AASP-MN News January 2018

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January 2018

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CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2017 All rights reserved. Cover image © www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

AASP-MN BOARD MEMBERS

Vol. 26 No. 1

EXECUTIVE DIRECTOR’S MESSAGE ..................................................4 Reaching Your Goals in 2018

by Judell Anderson, AASP-MN Executive Director

LEGISLATIVE UPDATE ..................................................................5 Republican Leaders Find Compromise on Federal Tax Bill

by Kevin Walli, AASP-MN Lobbyist

2017 - 2018

LOCAL NEWS ............................................................................6 PRESIDENT Wayne Watson

NATIONAL NEWS ........................................................................8

IMMEDIATE PAST PRESIDENT Greg Kasel, AAM

INSURANCE I.Q. ........................................................................14 Safe Lifting in the Workplace

SECRETARY-TREASURER Will Latuff COLLISION DIVISION DIRECTOR Bruce Tschida, AAM MECHANICAL DIVISION DIRECTOR Carl Thomas ASSOCIATE DIVISION DIRECTOR Dave Bock

ANNUAL MEETING & LEADERSHIP CONFERENCE AGENDA. ........................15 COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) ......16 Perennial Problems

by Janet L. Keyes, MS, CIH and Carol A. Keyes, MA, CSP

DEG ESTIMATING TIPS..................................................................22 CASH IN ON YOUR MEMBERSHIP! ....................................................26

COLLISION SEAT Matthew Feehan

AASP-MN’s Insurance Program with United Fire Group

MECHANICAL SEATS Randy Notto, AAM Mars Overlee

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci | lea@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Kristen Dalli | kristen@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com www.grecopublishing.com

UPCOMING EVENTS January 9-10, 2018 RACE FOR AUTOMOTIVE EDUCATION Pro Kart Indoor Racing 14350 Rosemount Drive Burnsville, MN 55306

January 11, 2018 RACE FOR AUTOMOTIVE EDUCATION MB2 Racing 45 Northern Stacks Drive #200 Fridley, MN 55421

April 5, 2018 AASP-MN ANNUAL MEETING & LEADERSHIP CONFERENCE Doubletree Bloomington South 7800 Normandale Blvd.

Bloomington, MN 55439

ADVERTISERS’ INDEX aaa Auto Parts.................................................20 American Honda Motor Co. ............................OBC AmeriPride ....................................................25 Axalta Coating Systems ..................................IFC Buerkle Hyundai ............................................19 Choice Auto Rentals ......................................12 CBIZ................................................................17 Dentsmart ......................................................22 FinishMaster ..................................................25 Inver Grove Honda / Inver Grove Toyota ........23 Jack McClard ................................................24 Keystone ........................................................21 Libson Twin City ............................................4

AASP-MN News

Maplewood Toyota..........................................5 Meadowbrook.................................................17 Mills Parts Center ..........................................24 Morrie’s ........................................................9 Motorwerks BMW ..........................................IBC MPA ..............................................................11 PAM’s Auto ....................................................25 Proven Force ..................................................13 Rosedale Chevrolet ........................................19 Roseville Chrysler ..........................................24 Straight & Square ..........................................12 Toyota Group ..................................................18 United Fire Group............................................17

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EXECUTIVE DIRECTOR’S MESSAGE

Reaching Your Goals in 2018

by Judell Anderson, AASP-MN Executive Director

Does at least one of your New Year’s resolutions have something to do with improving your business? If you are a typical AASP-MN member, I’m betting it does. Here are some of my guesses about what those resolutions might be: • Reduce expenses • Make better hiring decisions • Improve your management skills • Be more informed about what’s happening in the industry • Give back to an industry that’s been so good to you

No matter which of these goals is on your list, AASPMN is here to help!

Our member benefit programs can help you save money on insurance, uniforms, credit card processing and more. The MNCARS campaign was created to increase the

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pool of qualified employees, and our auto employee assessment program is designed to help facilitate and improve your hiring decisions. Our training at events like Mech XChange, BS Sessions and the Annual Meeting & Leadership Conference will help you become a better manager, and learn from other professionals in the automotive service and collision repair industry. Our magazine, website and other communications will help you stay on top of industry news and trends. Your membership dollars – or, better yet, your volunteerism – provides resources that support and guide the association’s work to better the industry.

So, if you’re serious about achieving those resolutions, you know where to turn. AASP-MN is right here, ready and waiting to lend a helping hand.

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LEGISLATIVE UPDATE

Republican Leaders Find Compromise on Federal Tax Bill After a year of frustration with their legislative agenda, Congressional Republicans have finally reached an agreement to deliver on their campaign promise to significantly reform the Federal Tax Code. House and Senate leaders reached a compromise for a final tax reform package just before the Christmas break. This is the first major rewrite of the Tax Code since President Reagan’s second term.

The timeframe for assembling this year’s package was extremely short. Work started in September and is expected to wrap up in December.

When President Reagan took on the last major rewrite of the Tax Code, he announced his intention to do so in his January 1984 State of the Union Address, and signed the bill into law in October of 1986 – just short of three years after the process began. There are concerns about the speed at which Congress acted this time around. Because of the accelerated schedule, it is expected that there will be unintended consequences and Congress will need to make repairs for months, or even years, to come.

by Kevin Walli AASP-MN Lobbyist

One of the most significant issues with the tax reform package is its impact on the federal deficit. The tax cuts that have been proposed are coming without corresponding legislation that specifies spending decreases to offset the budget impact of tax cuts. The non-partisan Congressional Budget Office has indicated that the proposed tax package would add more than $1 trillion dollars to the federal deficit over the course of the next 10 years.

Congressional leaders, however, argue that the significant tax cuts will stimulate the economy, generating additional tax revenue, which will offset the budget impact of the tax cuts.

As this issue goes to press, some of the more significant proposed changes in the Tax Code for families and individuals include the following: • The compromise proposal would reduce the top tax rate to 37 percent – down from the 39.6 percent level proposed in the House Bill and 38.5 percent level in the Senate Bill. continued on pg. 20

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LOCAL NEWS

AASP-MN Announces 2018 Annual Meeting & Leadership Conference AASP-MN is pleased to announce its Annual Meeting and Leadership Conference will be held April 5th at the Doubletree by Hilton Bloomington – Minneapolis South, Bloomington, MN. The event, with the theme, “Focus on Success,” offers a line-up of seminars that are tailor-made for mechanical and collision repair shop owners and managers, and presented by some of the industry’s top trainers.

In addition to the impressive agenda of educational programming, there will be ample opportunity for attendees to network and socialize with their peers and industry vendors as they showcase new products and services during happy hour.

See page 15 for more details.

Meet this Year’s Leadership Conference Speakers

Terry Watson is the “AHA guy,” who makes people, companies and organizations, large and small, aware of the conscious and unconscious ways they sabotage their businesses and lives. He teaches audiences how to improve relationships with customers, close transactions more efficiently and work smarter, not harder. Terry will demonstrate “real world” tactics and provide ridiculously effective and easily-implementable strategies. Terry is also a recipient of the Certified Speaking Professional (CSP) designation from the National Speakers Association.

Mark Mayfield is known as “The Corporate Comedian” because he merged his corporate background as a lobbyist and his comedy background as a nightclub performer to create an extremely unique and comedic presentation style. Mark is author of the popular book, Mom’s Rules. He has received two degrees from Kansas State University and is a recipient of the Certified Speaking Professional (CSP) designation from the National Speakers Association, and has been inducted into its “Speaker Hall of Fame.”

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Dave Luehr has experienced the challenges of the independent collision repair shop owner for the past 30 years. With a background in lean operations, he has worked for several organizations, including Manheim and ABRA Auto Body & Glass. Dave has served as the Chair of Middle Tennessee’s I-CAR committee, taking an active role in the development of students. Dave uses his vast industry knowledge to help independent collision repair shop owners win by offering hope and practical advice as a coach, mentor and consultant.

Dan Gilley’s automotive career began when he bought, repaired and sold a 1959 Cadillac convertible at age 14. Since that time, he’s worked both as a technician and service advisor at several independent repair shops and new-car dealerships. Dan’s real skills were developed as an independent auto repair shop owner for over 20 years. Early in his career he became passionate about learning all he could about the auto repair business. He attended seminars, business schools and was a member of RLO’s Bottom-Line Impact Groups™. Dan joined the RLO team in March of 2003 as a full-time instructor and coach and became president and owner in 2010.

Watch for more information about the Annual Meeting and Leadership Conference as it becomes available on the AASP-MN website, aaspmn.org, and in future issues of AASP-MN News.

Industry Help Sought For 2018 SkillsUSA Competition AASP-MN is facilitating the automotive-related events at the upcoming SkillsUSA Competition on Saturday, March 24th. The collision repair contest will be held at South Central College in North Mankato and the automotive service contest will be held at Dunwoody College in Minneapolis. High school and technical college students from around the state will be on hand to demonstrate their skills in automotive service and collision repair.

Industry leaders play a vital role in the SkillsUSA program. You can help by doing any of the following: • Providing general guidance and help with automotive-related contests during the event • Volunteering to judge the contests

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• Encouraging high schools and community colleges in your area to get involved with the SkillsUSA contest • Promoting the event within the industry – and community!

The benefits you’ll receive for your involvement include: • Satisfaction of being able to provide assistance and encouragement to the next generation of automotive technicians • Increased exposure to potential employees for your shop • An expanded network of personal business contacts

If you are interested in helping out, please contact Judell Anderson at the AASP-MN office at (612) 623-1110.

Sponsorships Support AASP-MN’s Educational Programs & Other Activities in 2018 Sponsorships are now available for the 2018 AASP-MN Annual Meeting & Leadership Conference on April 5th at the Doubletree by Hilton Bloomington – Minneapolis South, and for other events throughout the year. Sponsorships help AASP-MN deliver the quality programs members expect, and keep registration fees affordable.

Sponsors are rewarded by increased visibility and recognition within the AASP-MN membership and industry at-large. It's a great way to stand out, expand marketing dollars and connect with the best shops in the industry.

To date, the following companies have made sponsorship commitments: Gold Sponsors Auto Value Parts Stores/Automotive Parts Headquarters CBIZ AiA Finishmaster Meadowbrook Insurance Group

2018 Membership Dues Are Due! Annual membership renewals for AASP-MN were mailed in December. By now, all AASP-MN members have received at least two membership renewal notices. If you have not paid your 2018 membership dues, PLEASE do so today.

Your timely payment will save AASP-MN the additional cost and time incurred with re-billing and other collection efforts. We’d much rather be dedicating those resources to programs and initiatives to improve the automotive service industry – and your business.

Thank you!

St. Paul Technician Named Master Collision Technician of the Year On December 14, Snap-On and the National Institute of Automotive Service Excellence (ASE) announced Bryce Anderson as the Master Collision and Refinish Technician of the Year.

As a technician for the last 33 years, Anderson is currently an ASE-certified tech working at AASP-MN member Raymond Auto Body in St. Paul, and was selected out of 47 individuals who were recognized at ASE’s fall Board of Governors meeting in November.

AASP-MN would like to congratulate Bryce on this outstanding accomplishment!

Silver Sponsors aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive PAM’s Auto, Inc. Suburban Chevrolet Bronze Sponsor Casualty Assurance of Chaska Other Sponsors Choice Auto Rental Dent Impressions Monroe, Moxness, Berg, P.A.

If you are interested in sponsoring any AASP-MN event in 2018, sponsorship information can be found on the association’s website (aaspmn.org) or by calling the office at 612-623-1110.

Happy New Year! from the AASP-MN Board of Directors & Staff

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NATIONAL NEWS

I-CAR® Launches National Scheduling Initiative to Streamline Course Accessibility for Students

After closely analyzing all live delivery courses, I-CAR® is introducing a new National Scheduling initiative to deliver its 22 live Professional Development Program™ (PDP) courses in every national market. These 22 live courses, along with a variety of additional online and virtual courses, form the foundation of I-CAR’s Gold Class® recognition.

When National Scheduling is launched in January 2018, course scheduling will transition from an on-demand basis to an established cadence. Courses will be offered based upon the specific demand in each market. Consequently, courses in larger markets will be offered several times annually, while those in rural markets will be offered on a more limited basis.

“I-CAR strongly encourages collision repair shops to begin looking at 2018 course schedules immediately in order to plan their future training needs,” said Nick Notte, I-CAR’s senior vice president - sales and marketing. “This is especially important for shops renewing their Gold Class recognition so that they can ensure the courses they need to satisfy Gold Class requirements are available to them prior to expiration of their Gold Class status.”

In conjunction with National Scheduling, more than 225 I-CAR Official Training Sites have been established, to date, at career and technical education schools, as well as at supplier locations, to facilitate delivery of I-CAR courses nationwide. These sites were selected based on their geographic location to serve students with consistent and convenient learning environments, while providing access to shop floors, parking and audio/visual equipment for instruction.

The move to a formal scheduling cadence will give shops a more effective way to plan and schedule their training. National Scheduling, in tandem with the establishment of I-CAR Official Training Sites, will also create a consistent and enhanced learning environment for students and teachers alike.

The 2018 course schedules continue to be posted. They can be viewed and course registrations made using the “Class Search” tool on the I-CAR homepage at www.i-car.com. For assistance or questions about National Scheduling, contact ICAR Customer Care at (800) ICAR-USA (422-7872).

U.S. Copyright Office Agrees to Extending DMCA Vehicle Repair Exemption

On October 26, the U.S. Copyright Office announced a proposal to renew an exemption for vehicle owners to perform maintenance and repairs without having to abide by the Digital Millennium Copyright Act’s (DMCA) prohibition against circumvention of technological measures that control access to copyrighted works. The proposal was in response to a petition filed by the Auto Care Association, Consumer Technology Association and iFixit, seeking continued access by individuals 8 | January 2018

to the software and systems embedded in modern motor vehicles.

The Copyright Office acknowledged that the petition “demonstrated the continuing need and justification for the exemption to prevent owners of motorized land vehicles from being adversely impacted in their ability to diagnose, repair and modify their vehicles as a result of TPMs (technological protection measures) that protect the copyrighted computer programs on the electronic control units (ECUs) that control the functioning of the vehicles.”

The Auto Care Association had also petitioned the Copyright Office to expand the exemption to include access to software that controls telematics and entertainment systems, to permit third parties to provide services on behalf of owners of motor vehicles, and to permit the development and sale of repair tools and solutions.

The Copyright Office acknowledged that a similar petition to include telematics and entertainment systems had been filed in 2015, but that the “record did not support extending the exemption to ECUs primarily designed for the control of telematics or entertainment systems.” The agency also expressed concern over whether expanding the exemption to third-party tool providers would violate the DMCA’s anti-trafficking prohibitions and requested public comment on whether the expansion of the exemption should be approved. The automakers have gone on record opposing any expansion of the exemption. The agency is seeking comment on whether an expanded exemption to cover additional repair and related activities should be adopted, including any proposed regulatory language.

Initial comments on the proposal were due by December 18, 2017. Final written response comments are due by February 12, 2018 for those in opposition to the exemption, and March 14, 2018 for those in support.

Auto Care Joins Supreme Court Brief Seeking to Overturn Prohibition on Sales Tax Collection for Online Purchases

The Auto Care Association recently joined nine other trade associations in signing an amicus brief supporting a petition before the U.S. Supreme Court by the state of South Dakota to address the issue of states collecting sales tax on internet purchases. The brief echoes the petitioner’s request that the court overturn the 1992 Quill v. North Dakota decision, which currently prevents states from charging sales tax on products purchased over the internet if the seller does not have a nexus, or sufficient physical presence, in the state.

The petition, filed by the attorney general for South Dakota, requests that the U.S. Supreme Court review a state Supreme Court decision, which denied the state the ability to enforce a 2016 law requiring state sales tax be collected on all internet sales.

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Among the concerns introduced in the associations’ brief, most had to do with real-world impacts on brick-and-mortar retail businesses due to the competitive disadvantage brought on by having to charge sales tax while their online competition does not. The practice of “showrooming,” where consumers check out products in stores and then purchase the product over the internet due to lower prices, was highlighted as an ongoing concern. The brief further cites the significant investment in employee training and showroom displays, taken advantage of by the consumer prior to them choosing to buy online.

www.langmarketing.com

Changing Foreign Vehicle Sales Mix

During the past five years, foreign nameplates have averaged nearly a 55 percent new car and light truck sales share in the U.S. Along with this dominant wave of foreign nameplate volume, changes have take place in the sales mix of foreign nameplates.

Six Major Takeaways: • Foreign nameplate light vehicles can be divided into four major groups: Japanese, German, Korean and other countries.

• Following the Great Recession of 2008, the new car and light truck market staged a historic sales recovery during 2011 to 2016. However, not all groups of foreign nameplates shared equally in this new car and light truck sales surge.

• Japanese nameplate cars and light trucks accounted for 69 percent of 2016 foreign nameplate sales, up from 66 percent of the 2011 market.

• German nameplates held steady at 15 percent of foreign nameplate new car and light truck sales between 2011 and 2016, but they added nearly 350 thousand in annual unit sales.

• Korean nameplate cars and light trucks fell from 17 percent to 14 percent of foreign nameplate light vehicle volume between 2011 and 2016. Nevertheless, Korean nameplate volume in 2016 was up 250,000 from five years earlier.

• The expanding share of foreign nameplates in the new car and light truck market, along with the continued on pg. 10

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NATIONAL NEWS continued from pg. 9

changing mix of foreign nameplate sales, indicates the growing vehicle diversity of product applications in the aftermarket as well as the impetus for nameplate specialization at the repair shop level.

Jobber Annual Sales

At mid-year 2016, there were approximately 345 fewer Jobber stores in the U.S. than five years earlier. Despite this outlet reduction, Jobbers increased their volume nearly five percent between 2011 and 2016.

Six Major Takeaways: • Automotive Jobbers are part of the Traditional distribution channel, buying from Warehouses, and other sources, and selling to product installers such as repair outlets and DIY-ers.

• The Jobber population has declined in the U.S. over the past five years, falling from nearly 17,350 outlets at mid-year 2011 to just under 17,000 Jobbers locations during 2016.

• Jobbers averaged 1 percent annual sales growth between 2011 and 2016, less than the 2.3 percent average annual product increase of the overall car and light truck aftermarket.

• Jobber sales growth over the past five years ranged from a 1.60 percent gain in 2015 to a much weaker 0.24 percent increase during 2012. Last year, Jobber sales rose 0.91 percent.

• Traditional Warehouses averaged 2.9 percent annual product growth between 2011 and 2016, much stronger than the annual rate of Jobber sales expansion. This reflects the increase of two-step distribution in the Traditional channel, wherein Warehouses sell direct to Installers, bypassing Jobbers.

• There are significant differences in Jobber sales performance by location. For example, Jobbers in rural and smaller towns tend to perform better than those in metropolitan areas. Jobbers in the Midwestern and southern states also generally outperform the sales growth of Jobbers in the Pacific region.

generated 60% of DIY product growth over the last five years (2011 to 2016).

Although DIY volume is increasing its share of domestic nameplate product sales, DIY volume is growing at a faster annual pace in the foreign nameplate aftermarket than it is for domestic nameplate cars and light trucks.

Airbags Boost Recycled Parts

As car and light truck scrappage has declined over the past few years as a percentage of vehicles on U.S. roads, there has been a shift in the age mix of cars and light trucks scrapped, from older to newer vehicles. This reflects the growing impact of airbag deployment on light vehicle scrappage.

The growing scrappage of younger cars and light trucks is boosting the availability of a growing variety of low-mileage recycled parts for sale in the aftermarket.

Foreign Vehicles Hit Miles Majority

Foreign nameplate cars and light trucks will generate a majority of light vehicle miles on U.S. roads for the first time during 2017. Despite representing approximately 46 percent of total cars and light trucks in operation, foreign nameplates will account for a majority of light vehicle 2017 mileage because of their concentration in vehicle age categories recording above-average annual miles."

With foreign nameplates capturing nearly of 55 percent of new light vehicle sales over the past seven years, they will increase their total light vehicle annual miles in the U.S., also boosting the size of the foreign nameplate light vehicle aftermarket.

Foreign nameplate light trucks are surging in their new car and light truck sales share and portion of light vehicles in operation (VIO). While domestic nameplates have traditionally accounted for the largest share of new light trucks, foreign nameplates are challenging their position, accounting for 44 percent of 2016 new light truck sales and an estimated 45 percent of the 2017 market.

Nameplate DIY Market Share

Domestic nameplate cars and light trucks account for a much larger share of Do-It-Yourself (DIY) product volume than foreign nameplate light vehicles. Domestic nameplates 10 | January 2018

Foreign Light Truck Product Impact

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INSURANCE I.Q.

Safe Lifting in the Workplace

Lifting is a common activity at the workplace, and it is often forgotten that there are proper techniques that need to be followed to avoid injury. In fact, lower back injuries are the most common workrelated injury cited by the Occupational Safety and Health Administration (OSHA).

Safe Lifting Basics Safe lifting plays an important role in keeping your back healthy and you safe.

There are safe lifting techniques that take strain off the lower back area: • Look over the load. Decide if you can handle it alone or if you need assistance. When in doubt, ask for help. Moving an object that is too heavy or bulky can cause severe injury.

• Clear away any potential obstacles before beginning to carry the object. Be mindful of other employees.

• Support and propel the object while carrying it; your grip should be firm. Carrying objects will change your balance. To keep this to a minimum, hold the load close to your body and to your normal center of gravity, between the legs and shoulders.

• Use good foot positioning and wear proper shoes. Many dress shoes and heels make lifting objects more dangerous. If you do not have adequate footwear, ask for assistance with the lift.

Your feet should be shoulder width apart, with one foot 14 | January 2018

•

•

• •

beside and the other foot behind the object that you are going to lift. This allows you to use the full power of your leg muscles.

Leg muscles are stronger and more powerful than back muscles, so let your legs do the work.

Bend your knees. Bending over at the waist to reach for the object you want to lift puts strain on your back, shoulder and neck muscles.

Keep your arms and elbows as close to your body as you can while lifting. If you have to stretch your arms out completely away from your body, ask for assistance with the lift.

Use your feet to change direction.

Don’t twist your body. Twisting adds to the stress of the lift and affects your balance.

To lower the object, bend your knees as you did to pick it up. To place the load on a cart or other elevated surface, set it on the edge and slide it into position.

Make sure your hands and feet are clear when lowering the load.

Team Lifting When another person is helping you lift, teamwork is very important. If you’re going to be carrying the load to another location, both of you should coordinate this prior to lifting the object. Check the route and clearance. One worker needs to be in a position to observe and direct the other. Lifting and lowering should be done in unison. Don’t let the load drop suddenly without warning your partner.

AASP-MN News

Your Safety is Important Proper lifting methods protect against injury and makes continued work much easier. It is important to think about what you are going to do before lifting an object – over time, these safe lifting techniques will become habit. Contact your supervisor if you have any questions or concerns regarding safe lifting techniques.

Safe lifting techniques are essential to your safety in the workplace. Carrying an object that is too heavy or bulky can cause severe injury. !

Brad Schmid CBIZ 222 S. 9th Street Minneapolis, MN 55402 P 763-549-2247 | F 763-549-2299 cbiz.com

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2018 Annual Meeting & Leadership Conference

Thursday, April 5

DoubleTree by Hilton Bloomington - Minneapolis South 7800 Normandale Blvd Bloomington, MN 8:00-9:30AM

9:45-11:30AM

11:30AM-1:30PM 2:00-4:00PM 2:00-4:00PM 2:00-4:00PM 4:00-6:00PM 6:00-8:30PM

AGENDA AT A GLANCE

Opening General Session: Bring It! Terry Watson, Easify, Inc. Roundtable Discussions (Three-30 minute sessions) Topics TBD, Facilitated by AASP-MN Member Experts Luncheon Keynote: Momma Told Me There’d be Days Like This Mark Mayfield, Mark Mayfield Presentations Can I Have a Side Order of Service With That? Creating Dazzling Customer Service, Mark Mayfield, Mark Mayfield Presentations The Secrets of America’s Greatest Body Shops – Six Secrets Revealed Dave Luehr, Elite Body Shop Solutions (Collision) Survive & Prosper in the Auto Repair Business Dan Gilley, RLO Training (Mechanical) Vendor Showcase & Social Hour Industry Dinner & Casino Royale

For additional information visit www.aaspmn.org or call the AASP-MN office at 612-623-1110.

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COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES

by Janet L. Keyes, MS, CIH and Carol A. Keyes, MA, CSP

Perennial Problems “It’s not painting – it’s priming. My sales rep said I could do it. I only use the three-ounce paint cups.”

“I don’t have much of a beard…and it’s only for hunting season.”

“The cord is there only because there’s no outlet there.”

“We have to keep that door locked because this is a bad neighborhood.”

“I’m not doing anything that’s an eye hazard right now.”

Fantasy and falsehoods, all of them.

We spend a lot of time trying to debunk quotes like those above. Let’s try one more time:

surfaces. Install sprinklers. Don’t allow any welding or grinding nearby. Not practical to do all that? Then use your spray booth.

Don’t spray outside of your booth If you’re routinely spraying a flammable material – paint, primer, poly - you can’t do it in the middle of the shop. It doesn’t matter that the EPA has said it’s okay if the paint cups are three ounces or less. OSHA and Fire Code regulations say you can’t. Those regulators don’t care if you use an aerosol can once in a while. But if you’re doing it every week, you’re creating a fire and health risk for your employees.

If you really want to spray in the middle of your shop, you can make that into a spray area. Get rid of all electrical equipment (outlets, lighting) within 20 feet. Add ventilation. Get rid of any hot

Painters need to shave – and not just for fit-testing If your painters need to wear tightfitting respirators, they need to wear them correctly all the time. Beards interfere with the fit. OSHA explicitly states that “the employer shall not permit respirators with tight-fitting face pieces to be worn by employees who have facial hair that comes between the sealing surface of the face piece and the face.”

It doesn’t matter if your painter can pass a fit test with that beard. It doesn’t matter that he shaved earlier in the week. If he has facial hair where the respirator seals to the face, you’re in violation of that OSHA standard. As the

employer, you are responsible for enforcing the safety rules. Don’t want to lose a good painter to facial hair? Buy him a loose-fitting powered air purifying respirator or install an airline system, and make sure he uses it.

Extension cords aren’t permanent Damaging an extension cord is a lot easier than damaging permanent wiring.

Because of that, extension cords are only for temporary use. If you can’t unplug it and put it away each day, it probably isn’t temporary use. Have an electrician install outlets instead. Or rearrange your shop so you don’t need the extension cord.

You can use extension cords for portable tools. But you need to make sure they’re designed for hard service (round cords) and in good condition. If they’re damaged, get rid of them. Don’t wrap them with electrical tape, as that doesn’t provide the same protection as the original cord jacket.

You can lock the door – from the outside If your shop catches on fire and people need to get out quickly, they’ll run for the exit. However, if the exit requires fumbling with a deadbolt or worse, removing a 2x4 across the door, the fire might catch up to them. Rules for exits came about because of tragedies – too many cases where people were not able to evacuate quickly enough. You might think that it’s simple to turn the knob and turn the deadbolt. If you’re panicking because the fire is at your heels, you aren’t continued on pg. 21

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AASP-MN News

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LEGISLATIVE UPDATE continued from pg. 5

• The mortgage interest deduction is retained – although the deduction is for mortgage interests for purchases up to $750,000 – down from the $1 million level which had been proposed in the earlier versions of the Tax Bill.

• Probably the most discussed provision in the Tax Bill is the corporate tax rate. The House and Senate have agreed to a corporate tax rate of 21 percent – down from 35 percent. It is this reduction of the corporate tax rate that has led Republican Leaders to project tremendous economic stimulus, which they claim will generate revenue to “pay for” the tax reductions.

• More significant for small businesses is the level of allowable deductions for businesses who have organized as “pass-through” companies.

The final negotiated agreement authorizes an increase in the deduction for pass-through entities to 23 percent — up from an earlier proposal allowing a 17 percent deduction. This was a key provision for at least two Republican Senators whose votes were necessary to approve the final bill, and send it on to President Trump.

If enacted, most of the provisions will take effect for the 2018 tax year, so the consequences of the changes won’t be felt until 2019. Over the coming weeks, we will undoubtedly learn more details about the tax package. We will try to feature those that have particular consequence for individuals and small businesses.

LIKE AASP-MN ON FACEBOOK! facebook.com/ aaspmn

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stopping to think. You need to get out now.

It’s a good idea to keep doors secured against uninvited visitors. The way to do that is by installing panic bars or latches that unlock when turned from the inside.

continued from pg. 16

Safety glass use is easier to enforce if everyone wears them It isn’t hard to establish a blanket “safety glasses all the time” rule. Lots of places do that. And if you do that, you won’t have to argue with employees about whether they just took their safety glasses off for a minute, or didn’t think they needed them when sanding, or would have used them when blowing off dust, but couldn’t find them.

Safety glasses don’t prevent all eye injuries. They don’t do a very good job in dusty conditions. A splash of wheel brightener can easily get past the lens and into your eyes, but they will keep that metal shard from penetrating into

your eyeball.

I can hear you now: “I’m only walking through the shop.” Even if you want to serve as a bad example, going bare-eyed is hazardous. Getting a quick look at a welding flash isn’t that bad if you’re wearing polycarbonate safety glasses. If you aren’t, hours later your eyes may feel like someone threw burning sand into them. And if a grinding wheel explodes or a wire brush sends out wires and you’re in the wrong spot, your eyes will suffer.

Most technicians got into the habit of wearing safety glasses when they were in school. They can get back into the habit.

Make these perennial problems part of your past. Spray in the booth.

Painters: Shave. Use extension cords for temporary power only. Make sure people can escape tragedies, and wear your safety glasses. Stay safe out there.

AASP-MN News

What’s Wrong with This Picture?

Answer: The exit is blocked.

C.H.E.S.S.

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ESTIMATING TIPS CCC: Sectioning time not listed in database - Some OEMs allow parts to be sectioned or partially replaced at a factory seam.

When this repair option is being considered and no section time is available, the user can still enter a manual entry labor time agreed upon by all parties and still show “section” on the estimate to be compliant. It is important to follow OEM procedures and bulletins posted by the OE to ensure proper repairs are being completed.

Mitchell: Destructive weld testing – Destructive weld testing is NOT INCLUDED in labor allowances in the Mitchell estimating system. The cost of materials associated with weld testing is also NOT INCLUDED in the labor guide. It’s important to follow OEM repair procedures and bulletins posted by the OEM and ICAR for proper welding machine settings, welding wire allowance and weld-thru primer allowances.

Visit oem1stop.com as well as rts.i-car.com for technical information.

Mitchell, CCC, Audatex: Drill holes for park sensors or lamps – When ordering replacement parts, the part may not come with the appropriate mounting holes for installing park sensors or side marker lights. If a part needs to be modified to accept PDC or side marker lamps, additional labor may be considered on the estimate/work order. If no time is available in the database for this labor, an on-the-spot evaluation should be considered with all parties involved. Some OEMs may have a specific tool to use for this procedure. Reference the OEM workshop manuals, EPC for

notes, procedures or supersede documents for the most current information available.

Mitchell states the following in the Labor General Information section: Rework parts to fit a particular year or model (example: Cutting holes for lamps, modifying a radiator support).

CCC/Motor states the following in the Labor Time Premise Does Not Include section: Drilling, modification or fabrication of mounting holes.

Audatex states the following in section 4-2 Labor Exclusions: Labor for drilling necessary to attach parts (e.g., ornamentation, antennas, etc.). (Standard Manual Entry M61 is available)

CCC: Assembly line components – In some situations, an OEM may substitute a “catalog service part” with an “assembly line component” that may include additional “service parts.”

An “assembly line component” may require removing “OEM spot welds” and separating a “sub-component (service part)” from the “main assembly.” This is considered a “partial part replacement.”

The time necessary to perform this type of operation should be estimated after an on-the-spot evaluation of the required procedure.

If the “assembly line component” is to be replaced as received, the time required for full replacement should be determined after an on-the-spot evaluation of required procedures.

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.You can view these tips and others on the DEG website,WWW.DEGWEB.ORG.

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Final preparations are being made for the 2018 Get to Know Your Neighborhood Auto Repair Pro™ campaign.

Do you want your shop’s name mentioned this year?

Get to Know Your Neighborhood Auto Repair Pro™ is a radio advertising campaign that promotes the primary benefits of doing business with independently-owned automotive repair shops.

It reminds consumers that independent shops are capable of performing virtually any repair or service that the dealer can, and also have a closer, more meaningful relationship with their customers and the community.

CELEBRATING 10 YEARS!

Tom Gleason

Watch for more details in the mail and in future issues of AASP-MN News.

Pro-Tech Auto & Truck Repair, Corcoran, MN

AASP-MN News

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WELCOME NEW MEMBERS:

DECEMBER 2017

Accessory Pro Warehouse Baxter

Christian Brothers Automotive Lakeville

Gunner’s Garage Automotive Service Apple Valley

Heppner’s Riverside Collision Hudson, WI

Joe’s Auto & Tire Winona

Pro Finishers Auto Body Prior Lake

recycleBMWS.com Medina

Thiele & Sons Automotive Sauk Rapids

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CASH IN ON YOUR MEMBERSHIP!

AASP-MN's Insurance Program with United Fire Group

Enjoy the benefits of UFG and AASP-MN’s insurance program

In July 2012, AASP-MN, in partnership with UFG, introduced an insurance program designed specifically for mechanical and collision repair shops. UFG and AASP-MN partnered to give AASP-MN members the following benefits: • A members-only insurance program recommended by AASP-MN • Preferred pricing • Broad coverage • All-lines safety group dividend In 2016, participating members received a one-percent return of their earned premium through the all-lines safety group dividend. This return totaled over $17,500.

This program has grown steadily since 2012. Currently, there are over 40 Minnesota agencies that have placed business in the program, ensuring AASP-MN members of local representation. There are 242 AASP-MN members insured in the program, with written premium approaching $2,500,000.

AASP-MN and UFG are proud to count CBIZ AiA of Minneapolis as a program partner. Please don’t hesitate to find out how your shop can participate in this unique insurance program for AASP-MN members.

Contact Brad Schmid at CBIZ AiA at 763-549-2247 or bschmid@cbizaia.com or, to find a UFG agent near you, visit www.ufgins.com and use the FIND AN AGENT tool at the top of the page.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group!

EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, longterm care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year.

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INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Peter Soderling 651-486-4866 Discounts on industrial supplies and paper products. Free, next-day delivery is available in the metro area. Shipping free to outstate members with $100 purchase.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / rmullen@netdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees.

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE and Teamworks products. For more information, contact Customer Service at 888-724-6742, ext.

6986.

CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aaiassessment.com / www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k).

Members who switch prior to June 30 will receive first month of payroll processing free.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

AASP-MN News

BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on oneon-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments.

Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.

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