AASP-MN News August 2022

August 2022

Protect Your Gold: Data Privacy Concerns and Solutions

PLUS:

• AWAIR Program Requirement • 2022 Minnesota I-CAR/SkillsUSA Fall Golf Event Announced

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CONTENTS Vol. 31 No. 8

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. ©2022 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.

EXECUTIVE DIRECTOR’S MESSAGE....................................4 More Questions Than Answers

by Linden Wicklund, AASP-MN Executive Director

AASP-MN BOARD MEMBERS

LEGISLATIVE UPDATE........................................................5

2022 - 2023

August Primaries Look to Shape General Election Races

PRESIDENT Jesse Jacobson

by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists

IMMEDIATE PAST PRESIDENT Tom Archambault

LOCAL NEWS.....................................................................6

SECRETARY-TREASURER Mike McLynn COLLISION DIVISION DIRECTOR Travis Doyle

NATIONAL NEWS ...............................................................8 D.E.G. ESTIMATING TIPS ....................................................10

MECHANICAL DIVISION DIRECTOR Jeremy Nordgren ASSOCIATE DIVISION DIRECTOR Paul Yager COLLISION SEATS Lee Schlosser Aaron Swanson MECHANICAL SEAT Dan Gleason

STAFF

EXECUTIVE DIRECTOR Linden Wicklund

COVER STORY ...................................................................14 Protect Your Gold: Data Privacy Concerns and Solutions

by Chasidy Rae Sisk INSURANCE I.Q. .................................................................18 CASH IN ON YOUR MEMBER BENEFITS! ............................22 AASP-MN and Fryberger, Buchanan, Smith & Frederick Law Firm Legal Services Program

OFFICE ADMINISTRATOR Jodi Pillsbury 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 & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com

ADVERTISERS’ INDEX A-Con Recycling........................................... 6

Morrie’s .......................................................... 17

Aramark.......................................................... 18

Proven Force........................................................ OBC

CBIZ.................................................................. 7

Reliable Automotive Equipment..............12-13

Dentsmart....................................................... 20

Rosedale Chevrolet...................................... 17

Inver Grove Honda/Inver Grove Toyota.... 5

Sherwin Williams........................................... IFC

Jack McClard................................................. 21

Spanesi............................................................ 23

Keystone......................................................... 11

Straight & Square....................................... 4, 19

Maplewood Toyota...................................... 19

Toyota Group................................................ 21

Mopar Group ................................................ 11

WIN.................................................................. 16

AASP-MN News

August 2022 | 3

EXECUTIVE DIRECTOR'S MESSAGE

More Questions Than Answers

By Linden Wicklund, AASP-MN Executive Director

After a little over six months on the job, I continue to have more questions than answers as I dig into the details of this association and the automotive service industry. The fun part is how the questions are becoming more nuanced as my layers of understanding deepen. For example, Q: “What are the top challenges in the industry?” A: “Finding skilled labor is big.” Well, this industry is not unique in the challenges of finding skilled labor and the available labor pool is shrinking, so, “What is different about this industry that helps cultivate new solutions?” Another example: Q: “What laws do shops cite in negotiating insurance payments or when deciding how to repair a vehicle?” A: “Here are the two statutes used most often…” To which I reply, there must be more.

This adventure of learning and exploration has been interesting and challenging. It requires curiosity and transparency as I evolve as a sought-out expert who doesn’t have all the answers. I love member calls where someone asks a question or states an issue that I don’t know of a solution to. Those calls set into motion the hunt for what information already exists, what is opinion versus fact versus applied practice and what knowledge or tools are missing.

My role is to go on that hunt so members don’t have to do that alone, and then to create resources that can be shared with the next person asking the same question and those

who haven’t even thought to ask the question. And then very often, to carry on the hunt for stronger solutions that meet the needs of a wider range of businesses even after the original inquiry is addressed.

The process of creating more questions than answers to illuminate new understanding is exactly the process the AASP-MN Board of Directors is about to embark on.

Over the next six months, the Board will be working with a consultant to create the next strategic plan. Creating such a plan that truly makes an impact in the future requires checking assumptions and scanning for information that might have once been passed by as irrelevant. For example, solutions for how to attract skilled labor during times when there were more than enough people entering the labor market look very different from solutions that are applicable today. Yesterday I heard someone remark, “We still have the same problems today that we had 45 years ago.” And while that is true, upon inspection, the situations in which the problems occur are wildly different. So, off on the adventure of learning the Board of Directors and I will go in good stewardship of this organization and on behalf of the industry-at-large.

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AASP-MN News

LEGISLATIVE UPDATE

August Primaries Look to Shape General Election Races

by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists

As August gets underway, the focus is shifting to primary elections. In part because of redistricting and an increase in political polarization, there are an unusually large number of primary challengers and races to watch in both political parties this summer. New political boundaries were drawn after the 2020 census and this November’s election will be the first to use them. These new maps pitted a number of sitting lawmakers into districts with one another, often with members of their own political party. This led to a number of retirements and even prompted several elected officials to move in order to avoid primary challenges with their colleagues.

Even with all that maneuvering, there are a number of districts with multiple candidates who will face off during the August primaries.

In the Senate, there are seven incumbent Republican lawmakers facing primary challengers, many of whom are new to politics and taking issue with what they perceive as incumbents being too moderate and willing to compromise with Democrats. These races are mainly in safe Republicans districts, so the winner of the primary is likely to win the November election as well.

The House also has a number of incumbent Democrats who are facing primary challengers for the right to move on to the November general election. Many of these new candidates are also dissatisfied with what they see as compromise with the Republican-led Senate.

If the majority of these challengers are successful and the House and Senate remain split between Democrats and Republicans, it could become increasingly difficult to pass legislation in a further polarized political climate.

While more and more deal-making lawmakers retire and are replaced by those less willing to compromise, the prospects for smooth governance could seem increasingly dim.

There has been some discussion about the potential for a special session to be called after the August primaries are over. While this still seems fairly unlikely, the notion would be that once the distraction and attention of the primaries is gone there may be a small window to call lawmakers back to pass some of the agreed to, but not enacted, bills from the end of the 2022 session, mainly the omnibus tax bill (which included some commercial

AASP-MN News

continued on pg. 20

August 2022 | 5

LOCAL NEWS AWAIR Program Required in Minnesota Automotive repair facilities in Minnesota are required to have A Workplace Accident and Injury Reduction (AWAIR) program. Any auto repair facility in Minnesota that does not have a current AWAIR program could be cited.

AASP-MN, in conjunction with its partner, Complete Health Environmental & Safety Services (CHESS), has developed “Creating an AWAIR Program for Your Shop.”

This online webinar helps members understand the components of an AWAIR program and helps them create an AWAIR program for their own facility. The cost for the webinar is $100 and it includes a 20-minute phone consultation with a representative from CHESS to review the program you draft for your company.

To view the C “ reating an AWAIR Program for Your Shop” webinar, visit elearning.autoserviceproviders.com.

Jamison Randall at jrandall@latuffbrothers.com or (651) 796-8003.

Do You Have a Superstar?

Do you have an employee you’d like to brag about in our monthly Facebook “Awesome Repair Pro” post?

If so, please submit their name, job title, photo, number of years they have been employed by you and a brief statement about what makes them an “Awesome Repair Pro,” and member of your team to aasp@aaspmn.org.

We’d love to feature our industry’s superstars!

Thank You 2022 Sponsors Platinum Sponsors LKQ Minnesota Lube-Tech

2022 Minnesota I-CAR/SkillsUSA Fall Golf Event Announced

Gold Sponsors AASP National Auto Value /APH CBIZ Elite Worldwide FinishMaster United Fire Group

The Minnesota I-CAR/SkillsUSA Volunteer Committee invites golfers and sponsors to Oak Glen Golf Club in Stillwater, Wednesday, September 21, for a fun-filled day of golf and networking. All proceeds from the event go toward scholarships for future technicians, equipment for technical colleges and other collision industry training needs in Minnesota. The event includes a four-person scramble, grilled dinner and awards reception following the golf. In addition, there will be complimentary refreshments on several holes around the course, as well as unique contests for prizes.

This is a great opportunity for vendors to market their business, products and/or services, while supporting the industry and enjoying a round of golf with industry leaders.

Registration and payment for golfers and/or sponsors can be found on the golf outing’s website, icargolf.com.

For more information, contact tournament director

Silver Sponsors 3M Automotive Aftermarket aaa Auto Parts Aramark Axalta Coating Systems Colonial Life Dentsmart PDR Enterprise Rent-a-Car Heartman Insurance NCS/Single Source O’Reilly Auto Parts PAM’s Auto PPG Sherwin-Williams Shop Monkey Suburban Chevrolet Bronze Sponsor C.H.E.S.S

Minnesota Careers in Auto Repair & Service (MNCARS)

BUMPERS PILING UP?

MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs and, ultimately, into industry workplaces.

Take advantage of the resources in the MotorMouth toolbox at carcareers.org/ motor-mouth. Get out and get active in your local community promoting industry careers!

6 | August 2022

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AASP-MN News

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AASP-MN News

August 2022 | 7

NATIONAL NEWS

www.langmarketing.com

EVs Lack Appeal for Many Pre-Owned Buyers Vehicles are one of the few consumer products that have a series of owners. It is not uncommon in the U.S. for a car or light truck to have five or more owners during its life on the road. However, not all vehicle owners are alike. Buyers of new all-electric vehicles often have environmental values, transportation needs and financial resources that differ significantly from those of preowned (used) vehicle buyers.

The operating characteristics and demands of today’s Battery Electric Vehicles (BEVs) will not satisfy the vehicle needs of a large share of buyers in the preowned market, who drive the vast majority of cars and light trucks in operation (VIO). This could result in Internal Combustion Engine (ICE) vehicles remaining on the road even longer than is common today, creating a golden age for the ICE aftermarket that will extend to 2040 and beyond.

All-Electric Vehicle Focus This iReport focuses on all-electric EVs, referred to as Battery Electric Vehicles (BEVs). In five years, BEVs will represent most new Electric Vehicle sales in the U.S. (BEVs and Hybrids).

Vehicle Lifecycles in the U.S. Vehicles are owned by a succession of consumers, who often differ significantly in their environmental values, transportation needs and financial resources.

Most cars and light trucks in the U.S. are not driven by their original buyers. Only a small portion of the U.S. adult population purchases new vehicles.

The average age of light vehicles in the U.S. now tops 12 years, older than the vehicle mix of most major countries, and approximately one-fifth of cars and light trucks on U.S. roads are at least 16 years old.

This means that for BEVs to be a viable alternative to ICE vehicles they must meet the needs of a series of buyers and not just those who buy them new.

New Vehicle Buyers Versus Used Buyers Electric vehicles (especially all-electric models) remain largely an “enthusiast” market in the U.S. and have yet to expand to the mainstream of new vehicle buyers.

Many buyers of new BEVs in the U.S. can overlook and overcome some of the operational limitations and unique characteristics of EVs at their present level of technology (and for some years to come).

Three of the most significant operational differences between BEV and ICE vehicles are driving range, charging (fueling) issues and reliable performance over a long number of years.

BEV Range Challenge Over three-quarters of today’s new BEV buyers purchase equipment to charge them at home. As BEVs move into the used market, many pre-owned buyers

8 | August 2022

will not be able to charge them at home (they live in an apartment, cannot afford the necessary equipment, etc.), so they will face more significant charging problems than today’s new EV buyers.

A nationwide network of fast-charging and convenient stations must be in place for pre-owned buyers to fully embrace all-electric EVs. This will become urgent when all-electric EVs grow in number and are more widely distributed across the U.S. The construction of an efficient and convenient charging infrastructure is a massive challenge and, most likely, will not be achieved for many years, even with strong government support.

The significance of this BEV charging problem is underscored by the fact that it is the top reason why approximately one-fifth of new BEV buyers cut the cord and return to ICE vehicles when making their next auto purchase. Several times this portion of EV buyers have probably experienced serious charging problems.

Aging Electric Vehicles It is still unclear how long BEV batteries, their most costly component, will last. Battery replacement can top $6,000. That cost would scrap a 12-year-old BEV, a sobering thought since the average age of vehicles on U.S. roads exceeds 12 years.

In addition to batteries, some BEVs (notably Tesla) can have other problems as they age. A Tesla often cannot operate if certain body parts are damaged, due to sensors and other electronic issues. Some of these debilitating damages can be relatively minor, such as a dented fender.

Since approximately 30 percent of vehicles on the road have unrepaired body damage, this could present a problem to owners of older BEVs, especially Teslas (which presently account for most of the BEVs on U.S. roads).

ICE Vehicles Will Gain Extended Life It will be a number of years before all-electric EVs evolve to the point where they can match ICE vehicles in all operating conditions: long-distance driving, extreme weather and off-road use, to name a few.

For these and other reasons, consumers are likely to keep ICE vehicles in operation for a longer time in the future than they do today.

EVs Will Not Work for Many Pre-Owned Buyers EVs will undoubtedly increase their share of new vehicle sales across the U.S., but it remains to be shown that EVs will satisfy the needs, values and resources of pre-owned vehicle buyers, who drive over 80 percent of the cars and light trucks on U.S. roads.

This likely will produce an ICE aftermarket Golden Age that will extend well past 2040.

Six Major Takeaways • Vehicles are one of the few consumer products that have a succession of owners, who can differ significantly in their environmental values, transportation needs and financial resources.

AASP-MN News

• Only a small portion of the U.S. adult population purchase new vehicles. Approximately 80 percent of cars and light trucks in the U.S are driven by preowned buyers. The age mix of vehicles in the U.S. is much older compared to most major countries, with one-fifth of vehicles at least 16 years old.

• Many U.S. buyers of new electric vehicles have environmental values, transportation needs and financial resources that enable them to overlook and overcome some of the operational limitations and characteristics of EVs at their present level of technological development.

• Used vehicle buyers are more likely to have range anxiety (a primary criticism of Electric Vehicles) than buyers of new BEVs. Many potential used-BEV buyers cannot charge at home (80 percent of new BEV buyers charge at home) and will face significant problems in conveniently and economically charging their BEVs. • It is unclear how long BEV batteries will last. Battery replacement can top $6,000 and could scrap a 12-year-old BEV. The average age of vehicles on U.S. roads tops 12 years and will likely climb higher.

• While all-electric EVs will increase their share of new vehicle sales across the U.S., it remains to be seen if they can satisfy the needs of pre-owned buyers, who drive approximately 80 percent of light vehicles on U.S. roads. This could lead to an ICE aftermarket Golden Age that will extend well past 2040.

Distribution Channel Whiplash in 2023 Lang Annual The negative impact of COVID-19 on the aftermarket during 2020 followed by the 2021 historic rebound of car and light truck product volume caused greater changes in the strength of the five major distribution channels than at any time in the past 60 years.

Five Major Distribution Channels Five major distribution channels supply the car and light truck U.S. aftermarket: Traditional, Integrated, Specialty, Import, and OE. The car and light truck aftermarket enjoyed an 8.7 percent surge in product volume during 2021, an extraordinary gain that was not distributed equally across the five major distribution channels.

Distribution Winners and Losers The 2020 onslaught of COVID-19, followed by last year’s rebound in aftermarket product volume, created massive shifts in product sales among the five major channels supplying the car and light truck aftermarket in the U.S. There were big winners and losers in product share in the light vehicle distribution system.

Two Independent (non-OE) channels dominated product share gains. The two other Independent (non-

OE) channels declined in product share and suffered an average 1.5 percent share decrease in 2021 compared to pre-COVID 2019 sales.

Integrated Channel Builds Share The Integrated channel is characterized by the ownership of products not changing hands from the time of purchase from Manufacturers to the point of ultimate consumption or sale to an Installer (service outlet or DIYer).

The Integrated channel added more than $4.0 billion in product volume during 2021, topping its 2019 performance by nearly $2.4 billion, at user-price.

The Integrated channel’s share growth was driven by the outstanding performances of several Retail Auto Parts chains and the continued growth of eCommerce, which surged by nearly one-fifth as reported in the 2023 Lang Aftermarket Annual.

Import Channel Gains The Import channel, distribution involving Import Warehouses and Import Jobbers, was the only other distribution channel achieving product share growth during 2021.

The reduction in Import channel volume during 2020 was surpassed by its nearly $1.0 billion surge in 2021 product sales.

This gain in Import channel volume expanded its product share, reflecting the superior aftermarket performance of foreign nameplates. See the 2023 Lang Aftermarket Annual for details on the surging foreign nameplate aftermarket.

Two Channels Declining in Strength The traditional channel, distribution involving traditional warehouses and jobbers, suffered a reduction in product volume between 2021 and 2019, despite nearly a $2.0 billion gain in 2021 product sales, at user-price.

Nevertheless, some traditional distributors gained volume over these two years as suppliers to eCommerce Sellers who do not inventory products (3P eCommerce transactions).

The Specialized channel, distribution focused on a limited range of products or involved in a sector of the aftermarket specializing in certain types of products, also suffered a loss in share and product volume during 2021 compared to 2019.

Independent Versus OE Distribution The OE channel substantially increased product volume during 2021, nearly reversing its decline in 2020 aftermarket sales caused by COVID-19. Nevertheless, the OE channel recorded a moderate decrease in product share during 2021 compared to 2019.

Aftermarket Impact Significant gains in the product shares of the Integrated and Import channels during 2021 led to an

AASP-MN News

continued on pg. 20

August 2022 | 9

ESTIMATING TIPS CCC/MOTOR: Refinish Labor vs Refinish Paint Supplies cccis.zendesk.com/hc/en-us/articles/360041991692Refinish-Labor-vs-Refinish-Paint-Supplies “Paint Labor is the work on the part of the technician.

It’s their hourly rate, plus whatever money the shop is making off of their labor. So, if the estimate grants four hours to paint a fender, the shop makes four times the hourly labor rate. The critical thing to note is that this is labor and therefore it is flexible. Simply put, if the shop agreed to only charge two hours to refinish that same fender but it still took four to do, the shop simply makes less money on the labor, but otherwise there is no loss.

Paint Supplies or Paint Materials is the actual paint, or clear coat, and the tapes, gap filling materials, masking paper, sandpaper, cleaners, thinners and additives used during the refinish process. For most of our customers, this is also billed by the hour. This is because one can reasonably describe the amount of materials used in any particular refinish job, and break it down to an hourly average. Needless to say, this is also usually inaccurate. In California, for example, estimators are required to itemize these materials per job. The critical thing to note here is that this describes hard goods. In the example above, where the shop agrees to only charge two hours to refinish the fender, they cannot afford to take the same hit to paint supplies. It will cost a fixed amount of materials to refinish the fender, and this is normally non-negotiable.”

CCC/MOTOR: Bumper Prompt Language Updates cccis.zendesk.com/hc/en-us/articles/5997834936596Bumper-Refinish-Prompt CCC has made recent updates regarding the language of the BUMPER PROMPT. A better understanding of the prompt and how to correctly select “YES” or “NO” can be found on the link provided. It is important to read the tutorial – as well as consulting with your paint manufacturer – for proper material and application process to ensure you are accurately capturing the proper paint labor and material when selecting “YES or NO.” Additionally, SCRS has a validated flow chart available at scrs.com/wp-content/uploads/2017/11/answering-the-cccone-bumper-refinish-prompt.pdf for additional reference regarding the Bumper Prompt.

All Three Systems: Prep for Refinish on Panels with Factory Applied Scratch Resistant Clear (nano clear) – DEG Inquiry 20445 response from CCC – “An on-the-spot evaluation must be performed and agreed upon by both estimators to apply an estimated work time for the additional prep that needs to be done for ceramic application coated vehicles.”

DEG Inquiry 20475 response from Audatex – “Any additional effort to prepare a factory painted panel for refinish that has Ceramic clear coat is NOT INCLUDED. The refinish time is strictly based on the new e-coat part preparation.”

DEG Inquiry 20476 response from Mitchell – “Our research shows that there are no additional processes used in the application of ceramic clear. In regards to ceramic clear being hard to sand, Mitchell refinish times are for new and undamaged parts so difficulty in sanding would not apply. The specific vehicle manufacturer recommendations should be followed when refinishing a vehicle that originally came with ceramic clear on it.”

CCC/MOTOR: Pressing Out Damaged Bearing Not Included – DEG Inquiry 20533 response from MOTOR states, “The estimated work time applied to the Hub & Bearing is for replacement of all new parts. The time to remove the Hub from the Bearing is not included and would be an on-the-spot evaluation. Pressing in the existing Hub into the new bearing would be an included operation.”

All Three Systems: Extending Clear to Nearest Break Point – Clear coat application to the nearest breaking point may be a necessary operation during vehicle refinish.

Additional labor for panel surface preparation and clear coat application is NOT INCLUDED in 2.5 when the threshold has already been met. Materials used in the preparation, masking and application of clear is NOT INCLUDED. The following links to all three information providers’ P Pages discuss the process…

CCC: help.cccis.com/webhelp/motor/gte/guide.htm# CLEAR_COAT_UNDAMAGED_PANEL.htm%3FTocPath%3D REFINISHING%2520PROCEDURES%7C_____9 Mitchell: static.mymitchell.com/static/webhelp/ppages/ ceg/1033/Content/ceg022812.htm Audatex, page 134: mysupportgarage.com/documents/ 10597/69591/Database+Reference+Manual+for+Cars+%26+ Light+Trucks Mitchell: Labor Notes – Some graphics may have additional “Labor Notes” that are specific to all the components in the graphics vs an individual part footnote or CEG. In the example found degweb.org/wp-content/ uploads/2022/07/Mit-footnote.png, the note indicates “All Parts in this section are included in overhaul unless noted otherwise.” Since bumper absorbers are commonly not included per the Mitchell CEG, the footnote showing the absorber as part of the bumper section is then considered included labor.

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, DEGWEB.ORG.

10 | August 2022

AASP-MN News

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AASP-MN News

August 2022 | 11

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COVER STORY

PROTECT YOUR GOLD:

DATA PRIVACY CONCERNS AND SOLUTIONS Social security numbers. Driver’s license numbers. Vehicle identification numbers. Personally identifiable information (PII) is “any information that permits the identity of an individual to be directly or indirectly inferred,” per the U.S. Department of Homeland Security’s website.

In today’s digital economy, PII is incredibly valuable – its position as such a prize has led to data being dubbed “the new gold.” This claim rings particularly true in the automotive industry where modern vehicles know more about their drivers than the vehicle owner knows about their car. But what happens to all this data when the vehicle is in the shop for service or repairs?

Many benefits come from the ever-increasing technology turning our transportation into supercomputers on wheels, such as improvements in safety and convenience factors, but those same systems that improve the driving experience also pose potential privacy hazards by collecting – and potentially sharing – vehicle data. What a scary thought!

What’s even more frightening? Shops commonly find that this data has been accessed without their knowledge or consent. Data pumps constantly monitor the estimate management standard (EMS) export routine, so once the data file is exported, those data pumps create and transmit copies of that exported data. Even once a shop stops using a specific resource, the data pump will continue to send information to that provider indefinitely until it is uninstalled…often without the shop realizing what’s happening.

So, who does collect that data, and why?

“Numerous entities collect data in the collision and auto claims industry, and in some cases, the data is collected as part of processing a collision repair or auto claim,” Jack Rozint (Mitchell International) stated.

“Some uses of data are for very specific purposes, and parts providers, rental companies, and information providers are examples of entities that collect data as part of the business services they provide. For example, car rental companies often collect data

14 | August 2022

from the estimate [related to] labor hours which helps them predict the length of the rental and allows for better management of the rental cycle for their insurance partners.

“Others, such as the vehicle history companies and data aggregators, specialize in data aggregation around the entire auto ownership lifecycle and will purchase data from entities within the collision and claims industry as well as from government agencies, tow companies and auto mechanical repair shops,” Rozint added. “These are just a few examples – and in fact, the data from a single estimate may wind up in dozens of databases. While the amount paid for one data transaction is small, the number of transactions can be very large, resulting in millions of dollars in data value per year.”

But how are these entities obtaining that valuable data?

“Estimate information – including personal identifiable information (PII) and repair data – is being shared with a vast number of industry trading partners a shop does business with,” explained Pete Tagliapietra (DATATOUCH, LLC). “A trading partner installs a software control, commonly referred to as a data pump, to monitor the estimate directories, and as it monitors those directories, it automatically grabs that EMS export to provide access for that trading partner to use that information to meet the needs of the collision repair shop. But it also grants them access to a voluminous amount of information in many situations.

“Imagine a number of tentacles reaching out to access this information in an uncontrolled way,” he continued. “They want certain information, but they’re not only receiving that manufacturer’s information; they’re getting all of the estimate information, allowing them to aggregate and repurpose it. Not everyone is doing this, but several companies are collecting data for various financial reasons. And shops have little to no control.”

A large part of the problem lies with the EMS export itself. Intended for internal use only, no security functions were built into the export. Yet, within the

AASP-MN News

by Chasidy Rae Sisk

repair shop space, data pumps have become the standard way for shops to communicate with their trading partners, and unfortunately, that has led to information misappropriation, according to Tagliapietra.

As an example, he described a situation in which a shop writes an estimate and repairs a e v hicle, and within a few days, information shows up in CARFAX. The shop has no clue how it got there, and the customer is angry that their information was shared.

AASP-MN News reached out to CARFAX to find out where it obtains data, how data can be obtained without permission from the consumer or the shops, and how shops can protect themselves from data being inadvertently shared.

“More than 13,0 data sources across North America report information to CARFAX,” CARFAX Public Relations Director Emilie o V ss responded to our query. “The details associated with a single event on a CARFAX report may have been reported to CARFAX from several sources, both public and private. CARFAX recognizes the importance of accurate information, and therefore, the Help Center on carfax.com provides an easy, quick way to send CARFAX requests for data e v rifications and corrections.”

“Based on my information and beliefs, CARFAX receives the a v st majority of its collision repair data from industry stakeholders who gather and sell this information to e v hicle history providers,” Tagliapietra dissented. “They’re being paid handsomely for data they acquired for free, but I don’t believe people are considering the consequences of how this data is being used. Consumers are typically unaware that their data has been shared until they decide to trade their car in and the dealer informs them that it was in an accident.”

Although consumers may be aware of data being shared in some cases, “more often, they are not aware of most data sharing that occurs,” Rozint acknowledged. “The consumer typically drops off the e v hicle to be repaired and doesn’t think much about the numerous transactions that will occur during the repair process in which their data might be shared. e Ev n the repairers are sometimes unaware of all the data sharing that might occur based on the work they are processing. With consumer data privacy

becoming a hot topic, it is much more important for repairers to understand all of the data sharing that is occurring and for them to secure the consumer’s written permission to share data as necessary to process the repair.”

For over 30 years, EMS has been used in hundreds of applications and services, and “it is reliable and has proven to work well for the industry,” Rozint insisted when questioned about why the industry has not yet converted to the Business Message Suite (BMS) standard. “If EMS were ended abruptly, numerous applications and services would immediately stop working and would require users to rekey data or switch applications. For many applications that use EMS, the data stays within the four walls of the business. In these internal business processes, there is low risk of data being compromised and so continued use of EMS does not present a problem.”

The problem arises in regard to data control… and the absence of any such control creates a lot of concern for many shops.

“Shops need an efficient way of sharing information with the trading partner, but they also need an effective solution that allows them to control and manage their information so they’ll know exactly what information is being sent and who receives it, plus they must be able to eliminate the customer’s and e v hicle’s PI,” Tagliapietra believes. “Shops are not informed that their information is being pulled and sold to benefit their partner’s business without their knowledge or consent, and I feel shops deserve the right to decide what information they want to share and who they want to share it with.”

Industry experts considered how shops can protect their data and provided some suggestions.

“First, understand local and federal laws related to data sharing,” Rozint offered. “Second, work to understand all of the data sharing that is occurring based on the applications and services being used in the business. This takes time but is critical to ensuring that your business is protected. Third, choose providers that have a written commitment to data protection and have a proven track record of both protecting data and not restricting users access to

AASP-MN News

continued on pg. 16

August 2022 | 15

COVER STORY continued from pg. 15

their own data. Most importantly, beware of software companies with large market share that promise to ‘protect’ your data by restricting access.

“Data is becoming the ‘gold’ in most industries with the data having value to multiple public and private entities years after the claim is settled and the repair is complete,” Rozint added. “If companies with large market share are the only ones with full access to all industry data, they can restrict competition and increase pricing while leaving repairers with no market alternatives. If any company in either your personal or professional life promises to ‘protect’ your data through a service that they control and in doing so will restrict your access to your own data, you may want to think very carefully about how much control you are relinquishing.”

While BMS offers some security because it allows for segmentation of data, EMS is “so entrenched in the industry that there’s no motivation to change,” according to Tagliapietra. “It’s up to the information providers and industry trading partners to stop supporting EMS. In the meantime, the majority of collision repair shops have no

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idea that there are data pumps running and collecting information for particular entities with whom they wouldn’t want to share their data. Those data pumps continue to operate ad finitum, and it’s hard to find, identify and uninstall illegitimate data pumps.

“It aggravates me that shops are giving data away – and have been for a long time,” Tagliapietra opined.

“There’s currently no foolproof way to prevent it, but we are hoping to change all that.”

Recognizing the industry’s need to control its data, Tagliapietra launched DATATOUCH, LLC earlier this year.

The software monitors EMS directories, identifies all the software controls copying exported EMS data and alerts the shop to any illegitimate data pumps that may be running.

“Shops have no option to inform them what data pumps are running on their computer systems and who installed them,” he emphasized. “They don’t have the ability to easily detect and remove them, and they’re unable to manage their information to avoid sharing PII, which is a huge issue. Shops must be able to control the amount of repair data that’s shared to minimize the overall exposure of that data being repurposed.”

DATATOUCH’s software is designed to locate illegal data pumps running in a shop’s environment, and if found, they can also license software to help them remove those data pumps. Additionally, shops will have the ability to configure each legitimate data pump to eliminate transferring PII. DATATOUCH expects to make its software available to the industry in the third quarter of 2022.

Tagliapietra reiterated the benefits of converting to BMS but noted, “Until that happens, DATATOUCH wants to provide the collision repair industry with the software tools to eliminate the unwitting data sharing that currently occurs and which has been happening for over 20 years. We haven’t seen any other options out there for shops, so we’re basically on the basement floor with this issue – and that means there’s nowhere to go but up.”

Data sharing presents many possibilities – both positive and negative – for shops to consider, and knowledge is power. At AASP-MN News, we want to empower our readers with the information you want most. What do you need to know? Reach out and let us know how we can help provide the knowledge you need!

AASP-MN News

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AASP-MN News

August 2022 | 17

INSURANCE I.Q.

Safety Meeting Basics According to the Occupational Safety and Health Administration (OSHA), one of the most effective ways to promote a safe working environment is to get involved in company safety meetings. Since safety is our top priority, we’ve gathered some tips to help you make the most out of our company safety meetings.

Why Safety Meetings These informal, brief meetings allow you the opportunity to stay up to date on potential workplace hazards and safe workplace practices, such as machinery use, tool handling, equipment use and safety-minded attitudes—basically anything that may contribute to accidents or illnesses in your workplace.

the best safety ideas come from workers just like you because you often know best what and where the dangers are.

• During safety meetings, if you have something to add, don’t hesitate to speak up.

Meeting Basics • Attending safety meetings is mandatory. Be aware of what days we hold meetings, and plan accordingly.

• Notice that spills aren’t being cleaned up properly or someone didn’t follow lockout/tagout procedures? We want to know so that we can cover the topic at a future safety meeting, and everyone can benefit.

• Always sign our safety meeting log – recordkeeping is an important part of our safety and compliance program.

• Already know the day’s topic?

Don’t tune out as you may have something valuable to add.

• Be an active participant. Some of

• If you have an idea for a safety topic, chances are others will find it of interest too. We encourage you to share the details with your supervisor or the safety committee.

• Have a question, like how to lift safely or read a Safety Data Sheet (SDS)? Don’t keep it to yourself there are no dumb questions when it comes to safety.

• Don’t know all of our safety policies? You can find more information on area bulletin boards or from a human resources representative.

• Want to nominate someone for a safety award? Contact your supervisor or safety committee with the details.

Regardless of your job title, working safely is everyone’s responsibility at AASP. For more information, contact Brad Schmid at bschmid@cbiz.com.

18 | August 2022

AASP-MN News

AASP-MN News

August 2022 | 19

NATIONAL NEWS continued from pg. 9

increase in the concentration of aftermarket distribution strength.

The moderate loss of product share suffered by the OE channel during 2021 compared to 2019 expanded the strength of Independent (non-OE) channels, reversing an aftermarket distribution trend of surging OE channel strength.

Six Major Takeaways • The distribution whiplash effect of the unprecedented downturn in 2020 aftermarket product volume caused by COVID-19, followed by the massive rebound in aftermarket sales last year caused significant changes in product sales and share among the five major channels supplying the car and light truck aftermarket in the U.S. • The Integrated and Import channels recorded a combined gain of nearly $5.0 billion between 2019 and 2021, withstanding the onslaught of COVID-19 and adding to their distribution strengths.

• The Integrated and Import channels expanded their share of product sales during the downturn in 2020

and rebound in 2021. The Integrated channel was boosted by the DIY sales growth of Retail Auto Parts chains during 2020 and 2021, along with the lively eCommerce sales surge. The import channel benefited from the strong aftermarket performance of foreign nameplate cars and light trucks.

• The two other Independent (non-OE) channels suffered from the market disruptions of COVID-19; the Traditional and Specialized channels each declined in product sales share during 2020 and 2021.

• Reversing a recent trend, the OE channel experienced a modest decline in its 2021 product share compared to 2019 as Independent (non-OE) channels increased their aftermarket product share over these two years.

• See the recently released 2023 Lang Aftermarket Annual packing 22 pages analyzing distribution channel performances in the car and light truck aftermarket for 2021, along with a ten-year history. The order form can be found here: files.constantcontact.com/042bce26001/4b4642ccf71b-4d83-95aa-634bf612abce.pdf?rdr=true.

LEGISLATIVE UPDATE continued from pg. 5

property tax reductions). Governor Walz has indicated a desire to call a special session, but only if the Senate is willing to agree to some parameters.

After the primary elections, AASP-MN will have a clearer picture of which lawmakers will be on the ballot in the fall and who we should prioritize our outreach to.

This will allow us to target messaging and help coordinate shop tours with members who live in key legislative districts.

20 | August 2022

Finally, AASP-MN continues to pursue a multipronged approach to addressing issues that are impacting members such as short-pay and prevailing rates. In addition to pursuing changes to the statutes during the legislative sessions, we continue to work with the Department of Commerce. Look for updates from our summer meeting with the Department of Commerce leadership where we will discuss some of the challenges members are facing and potential enforcement remedies.

AASP-MN News

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CASH IN ON YOUR MEMBERSHIP BENEFITS!

AASP-MN and Fryberger, Buchanan, Smith & Frederick Law Firm Legal Services Program The Fryberger law firm provides a full range of legal services for AASP-MN members. With 30 attorneys practicing in areas of specialization, the firm can help in nearly any situation. The firm’s home office is in Duluth, MN, and it also has satellite offices in St. Paul, MN and Superior, WI. Here’s how this valuable program works: • Calls can be placed via the firm’s toll-free number at (800) 496-6789.

• AASP-MN members must identify themselves as such and indicate that they are calling for a consultation under the AASP-MN Legal Services Program. Members should be prepared to articulate the facts underlying their legal question.

• The call will be referred to an attorney or paralegal that specializes in the area of law which is the subject of the call.

• Initial consultation and advice (not to exceed one halfhour of legal services) will be provided at no charge.

• If the issue cannot be resolved in the initial consultation and additional research or legal action is required, the member may elect to engage the services of Fryberger, Buchanan, Smith and Frederick. The firm will charge reasonable fees for such services.

AASP-MN is pleased to offer this valuable benefit to its members. During a day’s business, members come across relatively simple legal questions that, with access to affordable and appropriate expertise, are easily resolved. This program is designed to facilitate that process.

For more information, contact the AASP-MN office at (612) 623-1110 or (800) 852-9071 or email aasp@aaspmn.org.

AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward!

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

REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS CARS COOPERATIVE Contact: Stephenie Sheppard 405-547-4077 / membersupport@cars.coop Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available!

EMPLOYEE VOLUNTARY BENEFITS Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.coloniallife@gmail.com Dedicated representatives can help members transform their benefit package with competitive rates, value added services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility to create a plan to fit everyone’s needs.

UNIFORM & LINEN SUPPLIES Aramark Contact: Rick Krenz 612-616-5290 / krenz-richard@aramark.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/Aramark each year.

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.

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INFORMATION PROVIDERS Mitchell 1 Contact: Mitchell 1 Representative 888-724-6742 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collision-repair-shop-solutions/cloudestimating for more information.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. 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.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment.

AASP-MN News

BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars.

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).

SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/ Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance.

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING AUTOMOTIVE SEMINARS Contact: Tim Houghtaling 920-866-9813 / tim@automotiveseminars.com Discounted pricing to AASP-MN members on all liveonline events, as well as on-demand training videos.

Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The live-online events and ondemand training videos focus on automotive electronics and engine management systems and are written and created by some of the industry’s leading diagnostic technicians.

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

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

For more information, contact the AASP-MN Office at 612-623-1110 or aasp@aaspmn.org.

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