha e the cold storage capacity the accine will re uire. lorida ospital Association spo esperson onica orbett, a member of the wor ing group, told lorida ews Ser ice safe storage of the accine is a priority. “ ﬁzer has de eloped pac aging to eep the accine at temperature for up to 10 days with pelletized dry ice, orbett said. We thank The Center Square for reprint permission.
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November Brings Avalanche of Court Filings in Insurance Case he case of Allstate s. Auto lass America A A and its owner, harles saly, produced more than 0 separate legal ﬁlings in the month of o ember—an a erage of more than one per business day. he ﬁlings appear to coalesce around three main issues 1. he admissibility of “expert witnesses on both sides. Socalled aubert challenges ha e been raised against such witnesses and the court must rule on the admissibility of such testimony as each side ma es its case in ﬁlings. Each side is attempting to exclude at least some opinion of the other sides expert. Allstate has re uested that oral arguments be made on this point. 2. A number of depositions were also ﬁled with the ourt in oember, including additional information from saly and former employees and subcontractors. . otions for and against sanc-
tions generally centering on whether or not the court s order for certain ﬁnancial information had been followed. On o . 0, Laurence M K op elman, A, one of the ﬁrms representing A A, also ﬁled a motion to end its representation saying that its “ad ice is no longer necessary. he motion was granted on ec. 1. Allstate ﬁled the lawsuit in ecember 201 , alleging A A had engaged in a plan to unlawfully obtain payment for excessi e and or unreasonable charges by submitting in ated in oices which the insurer paid at a reduced rate, also nown as short-rating. Allstate alleged A A would then sue them when it paid less than the in oice amount. A A has since ﬁled a counterclaim against Allstate. We thank g lassB Y TEs.com for reprint permission.
Big Guns Line Up in Florida AOB Fight by Debra Levy, glassBYTEs.com
n another sign that the State of lorida is gearing up for ma or battles concerning the assignment of beneﬁts AO in auto glass cases, a former state insurance regulator has oined a ﬁrm in ol ed in lobbying the legislature regarding beneﬁt assignments.
garding “fraud in beneﬁt assignments regarding windshield glass replacements in cars beginning in arch. “ t is basically dri ing up our car insurance rates because there s so much fraud in the system, she told the legal publication, “and that s one reason why we ha e high auto insurance rates in the state.
“It is basically driving up our car insurance rates because there’s so much fraud in the system,”— Beth Vecchioli Beth V ecchioli, who has spent more than a decade as a former senior regulator for the lorida Oﬃce of nsurance egulation, has returned to the law ﬁrm of olland night in allahasee as a senior policy ad isor. She most recently was with the ﬁrm of arlton ields A. ecchioli told aw 0 she will be representing auto insurers before the lorida egislature re-
lorida has an assignment of beneﬁt law in place, but it does not currently co er automoti e claims such as auto glass. An attempt to expand the law in August 201 failed, though such an eﬀort is expected to be reintroduced at the start of the next legislati e session. We thank g lassB Y TEs.com for reprint permission.
autobodynews.com / JANUARY 2021 AUTOBODY NEWS 9
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Continued from Cover
New Year’s Resolutions for the new year are centered around anticipating and addressing members imminent needs. Bob Amendola, president of the A A , is “loo ing forward to ma ing more headway on the challenges we face within our industry. “2020 brought a tremendous amount of change to the mar etplace, S S Executi e irector Aaron S chulenburg obser ed, detailing that changes impacted how members interact with customers, endors and carriers, as well as how they connect within the industry. “ oo ing to 2021, the association is tremendously focused on what those interactions loo li e, Schulenburg said. “Since arch, the S S has formed coalitions with a ariety of trade groups to impro e support for the small businesses we represent, including two that are see ing forgi eness reform and supporting eﬀorts to streamline forgi eness. “ he new year, and new administration, will bring new opportunities for the association to ser e as a oice of the industry, see ing solutions that impro e business conditions for those in our trade. “Each and e ery year, the alliance resol es to ad ance its mission to impro e the state s automoti e ser ice industry and the success of its members, said AAS Executi e irector Judell Anderson. “ n 2021, anticipate that wor will re ol e around helping members rebound from what has been a challenging 2020. e stand ready to be of ser ice, based on the needs of our members. For Jerry McNee, president of AAS , the most important thing he hopes to see in 2021 is unity. “ here is strength in numbers, and to create change, it s crucial that we ha e the ability to share information, such as success or losses where we can all learn something to help impro e our industry, c ee said. “ rom the claims process to ehicle technology, all our businesses ha e changed due to O -1 , and we can no longer sit bac and operate our businesses the same old way— owners and employees need to get
in ol ed. hings will not ﬁx themsel es. An area of the industry needing particular attention continues to be attracting new talent to the industry. “ e plan to continue to be creati e and inno ati e when it comes to attracting students to local collision school programs, pro iding the support needed by instructors and students while in schools, and continuing to help connect students with local and national employers, said Brandon E ckenrode, director of deelopment for E . Anderson also emphasized the importance of AAS remaining focused on the next generation of collision repairers. “ espite the pandemic, the a ailability of a future wor force remains a high priority for the industry, so expect that the wor of A S innesota areers in Auto epair Ser ice will continue, she siad. “Our ou ube ad ertising campaign has been extremely successful, as has been our wor to support local high school auto programs. “ or 2021, A A s goal and desire are to wor closer with all the schools in Oregon that oﬀer automoti e programs for our students, said A A Executi e irector Cathi W ebb. “ A A members o. 1 complaint is the lac of new employees, and belie e that the automoti e programs need A A s help to eep their programs going and encourage our youth to consider our trades as a career option. “Marg aret Rag an in our oﬃce has done an excellent ob in staying in touch with teachers and connecting A A industries with the school s needs. A A hopes to expand on that course in 2021. A A resident S usan Rokosz has a similar goal “Our ew ear s resolution is to continue wor ing towards greater di ersity in the automoti e industry, she said. “ reater di ersity beneﬁts both the talent entering the industry and the companies hiring that talent. ro iding continuing education and networ ing opportunities for association members is also ital to industry leaders. “Share successes with other body shops across the state urged A A resident Burl Richards. “ e want to let other industry shops
now that there is power in nowledge and education, and that we need to wor together in order to ma e a positi e change for our industry. “Our resolution will be to loo at irtual conferences and training in a new way, noted Diana DeLeon, executi e director of ASA-A . “ eing able to oﬀer shop owners and their employees top uality training and networ ing in this new en ironment is our goal, along with showing the beneﬁts of sa ing on costs by eliminating tra el and time away, which can allow more people to attend. “ he irtual platform also allows training classes to be recorded, then iewed at a later date for those not able to oin li e classes or those who would li e to ta e another loo . Our irtual e ent coming this spring will be one not to miss. A A is eager to “bring our leadership and members bac together in face to face settings to continue the networ ing and exchange of information and nowledge among the industry s ﬁnest representati es, said resident and EO Rodney P ierini. “ e are hopeful that we ll be able to safely bring members togeth-
er for AAS s Annual eeting and eadership onference on ay 20 and deli er the education, networ ing and camaraderie that e eryone is so hungry for right now, said Anderson. Oﬀering ongoing training is also important to ASA orthwest. “ASA orthwest would li e to bring the automoti e industry together, and we feel we ha e a good start with the ﬁrst rofessional Automoti e irtual Education A E raining on an. -10, 2021, said Jeff Lovell, president and executi e director. “ e ha e partnered with other automoti e trade associations from all o er the .S. to form this partnership. ASA orthwest is loo ing forward to ser ing our members with education, adding alue to them and their business in 2021. S S demonstrated its dedication to continuing education by con erting the association s epairer ri en Education and other programs to a irtual en ironment. “ hile irtual deli ery clearly has its ad antages, it is no replacement for the face to face interaction See New Year’s Resolutions, Page 16
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Employer Coalition’s Legislative Priorities in Florida Go Beyond Pandemic Recovery by John Haughey, The Center Square
ax cuts, O -1 liability protections, adopting an “e-fairness bill, tax credits to incenti ize inestment in manufacturing and encourage contributions to the state s unemployment fund, and a sales tax holiday for restaurants are among next year s legislati e priorities for a coalition of lorida employers. he estore Economic Strength through Employment ourism ESE as orce, which formed in April to pro ide recommendations in guiding lorida s post-pandemic reco ery, submitted its ﬁnal report to o . Ron DeS antis and state lawma ers this wee . ESE , spearheaded by the Associated ndustries of lorida A , lorida etail ederation , ational ederation of ndependent usiness and lorida estaurant odging Association A , includes more than 0 associations representing health care, agriculture hospitality, tourism, manufacturing and retail employers. he report is compiled from ﬁndings by ESE s 1 0-member tas force s 10 wor ing groups, which studied agriculture, health care, hospitality and tourism, large and small employers, legal liability and legal reform, manufacturing and supply chain, retail, taxation, and transportation and infrastructure. ESE s report oﬀers a 2021 “wish list of recommendations to boost the state s immediate pandemic reco ery, but also includes longterm suggestions, such as de eloping the “training infrastructure that targets 21st century s ills and career paths while target ﬁlling high-wage, high-s ill career acancies in adanced manufacturing. Among ESE s legislati e priorities are proposed reductions
in the state s corporate income tax, communications ser ices tax, business rental tax and exemptions for essential businesses and essential wor ers “entirely from O -1 liability. he tas force called on lawma ers to clarify “which type of wage classiﬁcation is deemed as essential wor ers and to address O -1 liability “as uic ly as
reate a tax credit for employ- more than 00,000 direct and indiers to contribute to the state s nem- rect obs across the country. “ ith ployment ompensation rust und multiple deep-water ports, exceland do not “penalize businesses for lent air-transport capabilities and O -related layoﬀs by counting a growing distribution capability them against the experience-based sustained in estment is warranted, ESE stated. tax rate. Aerospace According to Space ESE called for focusing relorida, more than 1 ,100 comco ery eﬀorts into the “three-legged stool of lorida s economy—tour- mercial companies employ at least ism, agriculture and construction— 1 0,000 residents in high-tech, but also into emerging ob high-wage obs within lorida s 20 generators, noting lorida s billion aerospace industry. iotech lorida is “home to economy has been “dri en by a highly di erse range world-renowned biomedical instiof business and industry tutes, pharmaceutical and medical de ice companies and more than sectors for 20 years. “ O -1 has had a 200 pharmaceutical and medicine terrible eﬀect on lori- manufacturing companies, ESE da s 0 billion hospitality stated. inancial ser ices According industry, but the state s agto Enterprise lorida, ﬁnance, inricultural and construction The Florida state flag flies. Credit: railway fx/Shutterstock. sectors are stable, the re- surance and professional ser ices com of the state s wor force, port stated before recom- employ possible to a oid acts which would mending lawma ers address these with nearly 1 ,000 ﬁrms employonly ser e to harm the business re- sectors ing more than 00,000 loridians. co eries needed to get our state bac nternational trade lorida s on trac . 11 . billion maritime industry, the We thank The Center Square for reAmong other recommendations nation s second largest, generates print permission. is to ma e permanent an alcohol-to-go O -1 policy to allow restaurants to sell alcohol with to-go food orders and a short-term sales tax holiday for restaurants and bars. ESE also called on lawma ers to Adopt an “e-fairness bill that COMES THE SEAL re uires online sellers to collect and remit sales tax “to ensure consistenFit cy in sales tax collection re uire12345678 ments between online mar etplaces Function and lorida retailers. Appearance Adopt a anufacturing obs and eco ery n estment Act that Performance “le erages future state tax credits Materials to incenti ize in estments today in manufacturing and small businesses 12345678 crucial to the supply chain for food, technology, health care e uipment and medicine.
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Distracted Driving ing witter when they re piloting multi-ton illing machines. e ust don t do it. ederal safety agencies could re uire all cars or cell phones be outﬁtted with technology that renders most functions unusable when the ehicle is in motion—and accept the incon enience of stopping a passenger from sending a text as a small price to pay for sa ing thousands of li es e ery year. e could also ta e the not-atall-radical step of banning all cell phone use behind the wheel nationwide—something e ery single European country has done—while enhancing automated enforcement of the laws we e already got and increasing ﬁnes and license penalties, as ermuda, the hillipines, atar, and many others ha e already done, too. And in the long term, we could stop allowing automa ers to manufacture cars that explicitly encourage cell phone use by inte-
grating bluetooth into on-board control centers, especially if they ha e touch screens—something for which top safety experts ha e ad ocated since the technology became widespread. And no, “hands-free cell phone tech isn t much safer. ut in a country that all but reuires a pri ate ehicle and a cell phone for participation in society, enforcement and technology-based solutions may ne er completely uash our distracted dri ing problem—and increased ﬁnes, especially, ris creating unacceptable ine uities for communities of color that already dangerously o er-policed. oreo er, some experts thin we wouldn t need to rely on ﬁnes at all if we ust redesigned our roads to encourage dri ers to pay more attention to their surroundings. “ f you thin of an interstate, e erything about it is designed to minimize the need for dri ers to thin , said Bill S chultheiss, ice president and director for sustainable safety at oole esign. “ t all starts there people thin they can loo at their phones because e erything around them is pretty predict-
able, and designed for them to go fast. “And transportation engineers , as a profession, ha e ta en a lot of those highway design principles to city streets. As people get more and more comfortable being distracted, it s going to be harder and harder to ﬁx it. ndeed, endri e s own data may suggest that cities that too uic action to calm roads during the pandemic saw their eﬀorts pay oﬀ behind the wheel. Of the top ﬁ e cities with the highest rates of cell phone use, only Austin, , had a signiﬁcant Slow Streets program, while hicago, San Antonio and allas hosted extremely modest street closure e ents in a handful of neighborhoods. oston, etroit and Seattle, by contrast, all won plaudits for their car-limiting initiati es, and landed on the list of the top ﬁ e cities whose dri ers reached for their phones the least. ut e en larger-scale temporary street closures can only do so much—and experts say we need
foundational change, both for now and for the future beyond the corona irus. “ here s still a pandemic, and there will continue to be one or at least another for six months before e eryone is accinated, said Schultheiss. “ ut in the road safety world, what we re still seeing is a ton of con ersation about automated ehicles, which is a much longer-range solution. “ here needs to be a seriousness about de eloping that technology, but we also ha e to be realistic about when it will be ready. f people, right now, are distracted of the time they crash their cars, that s not going to get any lower anytime soon. e ust need systemic change to our roadways. We thank StreetsB log U SA for reprint permission.
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Continued from Page 4
Influence on Consolidation enormous pools of capital re uired to enable collision repair industry consolidation. ( See Fig . 2 ) he high elocity of E deal-ma ing diminished in 2 2020 as dealma ers felt the impact of the O -1 pandemic. 2 2020 was the ﬁrst full uarter in which global economies had to slog through the pandemic, and the slowdown in .S. E deal acti ity became more apparent. According to e uin, E fundraising momentum has slowed from 201 s record-setting pace, although it will li ely remain healthy. ( See Fig . 3 ) E s interest in the collision repair industry in 2020 remains strong. Since the beginning of 2020, we ha e experienced a growth of E ﬁrm acti ity scouring the collision repair industry for possible in estments in SOs. urrent ri ate E uity Strategic n estors with .S. and anadian SOs ( See Fig . 4 )
here are now 1 pri ate e uity and strategic in estor ﬁrms in the .S. and anada that represent 2 . or 10. 2 billion of the nation s re enue
ners became the most recent pri ate e uity ﬁrm to announce its entrance into the collision repair industry, by ac uiring se eral SOs totaling 21
output A , and 1 . or million for a total orth America share of 2 . or 11. billion in re enue co-managed by pri ate e uity and collision repair owner teams. n o ember, enterOa art-
locations and 1 million in re enue, with a target of million by year end. rior to enterOa , the four most recent SO pri ate e uity acuisitions in ol ed A apital and
rash hampions ew ountain apital adding to its 20 billion portfolio with a -shop lassic ollision ac uisition oar apital ri en rands ac uiring the Auto franchise and the 10-shop Southern alifornia SO Auto enter Auto ody A A and Sus uehanna apital ac uiring randywine oach or s, with four locations in ennsyl ania. hese ac uisitions indicate potential in estors continue to see potential in the collision repair industry. he transactions re ect how small- to medium-size SOs are partnering with E companies to help accelerate their expansion and growth, creating nascent models where small to medium aggressi e SO consolidators are now competing as they build their regional and super-regional platforms to compete with the larger legacy consolidator SOs li e aliber and oyd erber. ( See Fig . 5 ) here continues to be pri ate e uity ﬁrms such as rontenac, in hicago, , reaching out to court smaller-to medium-size SOs interested in partnering with them to See Influence on Consolidation, Page 18
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New Year’s Resolutions and onsite engagement that occurs during an e ent, Schulenburg said. “ e are determined to wor with our partners to ﬁnd ways to safely deelop and promote in-person opportunities for learning and information exchange. “ n 2021, plans to bring to our members, said hair Cheryl Bosw ell. “ etwor ing is important, and we realize our industry is cra ing these opportunities, considering the changes in the world. Stay tuned for exciting educational and networ ing opportunities ASA Executi e irector Ray Fisher agreed training is ital. “ he one word that will dominate 2021 as a resolution would be adaptable, isher said. “ e e all seen the rapid changes the collision industry had to ma e uic ly in ﬁrst uarter 2020 when the pandemic hit, and how it aﬀected the mar etplace for collision repairers, both short and long term. “ASA already had numerous digital resources in place so we expanded our fre uencies and deli ered information uic ly and often---we will continue to do that in 2021 with our 0 Automoti e onference Expo on April 0 and ay 1, 2021. Josh K ent, who ser es as executi e director for both A and A, hopes to see both associations continue to pro ide more training to shops in their co erage areas, while also increasing membership. “ atching the changes that ta e place as shops learn more about proper repairs that s rewarding in itself ent said. rowth also continues to be an important goal for associations as the calendar ips to 2021. Executi e irector Lucky P ap ag eorg hopes to see AAS A “steadily grow our association s membership numbers. n doing so, we will strengthen the oice of e ery shop, large or small, and pro ide the
information and educational tools to assist them in being successful in the future. “ he s y is the limit in 2021 said James Rodis, ice chair of A A. “ e hope to grow the association and get some legislation passed, as well as help pro ide members with easy access to education and continue to push for safe and proper repairs. “ he other part of adaptable for ASA is responding to the rapid changes happening with the manufacturers and the information we are recei ing in ashington, . ., as the administration changes, isher said. “ e now that the new administration is intent on stimulating E sales and deli ering alternati e fueled ehicles. e ha e a representati e that is in ol ed in many coalition partnerships to ensure we are at the forefront, ta e part in the discussions, and that we help the industry with those changes through these relationships. Associations also plan to continue progressing the initiati es pre iously underta en. “ E A s ew ear s esolution for 2021 is to continue de eloping and promoting data integration standards that will be rele ant in the future, E A Executi e irector P aul Barry said. “ hrough our olunteer committees, E A members and the industry wor together to ensure the organization remains a neutral forum where uniform electronic standards and guidelines are created that allow all segments of the collision industry to be more eﬃcient. “Apart from maintaining our acti e O response, the association will focus on growing public and industry recognition of its trademar ed ecycled Original E uipment OE as a way to accurately identify the parts that our members sell, said S andy Blalock, executi e director of A A. “ OE parts are originally from the manufacturer, and A A is wor ing on se eral public awareness and branding campaigns—including a reality show, otaled reasures — to showcase the truly positi e impact that this industry has around the
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world. eferencing members anecdotes about increased diﬃculties with insurance carriers, Schulenburg noted, “ ow, more than e er, it is critical to ha e the enue and the oice to address the ery real challenges ta ing place on the collision repair center oor. “As an association, 2021 brings an opportunity to help draw those challenges out, shine light onto some of the dar er areas of the process that impact the consumer and ﬁnd mechanisms to help impro e understanding amongst all parties regarding what is necessary to properly repair these increasingly ad anced ehicles that ﬁnd their way into our facilities, Schulenburg said. “2021 may hold many things in store for us and our industry, but the challenges only help to focus the resol e we ha e in our mission of S S, Schulenburg continued. “ here has ne er been a time where education, information and a oice of ad ocacy ha e been more necessary, and we remain steadfast in our intent to deli er on that for our members and non-members ali e.
“2021 presents an opportunity to demonstrate the true educated professionals that we are and ta e control of being the experts accordingly, isher noted. “Our pro ect to identify the proper OE ser ice procedures for pre post scanning of ehicles and ehicle calibration for A AS systems has been a great start, and ASA is grateful to our ollision Operations ommittee olunteers and past board member Darrell Amberson for their de otion to the endea or. “Our responsibility is to return ehicles to their pre-loss conditions with the integrity of all safety systems as they were designed originally the li es of families across the .S. rely on us to do that espite the challenges that 2020 held for all of us, it s reassuring to now these industry leaders are leading the charge to ensure 2021 sees growth, progress and success for collision repairers across the country. m hopeful 2021 will allow us all to see each other face to face again, and welcome feedbac and suggestions so we can bring you the best information a ailable in 2021. appy ew ear, e eryone
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Influence on Consolidation grow their business to a regional or super-regional MSO.
with $2 0 million in annual revenue. There are 31 independent existing MSO organizations with between $15 million and 19 million in annual revenue that can easily grow into this meaningful PE targeted $2 0 million
the collision repair industry, especially with the large number of independent$10 million multiple-location operators still operating that could turn into acquisitions. This activity can be viewed as a proxy for what will continue as we enter the next decade within the collision repair industry. This is an excerpt from The R omans Group annual report, A 2 019 roﬁle of the E ol ing .S. and anada ollision epair ar etplace, now available. The report contains the complete results of their research and analysis for 2 019, including more than 65 charts and graphs throughout more than 80 pages, with historical trends and a view of the future. To purchase the report, contact Mary ane urows i of he omans roup at mary ane romans -group.com.
Despite these PE deals and continued MSO acquisitions, there currently remain 4 0 independent MSOs
segment. We expect 2 02 0 and 2 02 1 to be years of ongoing consolidation within
Continued from Cover
tor to this disparity is that women represent a signiﬁcantly greater portion of health care employment,” the report said. “According to the .S. ensus, by far, the largest health care occupation is registered nurses, with o er 2. million wor ers, followed by 1.2 million nursing, psychiatric and home health aides. omen ma e up more than of wor ers in both large occupation groups.” he ast ma ority of acti e wor ers compensation claims related to O -1 do not include a medical encounter or require hospitalization, noted. owe er, 20 of the medical claims required inpatient hospital stays, the report said, with 1 requiring admission to intensive care units. “ ot surprisingly, said, “admission into intensive care units dri es the costs of O -1 wor ers comp medical claims. According to the report, wor ers admitted to s, on a erage, stayed in the hospital for 11.5 days, compared with nonpatients who
Medical Claims “medical data call.” The increase in medical claims is oﬀset by a 1 decline in o erall acti e wor ers compensation claims in the ﬁrst uarter of 2020 and an 1 decrease in acti e wor ers compensation claims in the second uarter of 2020, according to . “There is no question that the O -1 pandemic has had and will continue to have a measurable impact on medical treatment of inured wor ers in the wor ers compensation system, report authors Dav id Coló n and Raj i Chadarev ian wrote. “The question is ... to what extent? The simple answer is a single metric, and that is time. t may be years before we grasp the full eﬀect of this pandemic on . According to the report, about 1,200 O -1 medical claims were ﬁled in lorida during the ﬁrst six months of 2020, with 0 ﬁled by women. “One potential contributing fac-
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Kia’s Kurcz Named to Leadership List Julie K urcz, executive director of product quality for K ia Motors America, has been named to the Automotive News 100 Leading Women in the North American Auto ndustry for 2020. he list, compiled e ery ﬁ e years since 2 000 by a team of Automotive News editors and reporters, is comprised of talented and in uential women of various disciplines who ma e a signiﬁcant impact on the automotive industry. K urcz is being recognized for the second time. urcz s fascination for the automobile spar ed at a ery early age, when she would spend time wor ing with her engineer father in the garage. After college, she shifted smoothly into the auto industry as a manufacturing engineer, and in 200 , she oined ia with the hopes to help transform the brand into an industry leader in quality and craftsmanship. ore than up to the tas , urcz has been a ey contributor to ia s meteoric rise and its worldclass model line here in the .S. Source: K ia
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autobodynews.com / JANUARY 2021 AUTOBODY NEWS 21
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with Stacey Phillips
From the Desk of Mike Anderson with Mike Anderson
Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.
It’s Time to Address the Other ‘Pandemic’ in Our Industry s it possible to yell at people through an article li e this hose of you who ha e participated in training or seminars or 20 groups that did years ago no doubt remember how would sometimes ump down someone s throat. here were times you d see me “chew em up and spit em out. e tried o er the years to become a inder, gentler i e. ut m getting bac to a point where m genuinely angry. Actually, m not sure if “angry is a strong enough word. e ha e a pandemic in our industry, ladies and gentlemen, and m not tal ing about O -1 . e ha e a pandemic of people who don t understand or uite honestly don t care what it ta es to repair a ehicle properly. And this pandemic is going to end up illing people if we don t get it together ASA . ou may thin m being o erly
dramatic. ut can show you data that pro es what m tal ing about. E ery year, my company conducts estimating training for hundreds and in some years, thousands of people. Some of this training is done on behalf of automa ers, some is for associations, and some is for our indi idual clients. f you ha e attended one of the irtual ollision Ad ice estimate training sessions since O -1 began, you are aware that a wee prior to the class, we send out wor for you to complete ahead of the training. e send you photos of a collision damaged ehicle that needs a uarter panel replaced, and the assignment is to prepare an estimate for that ehicle. E eryone uses the same rates for labor and materials. ow understand the limitations of photo-estimating. ut what m loo ing for here is each person s
le el of understanding of nowing what OE procedures need to be researched, and their ability to do so, and each person s understanding of what s included and not included in the estimating systems. e then build a table showing how many total labor hours were included by each anonymized estimator, bro en down by body, paint, frame and mechanical, and how many total line items were on each estimate. e prepare an estimate using each of the three estimating systems, so no matter which one the people in the class use, we can do an apples-to-apples comparison. f you don t thin there s a pandemic of people not nowing how to properly ﬁx a car, send me an email and will send you one of these tables so you can see what a dramatic diﬀerence there is among those who
now and those who don t. One person will ha e 22 hours of body labor. Another will ha e . e wrote a 1 ,000 estimate when other estimators, before the training, were turning in estimates totaling , 00 or ,000. hat the hec hen we re all loo ing at the same ehicle. hat s the diﬀerence e ﬁnd their estimates are incomplete because hey didn t ta e the assignment seriously. • They are uneducated or untrained. hey do not now how to properly research that speciﬁc automa er s procedures as to what it ta es to perform a proper and safe repair. hey didn t ha e or spend the time necessary. now this isn t easy.
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wrote uarter panel replacement estimates for four diﬀerent automa ers ehicles. or one of those automa ers, it re uired researching and re iewing 1 pages of OE documentation. or another, it was 1 2 pages. he headlight replacement alone on one ehicle was 0 pages. oes this ta e time es. Some in my classes will tell me what we e written “is not realistic. eally Are you idding me hose who now me now that ha e ourette syndrome, and a comment li e that absolutely sets my tics and twitches in motion ow e been getting a ton of calls recently from shops saying this insurer won t pay for or , or they re getting ic ed oﬀ this program or that program. get that. m not saying the insurance companies ma e it easy to do the right thing. hey don t. Some are better than others. m not saying insurance companies will pay for all lines of the estimate wrote. ut at the end of the day, we are our own worst enemy because we are so uneducated about what it ta es to properly ﬁx that ehicle. e
don t ta e the time to research the repair procedures. And that ma es it hard for the shop that is trying to do the right thing. magine if all those shops in one of my classes were all in the same town. ou e got this person, who is trying to get paid . legitimate labor hours, and the guy down the street is only charging for . And fran ly don t care if you lea e oﬀ some paint procedure on your estimate, or charge three fewer labor hours for a dent. hat isn t going to ill anybody. ut see shops not nowing they need to conduct seat belt inspections, or they need to measure steering columns, or they need to set up and perform destructi e test welds. Or they are lea ing oﬀ needed calibrations and initializations all because they didn t research what was needed. on t tell me those safety items are left oﬀ because some insurance company won t pay you. hat s a bunch of crap. As my friend Dean Hancock says, “ hat dog don t hunt uite honestly, it doesn t mat-
ter what the insurance carrier will or will not pay. hat matters is nowing what it ta es to repair the ehicle safely and properly. hen a ehicle owner brings a ehicle to your facility, they are saying, “ trust you to loo out for me and my family. hat are you doing with their trust Are you doing right by the consumer et me put it this way m proud to ha e ser ed in the .S. military, and see those helping preser e the freedoms we ha e as heroes. see ﬁreﬁghters and police oﬃcers and E s sa ing li es as heroes as well. ut here s what m also going to tell you he shop owner, technician and estimator who ma e the eﬀort to research OE repair procedures, who ma e sure they now what is needed as part of a safe and proper repair, and who ma e sure it happens they re heroes too. hey are sa ing li es. e ll ne er now how many li es were sa ed when a pedestrian or a id on a bi e is suddenly directly behind or ahead one of the ehicles they repaired, and the ehicle systems wor ed properly to stop that
ehicle in time. or those doing all those things, salute you. ut fran ly, far too many in this industry don t fall into that category. hat ma es me angry. see people who are trying to do the right thing really struggling and being penalized because of those of you who aren t. y hope and prayer is those dedicated to doing the right thing will hang on, and the rest of you will start to do your part to end this pandemic in our industry of people who are uneducated, who are untrained, or who fran ly ust don t care. ust as before became a “ inder, gentler i e, this isn t intended to be mean-spirited or disrespectful. ust want to tal straight to an industry that means more to me than anything. m declaring war on this pandemic. hich side are you on t starts with ta ing personal responsibility.
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with Stacey Phillips
Techs of the Future with Stacey Phillips
Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at email@example.com.
Cracking the Code to Recruiting and Hiring Collision Repair Technicians ollision repair owners and managers across the country say hiring technicians and high turno er rates ha e become critical issues in their businesses. Employee engagement may be the ey to sol ing these problems, according to Dustin P eug eot, owner of the atrix rade nstitute, and K ev in W olfe, owner of eaders ay. eugeot and olfe recently discussed how to “ rac the ode to technician recruiting, and oﬀered inno ati e solutions for shops to maximize the eﬃciency and retention of current employees. heir
ma e money, added eugeot. “ f we can focus more on retaining and growing our employees, they will do the recruiting for us, and then we can do what we are really good at ma ing money in the collision industry. eugeot said nearly 0 of people who complete a collision repair training program defect from the industry in 11 months. “ e ha e a retention problem in our industry, not a recruiting problem, he said. “ e ha e to ﬁnd ways to ma e this industry more palatable and exciting for them and not ust get frustrated when they act exactly the way we assume they would during the inter iew process. olfe said upgrading organizations and mo ing into a 21st-century economy are crucial for sur i al, especially now during the pandemic. “ ou can t sit bac anyDustin Peugeot, left, owner of the Matrix Trade Institute, and Kevin Wolfe, right, owner of LeadersWay more and pretend that you can continue to go on this presentation was held as part of the way, he said. “ ou can t achie e Society of ollision epair Special- great results with the wrong people ists S S epairer ri en ews eugeot and olfe oﬀered se Series during SE A 0. en steps to crac ing the code to talent olfe cited a allup poll con- and de eloping the potential of the ducted in une that addressed the people who show up to wor e ery engagement and well-being of the day. wor force. According to the poll, nearly 0 of .S. wor ers said 1. ight Sourcing they were either acti ely disengaged or not engaged at all at their obs. he ﬁrst step is sourcing people. Al“ n almost 20 years, we e done though internet ob sites, such as nalmost nothing to better the wor deed.com, and ocational-technical conditions for the people who are schools are good options, olfe also showing up e ery single day, said ad ises thin ing more broadly. olfe. “ et, organizations continue “ e ha e to start loo ing e to mo e away or shy away from lead- erywhere, he said. “ alent doesn t ership, coaching, training and wor ust exist in somebody s bac yard ing at all le els to de elop people. with a young person who li es to be hen olfe isits collision re- under the hood. pair shops, owners often complain eugeot said employees care about employee retention. n re- about wor ing at a business where sponse, he tells them, “ ou already they can grow and there is a clear caha e the talent your ob is to de el- reer path to follow. op it. “ e should constantly be re“Our time is aluable hiring cruiting those from all angles of life and ﬁring ta e away our ability to who want to wor hard and ma e
money and feel great about a s ill, he said. etwor ing with the local hamber of ommerce, a otary club or A meetings can also be helpful when loo ing for employees. ltimately, the goal is to become a talent magnet. “ ecoming a talent magnet means being a leader who is de eloping people e ery day not ust when they ha e time, said olfe. 2. ight Selection An important part of crac ing the code is how owners and managers approach the inter iew process. ypically, when bringing in new people to an organization, inter iewers will as basic uestions such as ou wor ed for ollision o you ha e tools Are you - A certiﬁed ill you wor for our company
hen can you start nstead, olfe ad ocates focusing on three critical steps. irst, he recommends screening potential candidates. “ don t want to bring in someone for an hour if now right away that m not going to continue with them, he said. Second is conducting what he referred to as a top-grading inter iew, going through the person s resume and references. eugeot said this demonstrates to potential employees that you care and are going to loo into their bac ground. “ f you let them now you are disciplined enough to ma e a couple of calls and read more than the ﬁrst se en lines, it lets the candidate now you are ta ing this as serious as they are, he said. uring this stage, olfe and eugeot ad ocate conducting an assess-
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ment of a person s technical, personal and cogniti e s ills. f the candidate seems li e a good ﬁt for the organization, the ﬁnal step of the process is conducting a focus inter iew. his in ol es bringing the person in to wor with the team and determining how e eryone gets along. . ight osition rior to hiring someone for a certain position, olfe suggests determining what that ob will entail, the duties the person will ha e and the results needed to be successful. “ t often surprises me how many organizations lac clear expectations, he said. olfe often as s organizations if they are playing chec ers or chess.
one another, he said. hen it comes to professional de elopment, eugeot recommends building their pride through education. “ ithout pride in what you are doing, de elopment, growth and efﬁciency don t occur, he said. hen employees demonstrate pride in their wor , eugeot said to then focus on proﬁciency, teaching them how to “do it right e ery time, while ensuring they understand what they are doing. ltimately, their conﬁdence will grow through hands-on learning and they will become more eﬃcient. . ight Support As a business owner or manager, olfe said it s essential to guide employees.
“It often surprises me how many organizations lack clear expectations,” — Kevin Wolfe “A erage leaders play chec ers they thin e eryone can mo e the same way, he said. “ e force people into roles that aren t good for them and then blame them because they don t perform. reat leaders play chess. Once those expectations are set and the business owner has determined the candidate will be a good ﬁt, eugeot ad ises selecting the person based on ﬁt and comfort “ o they deﬁne success the way we want them to and are they going to be comfortable doing it because we want them to . ight e elopment Once an employee is hired, de elopment becomes paramount, both personally and professionally. he o. 1 reason that will eep a person in an organization, according to olfe, is a shop s in estment in de elopment. “ t s not ust enough to de elop the professional talents of people, but also in est in the personal side as well and help them become better humans, said olfe. n terms of personal de elopment, olfe said to focus on s ills that will enable indi iduals to learn to communicate more eﬀecti ely to the people they will be wor ing with. “ istorically, great teams are those who care for each other and help
“ rac ing the code is all about becoming a better guide, he said. his doesn t mean doing the wor for them, but demonstrating how to do it correctly and supporting their de elopment. eugeot said this ta es discipline and commitment. On day one, he recommends pro iding employees with the tools and resources they need to do their ob eﬀecti ely. Although it re uires time and money, he said it builds proﬁciency and conﬁdence. An additional way to show support is ha ing constant communication with employees. “ eople need to now what s going on, said olfe. “One of the biggest deﬁcits in an organization is not communicating with employees or thin ing they can t handle the information. eugeot suggests appointing someone in the organization, other than the owner, who can deli er consistent positi e and negati e information to employees. . ight Accountability olfe said accountability is often a misunderstood concept, and many business owners belie e that caring for employees and ta ing actions that help them get better is the soft side of business.
“ uilding a culture around leadership and putting people ﬁrst implies that we shouldn t hold people accountable, said olfe. “ t s ust the opposite. f we re not holding people accountable, they are ne er going to feel better about themsel es. eugeot agreed. “ he easiest thing to do as a manager is to wal by a problem and commit that you will deal with it next time because you are busy now, he said. “ eing a good leader is nowing that it s your ob to ta e time and stop and ha e what can be percei ed as a hard con ersation. ather than being a negati e meeting, eugeot said it can be a positi e coaching session, where leaders share clear expectations, oﬀer consistent feedbac and remember there is “no negotiating on results. . ight En ironment E en if business leaders follow all the steps in ol ed in hiring and deeloping employees, olfe said the en ironment must be right, or they won t stay in the organization. “ eople stay in healthy cultures and organizations that treat them as
people, in est in their de elopment and consistently challenge them to get better, he said. “ eople aren t going to wor for you and do their best for you because they lo e you. t doesn t matter how nice you are, said eugeot. “ f you gi e them an en ironment where they can ta e pride and lo e themsel es for what they do, then you ll start to realize exponential growth and opportunity. or more information, contact ustin eugeot at dustin matrix tradeinstitute.com or isit www. matrixtradeinstitute.com, or e in olfe at e inw leadersway.com or isit www.leadersway.com. o watch this presentation and other S S epairer ri en Education sessions through August 2021, enrollment information can be found online at https rde.scrs.com.
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with Victoria Antonelli
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
with Gary Ledoux
The ‘80s—Foreign Cars and Other Changes As the 1 0s dawned, the collision ager to owner, or passing the business repair industry began to see some from father to son or daughter was profound changes, and some shops changing to the emerging concept of tried their darndest to eep things in esting and franchising. Garybeen. Ledoux A trade magazine, in the fall of the same as theywith had always 1 , announced the launch of the Say No to Foreign SAutobody etwor , the latest Some ideas die hard, li e saying concept in franchising body shops. “no to wor ing on “foreign cars. he article noted there had been y the early 1 0s, “foreign cars many attempts in the past to franchise had been pouring into the .S. for shops, but this was the ﬁrst to attempt the concept on a nationwide scale. with Stacey Phillips SAutobody etwor was a concept de eloped and administered by hief Automoti e Systems, ma ers of hief E iner e uipment. he article noted there would be no “company-owned with Ed Attanasio shops, nor would the franchise agreement call for the more than 20 years, yet some shops homogenization of shops. still did not want to wor on them All shops would continue to be despite the fact that some “foreign nameplates were now made in the .S. hey complained about thinBruce Roistacher ner sheet metal,with diﬃculty matching paint, parts that were hard to get and olatile parts prices. owe er, so-called “foreign cars were becoming a larger part of the repair landscape, and the global automoti e landscape was growing more homogenized. oreo er, dowith Gary Ledoux Choose Original mestic cars were becoming more li e “foreign cars inasmuch as the thic MINI Parts. ness of sheet metal, diﬃculty matching colors and the fact that, li e “forMINI of Charleston eign cars, most domestics were using 1518 Savannah Hwy unibody construction. Charleston, SC 29407 According to ard s Automoti e eports, import car sales were 1 of 855-831-0254 total .S. cars sales in 1 2. y 1 1, Hours: Mon-Fri 7:30-6 Sat 8-5 that umped to more than 2 . email@example.com Some shops tried to ignore the foreign mar et, with but they could not Stacey Phillips do it fore er and sur i e.
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locally owned and run, but would ha e to meet certain criteria to ualify for the networ , not the least of which would be the ability to repair unibody ehicles, something the industry still struggled with. Along with e uipment re uirements which oddly did not re uire hief products each shop would be responsible for ha ing properly trained technicians and managers. he SAutobody etwor franchising group opened its ﬁrst four shops, all in ebras a, in the fall of 1 . All were established shops that had been in business for between ﬁ e and 0 years. t is un nown what caused the demise of this initiati e howe er, the SAutobody etwor trademar was cancelled eb. , 1 .
n 1 , the A S A franchise was founded by Lirel Holt and pro ed to be much more successful. olt had been a shop owner and an expert in collision management for the company.
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28 JANUARY 2021 AUTOBODY NEWS / autobodynews.com
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America would be a beneﬁt for consumers and welcomed by the insurance industry. olt used his nowledge and contacts and dedicated his eﬀorts to building the A S A franchise system. e was the ﬁrst to apply customer satisfaction, ﬁnancial measurements and ongoing impro ements and consistency on a large scale. Some shops tried to ignore the franchising concept, hoping it would ust go away. t didn t. Waste is a Terrible Thing to Mind he early 0s also put the industry on the cusp of later E A and OS A regulations. A 1 trade magazine article dealing with body shop toxic waste noted it was only a matter of time before a number of local or federal agencies realized that body shops generate a lot of nasty waste and ha e no good way to get rid of it, many doing so illegally. hanges were proposed in 1 that would re uire most body shops and auto repair places to register with the E A and to properly store and dispose of hazardous waste.
y 1 , those proposals had become a reality. usinesses generating a minimum of 220 lbs. of hazardous waste per month would come under regulation. his meant most body shops would need to trac their waste from the time it left their shop through certiﬁed carriers to its ﬁnal resting place.
he Emergency lanning and ommunity ight- o- now Act of 1 , also nown as itle of the Superfund Amendments and eauthorization Act, brought a harsh reality to the doorsteps of e ery body shop in America. t re uired those employers dealing with hazardous materials to pro ide aterial Safety ata Sheets for e ery hazardous chemical used in the busi-
ness by employees. he shop would also ha e to ma e this information a ailable to local authorities and ﬁrst responders, such as ﬁre departments, so they would be aware of what they are dealing with in the e ent of a ﬁre, chemical spill or other emergency. his meant collision shop owners would be responsible for training employees about their rights under the legislation, the nature of the hazardous chemicals in the wor place and the information contained in S S sheets labeling information about potentially hazardous chemicals and record eeping. n the summer of 1 , Southern alifornia shops owners found they were targeted for some special en ironmental rules. Shops in southern alifornia that fell under the auspices of the South oast Air uality anagement istrict S A basically the os Angeles area were faced with a dire issue concerning compliance with the S A s recent interpretation of the 1 lean Air Act. t said if larger shops, spraying
more than 2 lbs. of olatile organic compounds O s , wanted to expand their business, they would need to buy ery expensi e e uipment to capture the O s, rather than expel them into the en ironment, use low O paints, or both. Smaller shops would be able to get away with low O coatings. his caused permits to build new paint booths to ta e four to six months. he industry was realizing it could no longer ignore its state and federal lawma ers, because lawma ers were no longer ignoring collision shop owners. t was all the more reason to belong to a local or state auto body association. n September 1 , the alifornia Autobody Association met for its annual expo and con ention at the isneyland otel in Anaheim, A. Among the arious spea ers was red Simonelli, legislati e ad ocate for the State of alifornia. is message was, “ hether you li e it or not, you ha e a partner the go ernment. e encouraged shop owners to get inol ed with go ernment to help dri e legislati e decisions that would aﬀect their future business.
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Metal and Creativity Collide at CRASH Jewelry hen your a erage metal technician Schimp e ma es sustainable eloo s at a damaged bumper, hood, welry from the metal of luxury autodoor or uarter panel, their ﬁrst in- mobiles for men and women. with stinct is to try and ﬁx it.Gary Wickert er husband, an, is the cout, when Christi S chimp ke, owner of B ev erly CoachCraft, a founder of AS ewelry in wes1-year-old shop specializing in retern os Angeles, A, sees any of pairing late-model ercedes- enz, , Audi, entley, orsche, these automoti e parts, her perspecolls- oyce, aserati and other high-end ehicles. t s a perfect source for with Stacey Phillips parts from high-end cars, after anything from fender benders all the way to complete totals. n 201 , Schimp e decided to set up her studio at with Stacey Phillips oach raft and that s when the magic began. Christi Schimpke created CRASH Jewelry in 2013, building “ hile was in my stuit into a successful business that has produced 3,000 pieces in seven years dio, ma ing more traditional ewelry from sil er and ti e is dramatically diﬀerent, fueled gold, noticed these beautiful cars that were coming into the shop e ery by her creati ity and an artistic eye.
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paint how they can be manipulated. f ha e any uestions, ha e an inhouse consultant right here to pro ide answers and he has been such a plus. hen Schimp e came up with the initial concept for AS ewelry, she new it was doable, but wasn t sure how to proceed. “ made a few mista es at the beginning, but as de eloped techni ues for ta ing metal oﬀ cars and Schimpke uses her jewelry to raise money for her pet creating polished ewelcharities, such as animal rescue, free legal aid, education ry from it, got better and and hospice organizations better, she said. “O er the se fenders and doors and gi e them past few years, e reﬁned my process to the point where many people a second life. Schimp e s husband, a former can t initially belie e that those eartechnician, has helped with her busi- rings or that cuﬀ actually started as part of a ehicle. ness e ery step of the way, she said. hen Schimp e started recei“ e began as a technician, so he ing accolades and great re iews for nows a lot about the metals and the day, she said. “ he paint reminded me of enamel, so began wondering if could create something with tho-
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30 JANUARY 2021 AUTOBODY NEWS / autobodynews.com
12/14/2020 4:25:25 PM
ated. n ino ibeen
e up t for new asn t
a es as for and weland r the proople eard as
her ﬁrst few pieces, from parts oﬀ a errari 0 hallenge Stradale, she was ob iously thrilled. “ lo e the fact that people are continually surprised when they realize that a cuﬀ or a nec lace is made from a hood, door or uarter panel of a car, she said. “ hen they ﬁnd out that it s from a ehicle, they are shoc ed and want to learn more about the process. y experimenting, we ha e de eloped methods to manually manipulate steel and aluminum, without aﬀecting the car s original paint. Since its inception, the sales at AS ewelry ha e increased by 00 , and today its in entory has grown from 0 to 100-plus items. he company has been featured in numerous publications, radio and tele ision programs. “A guest on the ﬁfth season of ay eno s arage was wearing one of my cuﬀs, and models on the runway during .A. s ashion ee wore some of my ewelry as well, Schimp e said. he clientele at AS ewelry spans a di erse demographic, including car enthusiasts, fashionistas,
artisanal crafters and those who simply en oy a good story about something handmade, Schimp e said. “ e ta e pride in our collection, and often embellish our creations with uality gemstones and cabochons, she said. “ n this age of mass production, handmade craftsmanship
CRASH Jewelry is best known for its cuffs, like this one made from a hood from an Aston Martin DBS Superleggera
seems to be a thing of the past, which is what ma es AS ewelry so special. racelets a a cuﬀs are Schimp e s best sellers, ma ing up almost 0 of her total sales. hey range in price from 0 to 1,100,
but a erage between 100 and 1 0. “ hree years ago, the business became iable and started ma ing a proﬁt, she said. “ e created approximately ,000 pieces o erall since day one. get a ton of return customers and many people buy items from us for corporate gifts or will purchase gift cards, so that people can pic the ewelry they prefer. AS ewelry is committed to being all-in when it comes to being a green business by repurposing discarded metal. “ e also donate a portion of e ery sale to multiple charities, and lo e to participate in fundraising e ents such as animal rescue, free legal aid, education and hospice throughout the year, she said. “ f an artist can use their art to help nonproﬁt organizations and causes belie e in, that s so satisfying. E ery once in a while, Schimpe s day gets a little brighter when she ﬁnds out about some prime amborghini, errari or unusual parts, for example. “ he most uni ue and special items that e e er made ha e to be from a amborghini allardo
Superleggera, she said. “ hat one stands out, including the ﬁ e cuﬀs did for an Australian race dri er with parts from a 1 orsche. e crashed it, so got a ton of metal from that one ehicle. n 201 , Schimp e found out about S usan P urkhiser, a stuntwoman who lost her belo ed in the 201 oolsey ire that hit os Angeles and entura counties. “ er friends sent me a piece of ﬁre damaged metal from the ehicle, and made a cuﬀ with it, Schimpe said. “She was mo ed when she recei ed it, and, of course, we were delighted as well. As the media continues to embrace AS ewelry and more and more high-proﬁle celebrities buy her pieces, Schimp e sees a great future for her company. “ lo e doing this, and as long as luxury car owners will get into accidents, will ne er run out of parts to turn into ewelry. rowse AS ewelry s website at www.crash ewelry.com.
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autobodynews.com / JANUARY 2021 AUTOBODY NEWS 31
12/14/2020 4:25:26 PM
2021 ASA X50 Automotive Conference & Expo
Investment Banker Tells MSOs the Industry Will be ‘Alive and Well’ Seven Years from Now
he Automoti e Ser ice Association, a national training leader for the automoti e ser ice and collision repair industries with its networ of ASA aﬃliates across the .S., will host its ﬁrst multi-day irtual conference and expo, April 0- ay 1, 2021. ASA 0 “ niting Our oice, niting our ndustry will create a di erse training lineup of courses and instructors that will pro ide ASA members and attendees with a high-tech learning experience and irtual expo that promises to be a uni ue experience for shop owners, technicians, ser ice writers and managers in the automoti e repair and collision sectors. he irtual training will ta e place April 0 and ay 1. ontent will remain online and accessible on demand to registrants for 0 days following the e ent. n addition, students can re isit technical and management sessions for maximum alue and learning impact. egistration for attendees will open eb. 1, 2021. Source: ASA
hen in estment ban er Rex Green spo e se en years ago at the 201 SO Symposium, he accurately predicted that at least one collision repair chain would ha e 1,000 locations within ﬁ e years.
During the online MSO Symposium, investment banker Rex Green said he foresees the largest collision repair companies continue to grow, but the ability of smaller MSOs to also grow has surprised him
So reen, who has been inol ed in ac uisitions in ol ing many of the largest collision repair chains in orth America, was as ed at this year s symposium, held irtually in o ember, what he pro ects he might be spea ing about at the e ent se en years from now, in 202 .
“ he collision industry will be ali e and well in se en years. t will be thri ing, said reen, now global co-head for the Automoti e Aftermaret roup at eﬀeries, . “ thin the large chains will ha e a meaningfully larger share of the mar et. e said the growth of large auto auctions, information pro ider nformation Ser ices and large alternati e parts suppliers li e orp. are e idence that “insurance companies are not troubled by large pro iders. e said the increasing need to in est in the ability to perform ehicle diagnostics and calibrations is ust the latest example of where higher cash ow and economies of scale gi es larger collision repair organizations ad antages. hat said, he admitted he would not ha e predicted se en years ago the growth he s seen in smaller SOs as well. “One of the things that s most surprised me is the ability of two-, three- or four-store chains to get to 10 or 1 or 1 or 1 stores, reen said. “ he beauty of this economy
and this society is that it constantly surprises me with its entrepreneurialism and creati ity. Another surprise to him At the 201 SO Symposium, he said, there was little discussion of the automa ers role within the collision repair industry. “Somewhere in the last se en years, the OE s ha e come piling into this industry, and they want their piece of the proﬁt pie bac , reen said. “ here is also a desire on their part to ha e their cars ﬁxed properly. here is, for them, a big branding importance to that. ighly impacting the industry by 202 , reen pro ected, will be the ability of the ehicle to transmit telematics data indicating when a crash has occurred, gi ing automa ers and insurers this information with the dri er needing to pro ide “ﬁrst notice of loss to their insurer. “ hat ﬁrst notice of loss is ne er going to be a phone call anymore, and it s not going to be ﬁrst, it s going to be instantaneous, he said, which may well change the dynamics between insurers, automa ers and shops.
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32 JANUARY 2021 AUTOBODY NEWS / autobodynews.com
12/14/2020 4:25:29 PM
Caliber Announces Internal Promotions aliber is pleased to announce Mark S anders, current president and OO, will succeed longtime EO S tev e Grimshaw , eﬀecti e an. 1, at which time rimshaw will mo e to full time executi e chairman. Sanders has spent his entire career in the automoti e industry, and oined aliber ollision in 1 as it expanded its operations into exas. As president and OO, Sanders led the growth strategy which expanded aliber ollision s footprint throughout the .S., while also positioning aliber for the future through the strategic ac uisition of other lines of business. e also led the consolidation and alignment of all brands— aliber ollision, aliber Auto are and aliber Auto lass—under the aliber umbrella, priming aliber for its next phase of growth. uring rimshaw s tenure, the organization grew from to more than 1,200 locations. aliber s re enue also increased from 2 million to billion. Source: Calib er
Ford Has a Controversial Message for Every Automaker by Jay Traugott, CARBUZZ
he state of alifornia made a bold political and en ironmental decision in September. An executi e order was signed by o . Gav in New som on the hood of a ord ustang ach-E declaring the state s plan to ban sales of new passenger ehicles with internal combustion engines beyond 20 . his gi es automa ers barely 1 years to electrify their entire lineup if they wish to continue doing business in America s most populated state. ord couldn t be happier with this decision and wants ri al automa ers to bac it as well. euters reports the earborn, -based company is now urging automa ers to support alifornia s new zero-emissions standards as part of an industry-wide bid to reach a consensus on the matter before resident-elect oe iden ta es oﬃce an. 20, 2021. ord s crosstown ri al, eneral otors, announced it no longer supports the rump ad-
ministration s continued eﬀorts to pre ent alifornia from deciding its own emissions laws. Originally, oined with oyota and A in support of rump.
eanwhile, , onda and ol swagen agreed with ord s position regarding the olden State. Se eral ma or automa ers were set to ha e a irtual meeting to discuss their next steps and ord s message is loud and clear. ord Americas resident K umar Galhorta recently wrote the following “ he iden Administration will not let the rump standards stand, and either by way of litigation and or a regulatory reboot, the new team will mo e in
a diﬀerent, more stringent direction. n other words, it d be pointless to resist alifornia s new rules because the incoming administration is expected to support them. ight as well start preparing for the ine itable. alifornia Air esources oard hair Mary Nichols also belie es the state s emissions rules could ser e as the basis for new federal standards. t is in the automa ers short- and long-term interest to form a consensus on this matter because the switch to electriﬁcation ta es time, money and serious planning. he sooner they start the better. n addition to s aboutface, EO Mary Barra re ealed a plan to launch at least 0 E s globally o er the next ﬁ e years with an in estment of 2 billion. O er two-thirds of those new E s will be for the .S. We thank CAR B U Z Z for reprint permission.
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Audi dealers strive to make you an Audi Genuine Parts fan. autobodynews.com / JANUARY 2021 AUTOBODY NEWS 33
12/14/2020 4:25:30 PM
3M Introduces Lightweight Performance Spray Gun Using Revolutionary Technology plication Solutions. “Oﬀered in six diﬀerent sizes, from 1.2 to 2.0, each After 10 years in development and atomizing head is optimized for feedback from customers worldwide, consistent atomization and superior 3M introduced the 3M™ Performance transfer eﬃciency, which adds up to faster cycle times for repair shops.” Spray Gun. Because paint never passes “Using revolutionary technology, the 3M™ Performance Spray Gun through the body of the 3M™ Perforwas developed by 3M engineers to mance Spray Gun and only through deliver top-of-the-line performance,” the disposable cup and nozzle, the said Jonnie Bloemers, global product cleanup and changeover processes marketer, 3M™ Performance Spray are streamlined. “That means there is no Gun. “Collision repairers more paint gunking up inwill experience faster cleanternal components, no more up, changeovers and cycle breaking down your spray time with this lightweight gun or soaking in solvent, product.” and no more cross-contamConstructed from an ination putting your job at impact-resistant composite risk,” said Haislet. material, the 3M™ PerforWith the quick-change remance Spray Gun was de- Jonnie Bloemers placeable atomizing heads, signed to oﬀer a full range of high-performance automotive coat- Haislet said cleanup is a snap. “Every time you swap out the ings, including paints, stains, primers, basecoats, topcoats, clearcoats, replaceable nozzle for a fresh one, epoxies and adhesives using replace- you can expect like-new spray performance,” he added. able atomizing heads. “In today’s collision repair “The secret lives inside our advanced interchangeable nozzle shops, it’s important for painters to technology,” said Brady Haislet, have dependable tools so they can application engineer, 3M Paint Ap- spend less time worrying about their by Stacey Phillips
Continued from Page 18
ASE Expands SpanishLanguage Test Options
stayed an average 7.5 days. Hospitalization for patients who required admission to ICUs totaled an average of $67,300 per inpatient stay compared with $38,500 per inpatient stay for patients who weren’t admitted to ICUs, according to the report. While people with pre-existing conditions or comorbidities are most at risk from COVID-19, NCCI’s report showed only 16% of medical claims submitted in the ﬁrst six months of 2020 had an “identiﬁable comorbidity,” such as hypertension or diabetes. “Worth noting, though,” the report said, “comorbidity is identiﬁable only if treated and reported by health care providers during the encounters. Additionally, at 16%, comorbidities play a larger role in COVID-19-related workers’ compensation claims than in non-COVID-19 claims, where just 5% of the claimants have co-morbidities.” We thank The Center Square for reprint permission.
To better serve the increasing number of Spanish-speaking professional service providers, the National Institute for Automotive Service Excellence (ASE) has added Spanish translations to select ASE certiﬁcation tests with the help of industry experts who participated in workshops hosted by ASE. Luis Arboleda of Superior Automotive Training, Rafael de Leon of Automotive Service Institute, Guillermo Martinez of Automotive Technical Center and Francisco Moreno of ZF Services, LLC worked with ASE to develop a comprehensive plan for implementing Spanish translations into the ASE test-taking process. No special registration procedure is needed to access the Spanish translations because they are built into the ASE test delivery screen. All ASE tests will continue to have the searchable English-to-Spanish glossary of technical terms.
spray gun and focus on perfecting their art to deliver consistent, quality results,” said Bloemers. “The gun
with. There’s nothing that it won’t do.” “It’s hard to get a system that all really works well together and I feel like the 3M [spray gun] really nails it,” said Dustin Zeiska, head painter at LaMettry’s Collision. “It just really does everything great.” “The 3M is a great gun; it sprays unbelievable,” said Russ Crambuilt, a painter at Buerkle Hyundai. “I think it’s the wave of the future— no doubt about that.”
was designed to be low maintenance and easy to use so painters have consistent performance.” Nate Johnson, a painter at Fairway Collision, said he was skeptical at ﬁrst about how well the plastic gun would hold up working in a high-production shop. He found that he liked the pattern on the 3M spray gun. “The metallic control by far is superior to some of the other guns on the market,” said Johnson. “It works for every car that I have sprayed
For more information, visit https:// www.3m.com/3M/en_US/collision-repair-us/featured-products/ performance-spray-gun/.
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34 JANUARY 2021 AUTOBODY NEWS / autobodynews.com
12/15/2020 3:34:44 PM
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autobodynews.com / JANUARY 2021 AUTOBODY NEWS 35
12/14/2020 4:25:31 PM
with Erica Schroeder
Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Driving Has Largely Rebounded, but Traffic Congestion, Resulting Claims Have Not
S usanna Gotsch says dri ers are ha e 0 of students in classrooms bac out on the roads, but changes in some or all school days, nearly two dri ing patterns are still more ad erse- in ﬁ e -12 students nationally still with Ed Attanasio ly impacting the number of claims and attend schools oﬀering only a irtual shop repair orders. option. otsch, data analyst for hese changes cut morning and nformation Ser ices and the lead- afternoon commute traﬃc signiﬁoﬀ spea er at the irtual SO Sym- cantly, otsch said, noting those are posium held in o ember, said e- the times of day in which federal data hicle miles tra with eled has Edrebounded Attanasio indicates about one-third of all accinationally to within of “normal, dents occur. but that traﬃc congestion and the he rebound in ehicle tra el claims that result has not. is happening with less congestion in part because of tra el during non-pea time online shopping deli eries occur across a broad swath of with Ed Attanasio the day, for example and in part because of longer trips by those a oiding air tra el. he end result, otsch said, is claims remained with Ed Attanasio down about 2 , year-todate, in early o ember. ut there is a broad range of mar et ariation in that statistic. otsch s data shows the hoenix mar et, for examwith Stacey Phillips ple, was down ust 1 , year-to-date, as of o ember Atlanta, harlotte and the i erside-San ernardino area in alifornia all had claims counts down less with Stacey Phillips than 2 . CCC Information Services reports claims being down At the other end of the nationally almost 22% year-to-date this fall, but individual spectrum, hardest hit among states’ results range from a 31% decline in North Dakota large mar ets are ashingto an 8% uptick in Louisiana ton, . ., San rancisco, She cited a number of statis- Seattle and oston, where claims with Stacey Phillips tics aﬀecting congestion. A study of are down between 1 and . , 00 oﬃce buildings showed, for he good news for shops is their example, that occupancy rates that olume of repair orders is not that far were near 100 in many metro areas below normal, otsch said. are now below 0 . n the middle wee of arch, “ hile many businesses are still shops in states with minor restricoperational, they continue to Phillips eep tions saw repair order olume dip by with Stacey their employees wor ing remotely, 1 . compared to the same wee in otsch said, noting automa ers and 201 , followed by a wee with a 22 high-tech ﬁrms are among the com- decline from the preceding year. he panies already announcing they will stats were e en worse for shops in eep their employees wor ing from states with ma or O -related rehome at least through next une. strictions, where repair order olume Similarly, although 1 states was down by 2 and 0 in those
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total cost of repairs was ,2 , up same wee s in arch. 1 , ust shy of , compared to y late October, howe er, repair order olume had rebounded to being the same period a year earlier, and up more than 1 for down about 10 compared the same 12-month period to the same period last year. ending in 201 . “ ith o erall olumes hat s based in part on continuing to be down slighta more than 2 rise in ly, we do expect that in 2021, non-dri able ehicles after claims counts and repair orhigher-speed crashes made der counts will be much better than they were in 2020, Susanna Gotsch of possible by less ehicle trafotsch said. “ ut we do ex- CCC Information Ser- ﬁc, she said, along with inpect o erall olume will be vices said congestion creases in the cost of parts less in 2021 than it was in during morning and and higher costs in the “misafternoon commute cellaneous sublet category, 201 . times hasn’t otsch shared a ari- rebounded from the “which is where a lot of the ety of other statistics during plummet in March fees associated with scanher presentation during the as much as driving ning and calibrations are apduring other parts of pearing. SO Symposium. the day has A line item for scanning ost of repairs, she said, has been up year-o er-year in was included on 1 of appraisals e ery month this year through Sep- in the ﬁrst uarter of this year, she in the tember. or the 12 months ending the said, compared to ust . third uarter of this year, the a erage same period in 201 . he a erage
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36 JANUARY 2021 AUTOBODY NEWS / autobodynews.com
12/14/2020 4:25:32 PM
fee for scans across appraisals that include them is 12 , she said. oo ing at claims only, shops in the second uarter of this year a eraged . labor hours per day on dri able ehicles and 2. hours on non-dri able ehicles that was up from . labor hours on dri able ehicles and 2. hours for non-dri able for the same period in 201 , but down slightly from . labor hours for dri able and hours for non-dri able in 201 . ewer repairs in shops in the second uarter also led to impro ed cycle time, otsch said from “ ehicle in to “ ehicle out, cycle time fell to an a erage of .1 days, down nearly a half-day from the pre ious uarter, and down from . days in the second uarter of 201 . or the 12 months ending with the third uarter of this year, 0. of claims had supplements, up from . a year earlier and up from 2. for the 12-month period ending in 201 , and those supplements accounted for 1 . of the total cost of repairs, up from 1 .1 and 1 . in the two prior years. he percentage of ehicles de-
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clared total losses has continued to increase, despite a rise in used ehicle pricing this year. “ e re now at a point where roughly 22 of all non-comprehensi e appraisals are being agged as total loss, which is a substantial increase considering that e en 1 years ago, only about 10 of all ehicles were agged as total loss, otsch said. hat is li ely to rise e en higher next year, she said, gi en the expected 1 decline in new ehicle sales this year. “ he ehicle eet will continue to shift older for the next se eral years, otsch said. “ any fewer ehicles were purchased this year by eets, which ultimately supplies the used ehicle mar et, and that will help eep used ehicle prices eleated, but as repair costs continue to rise and may outpace that, that will continue to push up the total loss freuency.
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Motus: Vehicle Depreciation to Slow as Much as 3% in 2021 by Auto Remarketing Staff
f you thin ehicle prices are high in 2020, ust wait til next year. According to the 2020 ehicle epreciation rends eport released by otus last month, 2021 is li ely to see depreciation rates slow between 1 and throughout the year, assuming current trend lines remain in play. As you might expect, the current and forecasted high ehicle prices are being dri en largely by pandemic-related impacts. hen automa ers shut down production this spring, otus explained, that led to a new- ehicle shortage. ut demand remained strong. And subse uently, used- ehicle supply too a hit, as well. “ he pandemic has decimated ehicle in entories, and consumer demand has remained surprisingly steady. t s no surprise we re seeing premium prices on both new and used automobiles, K en Robinson, mar et research manager at otus, said in a news release. “ ew- ehicle prices and re-
sidual alues both in uence depreciation and both ha e been impacted by the pandemic. f supply and demand trends in motion remain consistent, we predict that depreciation will decrease by 1 to o er the course of 2021.
n the full report, otus said “ ew- ehicle prices and residual alues both in uence depreciation. oth ha e been in uenced by the pandemic. Assuming consumer demand remains steady, we expect the tight supply of new ehicles to mostly oﬀset the increased used- ehicle in entory entering the mar et. We thank Auto R emarketing for reprint permission.
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12/14/2020 4:25:33 PM
Biden Says He Won’t Immediately Remove U.S. Tariffs on China
Experts: Classic Car Owners Should Beware Second Lockdown
resident Donald T rump ’ s 2 tariﬀs imposed on hina under the phase one trade deal will remain in place at the start of the new administration, resident-elect Joe Biden said in an inter iew with the ew or imes published early ec. 2.
ith diﬀerent go ernments threatening or e en beginning a second wa e of loc downs, ostensibly to “stop the spread of the no el corona irus, experts are warning classic car owners of the ris s. e all now ﬁrsthand that loc downs are de astating to economies, particularly small businesses. hey e also caused a spi e in mental health problems, substance abuse, suicides and domestic iolence. A wa e of di orce ﬁlings after might threaten a myriad of social and economic problems. ut these loc downs also carry a ris for your classic car. Out of ritain, classic car expert E ric Collins recently spread the message that loc downs might cause a classic car to deteriorate. As the cars sit for long periods of time, diﬀerent parts can wear out, seize up, etc. f you already new that, then congratulations, because apparently not e eryone is aware of the ris s. n some areas, going for a leisurely dri e in your classic car is considered criminal. hat means your
President-elect Joe Biden during an event in Wilmington, DE. Credit: Alex Wong, Getty Images
“ m not going to ma e any immediate mo es, and the same applies to the tariﬀs, iden said. e plans to conduct a full reiew of the current .S. policy on hina and spea with ey allies in Asia and Europe to “de elop a coherent strategy, he said. “ he best hina strategy, thin , is one which gets e ery one
of our—or at least what used to be our—allies on the same page. t s going to be a ma or priority for me in the opening wee s of my presidency to try to get us bac on the same page with our allies. iden told columnist T homas Friedman he didn t thin the .S. yet had the “le erage in dealing with hina. etting bipartisan consensus in America on “go ernment-led in estments in American research and de elopment, infrastructure and education would achie e this. “ want to ma e sure we re going to ﬁght li e hell by in esting in America ﬁrst, he said. iden said he stood by comments he made in a Sept. 1 op-ed in which he wrote “if ran returns to strict compliance with the nuclear deal, the nited States would re oin the agreement as a starting point for follow-on negotiations, ac nowledging to riedman “ t s going to be hard. We thank Ax ios for reprint permission.
by Steven Symes, Motorious
belo ed ride has to ust sit in the garage or you could face a big ﬁne and maybe e en ail time. ot dri ing your classic at all can lead to all inds of problems, ust li e with those barn ﬁnds we co er regularly. ust how many problems your car gi es you once you ta e it out of storage depends on many factors. Ob iously, moisture is a bad thing for a car, so putting a dehumidiﬁer in your garage is a wise mo e. E en better is a temperature-controlled garage, but not e eryone can swing that. ou might consider pulling your classic out to do “essential acti ities li e going to the grocery store. es, there s a ris with lea ing it in a par ing lot, especially with car thefts rampant these days, but you also run a ris by ne er using it. ltimately, you ha e the loc downs to than for being put in this precarious position. owe er, if you li e where a second loc down isn t being instituted, you re luc y indeed. We thank Motorious for reprint permission.
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12/14/2020 4:25:35 PM
10 Cities with the Most Expensive Driver Commutes by Heather A. Turner, PropertyCasualty360
ommuters ha e been on a much-needed reprie e these past couple of months as many businesses remain on a wor -from-home schedule to curb the spread of O -1 . ut with the possibility of O -1 accines circulating in the near future, wor ers may want to prepare for the return of the daily commute sometime in 2021. he a erage American wor er spends minutes a day on their daily dri e to wor , according to the .S. ensus. hen factoring in fuel and toll costs and ehicle wear and tear, dri ers could spend hundreds to thousands of dollars a year just on their commute. ippia recently e aluated 200 .S. cities with populations o er 100,000 to determine the cities where people are spending the most money ust getting to wor . or its analysis, the career search website multiplied the median hourly wage by the a erage commute time to determine the lost ﬁnancial opportunity cost in each city. ippia also calculated the estimated
wear and tear fuel costs by assuming an a erage of 1 mile for e ery two minutes spent dri ing two ways and the standard mileage rate of cents per mile from the S.
Av erag e commute leng th: 6 9 Daily commute cost: $ 1 9 . 6 9 7 . New ark, NJ Hourly w ag e: $ 1 4 Av erag e commute leng th: 6 7 Daily commute cost: $ 1 9 . 2 1 6 . P omona, CA Hourly w ag e: $ 1 2 Av erag e commute leng th: 6 3 Daily commute cost: $ 1 8 . 0 1
1 0 . S an Bernadino, CA Hourly w ag e: $ 1 3 Av erag e commute leng th ( minutes) : 6 0 Daily commute cost: $ 1 7 . 1 0 9 . S anta Clarita, CA Hourly w ag e: $ 2 0 Av erag e commute leng th: 7 7 Daily commute cost: $ 2 1 . 8 9 8 . P hiladelp hia Hourly w ag e: $ 1 6
5 . S tockton, CA Hourly w ag e: $ 1 5 Av erag e commute leng th: 6 9 Daily commute cost: $ 1 9 . 7 8 4 . Hialeah, FL Hourly w ag e: $ 1 2 Av erag e commute leng th: 6 4 Daily commute cost: $ 1 8 . 2 4 3 . Moreno V alley, CA Hourly w ag e: $ 1 4 Av erag e commute leng th: 7 2 Daily commute cost: $ 2 0 . 4 1 2 . New Y ork City Hourly w ag e: $ 2 0 Av erag e commute leng th: 8 4
Hyundai, Kia Fires Cost Automakers Another $137 Million yundai and ia will pay at least 1 million to the ational ighway raﬃc Safety Administration SA related to recalls of 1. million ehicles e uipped with heta engines.
the consent order are not satisﬁed. he two-year ia consent order includes an upfront payment of 2 million along with an obligation to spend 1 million on “speciﬁed safety performance measures. ia may also pay 2 million if it iolates conditions of the consent order.
he heta engines can cause ﬁres due to metallic debris remaining from when the engines were manufactured. he debris can enter the engine oil, damage the connecting rods and other engine components and cause engine failures and ﬁres. ased on the three-year yundai consent order, the automa er will ma e an upfront payment of million and e entually pay an additional 0 million on safety impro ements. yundai may also be re uired to pay another million if conditions of
he enter for Auto Safety petitioned SA in 201 to in estigate yundai and ia engine ﬁres following hundreds of complaints about the ehicles. Safety regulators granted the petition and launched an in estigation which still remains open. According to the enter, these popular models are the problem 2 0 1 1 - 2 0 1 4 Hyundai S anta Fe 2 0 1 3 - 2 0 1 4 Hyundai S anta Fe S p ort 2 0 1 1 - 2 0 1 4 Hyundai S onata 2 0 1 1 - 2 0 1 4 Hyundai S onata Hybrid 2 0 1 1 - 2 0 1 4 K ia O p tima
by David A. Wood, CarComplaints.com
2 0 1 1 - 2 0 1 4 K ia O p tima Hybrid 2 0 1 1 - 2 0 1 4 K ia S orento “ oday s announcement alidates the concerns of millions of consumers about a persistent safety hazard and should remind manufacturers there are costs beyond recalls for failing to report dangerous defects, as re uired by law, said Jason Lev ine, executi e director of the enter for Auto Safety. he consent orders claim yundai and ia waited too long to issue recalls of more than 1. million ehicles as ﬁre complaints continued to pile up. SA also says yundai and ia didn t report accurate information regarding the heta recalls. n addition to the monetary agreements, ia will create a new safety oﬃce in the .S., and yundai will build a facility in the .S. dedicated to safety in estigations. yundai and ia also agreed to create new programs to detect possible safety problems and each automa er will hire an independent third-party auditor who reports directly to the go ernment. We thank CarComplaints.com for reprint permission.
Daily commute cost: $ 2 3 . 9 4 1 . P almdale, CA Hourly w ag e: $ 1 5 Av erag e commute leng th: 8 6 Daily commute cost: $ 2 4 . 9 5 According to the car insurance comparison website he ebra, commuter car insurance policies cost an a erage of 11 more per year than pleasure use auto co erage. he a erage policy costs between 1, 2 and 1, annually. “ f you re a low mileage dri er, a commuter policy might not be your most cost-eﬃcient option, writes Av a Lynch for he ebra. “ hile relati ely new to the world of auto insurance, usage-based insurance policies can be a great solution if you dri e infre uently. ac ed by telematics, usage-based insurance policies use how you dri e and how much you dri e to calculate your insurance policy. n theory, the less you dri e, the more you can sa e. We thank P ropertyCasualty3 6 0 for reprint permission.
Ford, I-CAR Announce EV Training - A is launching a new series of expanded training surrounding hybrid electric ehicles E and battery electric ehicles E with ord otor ompany. hese courses are speciﬁcally designed to pro ide the industry with an o er iew of electriﬁed ehicles and safety considerations, as well as speciﬁc information on current and future planned Ford and incoln E E ehicles, including the new 2021 ustang ach-E. Eight new E and E training courses will now be reuired as part of the OE s ongoing eﬀort to pro ide ord ertiﬁed ollision etwor shops the tools, training, and information needed for uality and safe repairs. All of these courses are a ailable to the industry to further accelerate the training readiness for an electriﬁed future. or a full list of - A s training portfolio, including other ord courses, isit https www.i-car.com s browse Source: I - CAR
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