AASP-MN News December 2015

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AASP-MN News

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. All rights reserved. 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. 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 2015 - 2016

Vol. 23 No. 12

ASSOCIATE DIVISION DIRECTOR’S MESSAGE ..........................................6 Private Equities in Our Industry

by Kevin Martin, AASP-MN Associate Division Director LEGISLATIVE UPDATE ......................................................................7 Preparations for 2016 Legislative Session

by Kevin Walli, AASP-MN Lobbyist

PRESIDENT Tom Gleason

LOCAL NEWS ................................................................................8

IMMEDIATE PAST PRESIDENT Jerald Stiele

D.E.G. ESTIMATING TIPS ..................................................................11

SECRETARY-TREASURER Greg Kasel, AAM

NATIONAL NEWS ............................................................................14

COLLISION DIVISION DIRECTOR Jim Siegfried, AAM MECHANICAL DIVISION DIRECTOR Wayne Watson

FEATURE ......................................................................................17 Repairer Driven: The Industry Hits SEMA 2015

by Joel Gausten

ASSOCIATE DIVISION DIRECTOR Kevin Martin

PARTNERS IN PREVENTION................................................................21 Grants Help Shops Clear the Air

COLLISION SEATS Joyce Weinhandl Will Latuff

CASH IN ON YOUR MEMBERSHIP!........................................................26 Wipers & Wipes, Inc.

MECHANICAL SEAT Mars Overlee

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM

UPCOMING EVENTS January 12&13, 2016 AASP-MN Race for Automotive Education ProKart Indoors Burnsville, MN

April 14, 2016 AASP-MN 2016 Leadership Conference Ramada Plaza Minneapolis, MN

OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

ADVERTISERS’ INDEX 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) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com)

AmeriPride ....................................................15 Assessment Associates Internatonal ............20 Axalta Coating Systems ................................OBC Blue Net ........................................................11 Buerkle Hyundai............................................7 Choice Auto Rentals......................................16 Dentsmart ....................................................6 Inver Grove Honda / Inver Grove Toyota........18 Jack McClard ................................................19 Keystone ......................................................18 Lowell’s PCE ................................................19 Maplewood Toyota ........................................20

Mercedes Benz of Maplewood ......................3 Mills Parts Center ........................................16 Morrie’s ........................................................9 Motorwerks BMW ........................................IBC Motorwerks Mini ..........................................IBC MPA..............................................................14-15 Rosedale Chevrolet ......................................15 Roseville Chrysler ........................................16 Straight & Square ........................................3 Toyota Group ................................................4 West Bend Insurance ....................................IFC

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ASSOCIATE DIVISION DIRECTOR’S MESSAGE

Private Equities in Our Industry

by Kevin Martin, AASP-MN Associate Division Director

The collision side of our industry continues to change at an amazing speed. This past year in Minnesota, PPG experienced this phenomenon up close as we witnessed several of our legacy members sell their businesses to much larger corporations with locations across the US. Does it seem the appetite is higher than ever to sell/buy businesses in our industry?

During NACE and again at SEMA, it was common to have or hear conversations regarding the involvement of private equities. While this is not a new term, it had minimal impact on our industry when I first got into the business. Approximately 10 years ago, the term started to become more of a household concept in the collision industry.

What exactly is private equity?

According to Wikipedia, the definition of private equity is “equity securities of companies that are not listed on a public exchange.� Transfer of private equity is strictly regulated, therefore any investor looking to sell his or her stake in a private company has to find a buyer in the absence of a marketplace. Returns on private equity generally occur in three ways: A merger or sale, an initial public offering or a recapitalization.

What drives a private equity firm? Those involved in the private equity business look for companies or industries that they believe have opportunities for significant returns on the investments they make into the business. This is done by improving operations, cutting costs and tightening management. They do not

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get involved in the daily operations of the business, but generally are on the board of the companies they invest in and provide advice and support in order to work on improving operations and financial management.

What is the goal of private equity companies? The goal is to sell off their investment at a substantial profit. Typically, they will sell off the company or companies they purchase three to seven years after the original investment, but it could be shorter or take longer depending on the strategic circumstances. The main sources of value are captured at the exit and include growing revenue substantially during the holding period, cutting costs and optimizing working capital - and therefore increasing Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA). Consequently, they are selling the company at a higher multiple than the original acquisition multiple, and paying down debt that was initially used to fund the transaction.

Private equity will continue to impact our industry for the foreseeable future. The impact provides both challenges as well as opportunities. Those that struggle with change will have a difficult time with our industry as it continues to evolve quickly under the increasing influence of private equities. There will, however, continue to be opportunities for those that embrace change and use it to their advantage.

AASP-MN News

LEGISLATIVE UPDATE

Preparations for 2016 Legislative Session As we are facing a very narrow window to move the AASP-MN insurer claims practices reforms, we need to follow a very precise course. The AASP-MN legislation would prevent “steering for estimates” and would prohibit insurers from mandating that shops “utilize specific vendors, distributors, manufacturers, suppliers, business platforms or internal processes in order to carry out vehicle repairs for an insured or claimant.” The best chance for success would be for us to reach a positive breakthrough in the House, where we have not yet had a hearing on our Bill.

In the coming weeks, we will be appealing to House Commerce Committee Chair Representative Joe Hoppe to

schedule a hearing on the Bill. Based on our meetings with House Committee Members in 2015, we believed we had the votes to pass the Bill through Committee.

Chair Hoppe was not convinced and wanted more discussion – and even compromise – between the repair shops and insurers.

We will be expected to invite more discussion with insurers, but while we welcome talks on these issues, we have also been careful to note that finding a “peace in the valley” amendment in this case may not be possible.

If we can’t find a compromise and can’t get our hearing in the House, we can still work on a Senate strategy to move the Bill by adding it to a larger, more

AASP-MN News

by Kevin Walli, AASP-MN Lobbyist

comprehensive Omnibus Bill. This is the approach that we took in 2015. The challenge, of course, comes back to reaching a consensus on the language in the Senate Omnibus Bill – which may be particularly difficult, as we have previously tried and failed to convince key House Members to advance our Bill.

AASP-MN has our work cut out for us. But we’ve had to work hard for many of our past successes at the Capitol and this is no different. Persistence has been a particular attribute of the AASP-MN Governmental and Regulatory Affairs Committee. We are still hopeful that our persistence will pay off in 2016.

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LOCAL NEWS

FOOSE VISITS CRYSTAL LAKE AUTOMOTIVE On October 15, the staff and crew at Crystal Lake Automotive in Lakeville received a visit from Chip Foose, owner and chief designer of Foose Design and star of TV’s Overhaulin’.

The appearance was sponsored by 3M, who partners with Foose to promote its line of automotive aftermarket products, including the company’s collision repair products and systems.

While at the shop, Foose gave a brief speech outlining his career and fielded questions from technicians and guests. He demonstrated 3M products and donated samples to the shop. Following, he interacted directly with technicians, posed for photos and sketched on toolboxes. One lucky employee received a personalized sketch of his own car.

Foose also visited the Newgate School in Minneapolis, where he performed demonstrations, interacted with students and signed autographs. Each student received a gift bag containing Cubitron II samples, Foose t-shirts, an autographed photo and 3M safety glasses and hearing protection.

Newgate is a nonprofit automotive technical school that provides free, handson training to unemployed and underemployed adults.

Foose capped off his stay in the Twin Chip Foose, star of TV’s Overhaulin’, Cities as the guest visits Crystal Lake Automotive and the speaker for 3M’s AuNewgate School while in the Twin tomotive Aftermarket Cities.

Fall United Way fundraising event.

WRITE IT RIGHT: ESTIMATING BEST PRACTICES SEMINAR A SELL-OUT! On November 10, over 80 industry professionals gathered at the Radisson Hotel in Roseville to hear industry expert Mike Anderson present “Write it Right: Estimating Best Practices.”

The seminar, a joint endeavor of AASP-MN and Axalta Coating Systems, was a great success, boasting a sold-out crowd.

The seminar provided attendees with information and resources to support and justify their position on what it takes to restore a vehicle back to its pre-accident condition. Highlights of the seminar included: • Tools to help identify not-included items, such as the DEG

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website, ASA Not-Included Guides and the SCRS Guide to Estimating; • How to use negotiation tools with insurers and get paid for hotly-contested items, such as prepping raw plastic, blend within a panel, “feather, prime and block,” masking operations, weld burn damage and more; • How to improve photo quality; • Utilization of Industry expert Mike Anderson, Collisionline notes; Advice, presented “Write It Right: Estimat• How to write a ing Best Practices” to over 80 industry damage analysis in professionals. conjunction with 100-percent disassembly; • The importance of OEM Information and where to find it; and • Key performance indicators (KPIs) to monitor when auditing the quality of estimates.

Attendees raved about Anderson’s presentation and the information provided in the seminar. One attendee stated, “Wow! Best instructor I’ve seen in 30 years!”

CALL FOR NOMINATIONS AASP-MN is looking for automotive industry professionals who are interested in advancing the industry by serving in leadership positions on the Association’s Board of Directors and Advisory Committees.

A number of positions will be open on the Collision, Mechanical and Associate Advisory Committees, as well as the Government and Regulatory Affairs Committee. There will also be two seats open on the AASP-MN Board of Directors, one collision and one mechanical.

If you have a personal interest or would like to nominate someone else, contact Nominating Committee Chair Jerald Stiele at (952) 935-7556 or the AASP-MN office at (612) 623-1110 or (800) 852-9071.

Nominations must be received by December 31.

DATES SET FOR 2016 AASP-MN RACE FOR AUTOMOTIVE EDUCATION FUNDRAISER The 14th annual AASP-MN Race for Automotive Education Fundraiser is planned for January 12 & 13, 2016, at ProKart Indoor Racing in Burnsville. AASP-MN members and other industry supporters will organize teams to compete in an evening of go-kart racing at speeds of up to 40 miles per hour! Teams pay an entry fee, with all proceeds directly benefiting automotive students and programs in Minnesota.

AASP-MN News

The AASP-MN Automotive Education Fund was established in 2002. The fund provides financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry.

Scholarship awards are a primary component of the AASP-MN Education Fund. To be eligible, students must be entering the second year of a two-year, NATEF-certified automotive program (collision or mechanical) in the state of Minnesota.

To date, nearly $176,000 in scholarships has been awarded to automotive students in Minnesota.

INTERNSHIP SITES NEEDED The collision repair faculty at Hennepin Technical College is seeking help from local area shops in providing students with internship opportunities. Internships expose students to meaningful learning experiences that enhance the relevance of what they are learning in the classroom, while advancing their technical competency.

The internship program runs from February 1 to March 25 for the Brooklyn Park campus and March 21 to May 13 for the Eden Prairie campus.

If you are interested in helping a student get some hands-on experience in a real-world environment while gaining a little extra help around your shop, contact Tom Phillips at the Brooklyn Park campus at tphillips@hennepintech.edu or (763) 488-2473, or Mike Netzinger at the Eden Prairie campus at mike.netzinger@hennepin tech.edu or (952) 995-1563.

Save the Date!

AASP-MN Annual Meeting & Leadership Conference “Lead the Way” April 14, 2016 Ramada Plaza 1330 Industrial Blvd.

Minneapolis, MN

Watch for details as they become available in future issues of AASP-MN News and on the Association’s website, www.aaspmn.org. continued on page 10

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LOCAL NEWS continued from page 9

HAVE A SAFE AND HAPPY HOLIDAY SEASON From the AASP-MN Board of Directors & Staff:

Tom Gleason, Pro-Tech Auto & Truck, President Greg Kasel, AAM, Downtown Tire & Auto, Secretary/Treasurer Jerald Stiele, Hopkins Auto Body, Immediate Past President Kevin Martin, PPG Industries, Associate Division Director Jim Siegfried, AAM, Crystal Lake Automotive, Collision Division Director Wayne Watson, Auto Works Diagnostics & Repair, Mechanical Division Director Joyce Weinhandl, Twin City Auto Body, Collision Seat Mars Overlee, Rick’s 36 Automotive Services, Mechanical Seat Will Latuff, Latuff Brothers, Collision Seat Judell Anderson, AAM, Executive Director Kevin Walli, Lobbyist Jodi Pillsbury, Office Manager Tom Kluver, Membership Coordinator

A FINAL SHOUT-OUT TO OUR 2015 SPONSORS Our sponsors play a key role in our organization. They support us. They provide us with extra resources that are needed to provide our members with

Gold Sponsors Autoshop Solutions Auto Value Parts Stores & APH Axalta Coating Systems PPG Automotive Finishes Silver Sponsors aaa Auto Parts CBIZ AIA Inver Grove Ford LKQ/Keystone Lowell’s Performance Coatings Meadowbrook Insurance Midwest Parts Advantage Mitchell International O’Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet United Fire Group

Program Sponsors 3M AASP National CARQUEST CBIZ AIA CBIZ Payroll Dent Impressions IDENTIFIX Robert Bosch, LLC Hospitality Sponsors AmeriPride Services BASF Automotive Refinish CCC Information Services Choice Auto Rental Dentsmart PDR Enterprise Rent-a-Car Net Driven Norton Abrasives Single Source Sherwin-Williams

Welcome New Members:

NOVEMBER 2015 Braith Auto Repair New Prague

Jake’s North Saint Paul Automotive No. St. Paul

Cartier Agency, Inc. Duluth

Little Falls Auto & Transmission Little Falls

Estify, Inc. Agoura Hills, CA

NStar Enterprises Corcoran Little Canada Lake Street - Minneapolis Portland Ave - Minneapolis Red Wing

Finishing Touch Car Care Oakdale Insurance Brokers of Minnesota/ Jensen Agency Minneapolis

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exceptional programs, education and networking opportunities. They help us to keep our costs and fees reasonable and affordable. Please acknowledge those companies that support us in this way.

AASP-MN News

St. Cloud Collision Center St. Cloud

ESTIMATING TIPS

Frequently Asked Questions in the Audatex P-Pages - Section 5-2 of the Audatex Database Reference Manual (DRM) covers 40 questions that you may find helpful during the estimate or repair process.

Does bagging and masking include the cost of the bag?

When you replace a floor pan with Audatex, does the paint labor allowance include both sides of the pan or just the part inside the trunk?

These are just a couple of questions that are answered in the FAQ section on pages 176-184 of the DRM. If you do not have a copy of the Audatex DRM, the MOTOR Guide to Estimating or Mitchell’s Collision Estimating Guide, you can visit the DEG website and links to all three estimating system resources can be located at the top of the page.

Bleeding The Coolant System - After the replacement of a coolant component, it may be necessary to remove the air from the system, or “bleed” the system. This process may require opening a valve to remove the air, similar to a brake caliper, but can require the more complex procedures of attaching a vacuum machine and/or following more detailed OEM-specific instructions. These procedures are “not included” operations with Audatex and Mitchell estimating software. This can be found in the procedural pages of both products, and also in DEG inquiries 3761 and 3851.

CCC/Motor states this operation is included with the labor of the coolant part. If you are replacing a coolant part in CCC and do not think the time is adequate to replace the part AND bleed the coolant system, you can submit an inquiry to the DEG to address with CCC. Submit an inquiry by visiting the DEG website and clicking the green arrow that says “Open Inquiry.”

Car Cover in CCC - During the repair process, it may be necessary to cover the vehicle to prevent overspray. This operation may be performed multiple times and each time you cover the vehicle and then remove the cover, a labor value of .2 is allowed.

CCC/Motor states in DEG inquiry number 8533: “Since the operation may be performed multiple times during any given repair process, an on-thespot evaluation is required to determine how many times this operation should be utilized, and who should perform this operation.”

Furthermore, the inquiry states that the material costs are not included in any labor time and that material costs and cost categories must be determined by the repair facility.

Not Every Chipguard is the Same in Audatex – Replacing the chipguard on a vehicle may require additional operations that are specific to a particular vehicle. Audatex states “Chipguard defines the Audatex automated formula for this operation. When special requirements are needed for a specific vehicle, the estimator would have to account for those requirements manually. No changes warranted at this time” (per DEG Inquiry 8452).

Collision Access – Before starting repairs or even starting the estimate, it may be necessary to cut, push or pull damaged panels to gain access to the vehicle. This is a not-included operation in all three estimating systems.

Audatex – Located on Page 54 under labor exclusions in the Database Reference Manual is: “Additional labor for removal of parts that have been impeded by crash damage (access labor). (Standard Manual Entry M62 is available.)”

CCC – Page G-10 of the Motor Guide to Estimating under “Time Does Not Include” states: “Cutting, pulling or pushing collision damaged parts for Access.”

Mitchell – Shown in Additions to Labor Times on page P3 of the Mitchell Estimating Guide is: “Access Time – Remove extensively damaged parts by cutting, pushing, pulling, etc.”

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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NATIONAL NEWS

AUTO CARE ASSOCIATION ALERTS HOUSE TO ANTICOMPETITIVE LANGUAGE IN VEHICLE SAFETY BILL On October 21, the House Commerce, Manufacturing and Trade Subcommittee of the Energy and Commerce Committee held a hearing on “Examining Ways to Improve Vehicle and Roadway Safety,” with the recently-released National Highway Traffic Safety Administration (NHTSA) discussion draft bill at the core of the session. The Auto Care Association is highly concerned with certain language in the draft legislation and has let the subcommittee know that the draft could have serious anticompetitive consequences for the independent auto care industry.

The discussion draft would create unprecedented rules at the National Highway Traffic Safety Administration (NHTSA) regarding hacking, cybersecurity and advanced vehicle technology. In a letter to the subcommittee, the Auto Care Association warned that provisions in the draft vehicle cybersecurity legislation could provide car companies with “full control over who has access to key vehicle systems, many of which are needed for repair purposes.” Specifically, the association called on the subcommittee to: 1. Redraft language that would make it “unlawful for any person to access, without authorization, an electronic control unit (ECU) or critical system of a motor vehicle, or other system containing driving data for such motor vehicle, either wirelessly or through a wired connection.”

2. Add mandatory seats for auto care industry representatives on the newly-proposed Advisory Committees that will be responsible for drafting best practices and security policies for vehicle cybersecurity issues and advanced vehicle technologies.

Although much of the hearing was informational in nature, Rep. Joe Kennedy (D-Mass.) did ask representatives from both the Federal Trade Commission and NHTSA how the legislation would impact the vehicle repair industry. Unfortunately, neither agency had a satisfactory response.

The Auto Care Association is asking all industry members with elected officials on the subcommittee (none of which are from Minnesota) to contact their representative and make known their concerns with the bill. While there is no word on when the subcommittee will take next steps on this legislation, it is critical that these members of Congress hear from constituents in the industry as soon as possible.

For questions or information on how to get involved, contact Sheila Andrews at sheila.andrews@autocare.org or David Pinkham at david.pinkham@autocare.org.

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CONSUMERS GRANTED EXEMPTION FOR VEHICLE MODIFICATION – REPAIR INDUSTRY EXCLUDED In late October, the US Copyright Office issued a final ruling that will allow vehicle owners to perform vehicle diagnosis, repair and modification without fear of prosecution under the Digital Millennium Copyright Act (DMCA).

The Copyright Office declined to provide exemption to third parties who diagnose, repair or modify a vehicle on behalf of the vehicle owner. The Copyright Office concluded that covering third parties would require a legislative amendment undertaken by Congress. Access to a vehicle’s telematics or entertainment system was also excluded from the exemption.

In a statement released in response to the publishing of the Final Rule, the Auto Care Association indicated it is very concerned that the Librarian of Congress did not permit shops to circumvent software on behalf of the car owner. The association states, “Clearly, car owners should have the ability to obtain the services of an independent shop for working on their car if they do not have the skills or equipment to properly perform the function themselves,” according to the association’s official comments. The Auto Care Association also takes issue with the decision to not include telematics or entertainment systems, which are key to ensuring the future of a competitive repair industry.

The association also said that the decision does not impact the Memorandum of Understanding signed by the Auto Care Association and the Coalition for Auto Repair Equality, which provides a commitment by the vehicle manufacturers to provide all information, tools and software to independent shops for the purposes of diagnosing and repairing the car.

The Specialty Equipment and Manufacturing Association (SEMA) also provided comments to the Copyright Office earlier this year seeking an exemption from the DMCA for vehicle owners.

“The issue of copyright affecting the ability to diagnose, repair and modify vehicles has come up recently due to the proliferation of advanced vehicle technology, specifically software, in modern vehicles,” said Chris Kersting, CEO and president of SEMA. “SEMA has always maintained that the right to access vehicle systems to utilize, maintain and upgrade vehicles is legal as fair use under copyright law, as are activities undertaken to achieve interoperability with aftermarket products.”

The DMCA was enacted in 1998 and prohibits the circumvention of measures put in place by a copyright owner to protect copyrighted works. The law also includes a provision allowing the Copyright Office to grant exemptions from this anti-circumvention provision, and the exemption for vehicle repair, diagnosis or modification by vehicle owners was granted under this provision.

AASP-MN News

LET US TURN THEM AROUND!

Contact AASP-MN News Sales Director Alicia Figurelli

973.667.6922 / ALICIA@GRECOPUBLISHING.COM

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FEATURE

by Joel Gausten

REPAIRER DRIVEN: The Industry Hits SEMA 2015

From high-quality training and seminars hosted by the Society of Collision Repair Specialists (SCRS) to breathtaking hot rods and celebrity appearances, the 2015 SEMA Show (November 3-6, Las Vegas Convention Center) offered automotive enthusiasts from around the world a trip they will never forget. Over 170,000 people hit the Show for the biggest event of its kind in America.

Considering all that SEMA 2015 had to offer, it comes as little surprise that the event boasted the strongest Collision Repair & Refinish vendor numbers yet. Longtime AASPMN member and SEMA veteran Peter Latuff (Latuff Brothers Auto Body) returned this year to once again promote Pro-Tech-It (protech-it.com), a magnetic car cover product developed at and marketed through his shop.

“The biggest thing is getting people to see [Pro-Tech-It] in person versus just in a magazine ad, where it’s kind of hard to comprehend what it can do,” says Latuff on exhibiting at SEMA. “If they see it demoed, they look at it and go ‘Why didn’t I think of that?’”

Looking back at another great year at the Convention Center, Latuff remains a fan of the SEMA experience.

“It’s grown every year; you can just see it,” he says. “From when we started to where we are now, I would say the collision booths have probably quadrupled...I can’t remember a year where we didn’t sell a lot of product.

It’s always been a very strong venue for us.”

American Honda Motor Co. took to SEMA to promote its new ProFirst Certified body shop program.

“The response to the ProFirst program has been good,” reported Gary Ledoux, Honda’s assistant national manager of collision parts marketing, from the Show floor. “I think most shops get it. I think most of them understand and realize that times are changing; things are changing in the industry, and they’ve got to change with it. And this is a good place to find change!”

Speaking from her company’s impressive booth in Central Hall, BASF Automotive Refinish Marketing Services Manager Tina Nelles had a fantastic time at the

Convention Center.

“This has been a really good week for BASF,” she said. “We had several different activities to expand our presence at SEMA. In addition to having our main BASF booth in Central Hall, we added a smaller booth in the Collision Repair section that focused on our value-added tools and services. We also partnered with Custom Upfits in the outdoor booth to perform spray demos. It has been an extremely busy week with a lot of excitement from all directions, allowing us a great deal of exposure. Our guests at the booth included Jay Leno, Chip Foose and Richard Petty; everyone had a lot of good conversations and a great time interacting with one another. We’re looking forward to seeing the positive results from our participation in this year’s Show.”

Away from the Show floor, representatives from AASP state affiliates from across the country gathered for the semi-annual AASP National Board meeting. AASP-MN Executive Director Judell Anderson and member delegates Bruce Tschida and Dan Sjolseth updated attendees on the Association’s many activities in recent months.

Sjolseth provided an overview of AASPMN’s ongoing work with Minnesota Careers in Automotive Repair and Service (MNCARS) in promoting the industry to students throughout the state, while Tschida discussed the Association’s efforts to establish laws that would prohibit an insurer from requiring a shop to use a specific vendor or manufacturer. In other AASP-MN news, the Association had a 94 percent retention rate for 2015, provided members with $78,000 in rebates through its uniform program with AmeriPride and gave $15,000 in scholarships to postsecondary mechanical and collision students over the last year.

In Anderson’s mind, AASP-MN gains a lot from having a consistent place at the table at AASP National Board meetings.

“It’s always valuable to learn about initiatives and strategies employed by other AASP affiliates,” she says. “Rarely is an industry issue unique to a particular area of the country, and there’s usually that ‘aha’ moment when you discover an idea or tactic

AASP-MN News

that you can put to the test when you return home.”

SEMA 2015 also demonstrated the ongoing relationship between AASP and the Society of Collision Repair Specialists (SCRS). In addition to working together in overseeing and promoting the Database Enhancement Gateway (DEG), AASP National served as one of the sponsors of SCRS’ Repairer Driven Education (RDE) Series at the Show.

“SCRS’ RDE Series does a great job of providing insight and context for the topics that are at the forefront of the collision repair industry,” Anderson says. “The sessions are

AASP-MN member Dan Sjolseth updated AASP delegates on workforce initiatives in Minnesota.

timely and relevant. Since so many AASP affiliates and members attend the SEMA show, it just makes sense to contribute towards education that enhances their experience and makes it even more valuable.”

SCRS Executive Director Aaron Schulenburg gave a guest presentation at the AASP National Board meeting to update affiliate representatives on the work the national groups are doing together via the Database Enhancement Gateway (DEG) to address database issues with the three major Information Providers. These endeavors include continued discussions with IPs on more global issues as well, with topics such as raw bumper prep, mechanical times inappropriately categorized as “body,” the ability to capture specialty Labor Rates (such as aluminum), welding times on advanced structures, and feather, prime and block. continued on page 19

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FEATURE

continued from pg. 17

Many of the more macro-level issues have been generated from feedback on the DEG “Top 10” list.

In addition to housing inter-industry collaboration, SEMA set the stage for some of the greatest support ever shown to the vocational education community. Congratulations are in order for Saint Cloud Technical & Community College, who was one of the schools awarded a 2015 $50,000 Makeover Grant from the Collision Repair Education Foundation (CREF) during a special ceremony on November 3. A Minnesota institution since 1948, the NATEF-certified school currently boasts an industry placement rate of more than 90 percent for students in its two-year auto program. But like many schools, Saint Cloud Technical & Community College often faces challenges in building the funds needed to keep things moving forward.

“It would have probably taken us five to 10 years to get the same amount of equipment that we’re getting in one boost,” says instructor Dale DeRung on receiving the Grant. “We’ve tried to stay as current as we can with what’s going on in the industry.

What this Grant is going to do for us, and what we asked for the money for, was to help us get equipment and tools that would allow us to start teaching aluminum repair.”

With the Collision Repair & Refinish section of the SEMA Show the strongest it has ever been, all signs point to an even greater journey next year. If you’ve been to the Show in recent years, you know how amazing it is. If you’ve never taken that flight to Vegas in early November, you know what to do in 2016.

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PARTNERS IN PREVENTION

GRANTS HELP SHOPS CLEAR THE AIR

This year, 13 small businesses in Minnesota got more than $500,000 from the Minnesota Pollution Control Agency (MPCA) to reduce their use of certain harmful chemicals. Twelve of the businesses were auto repair and body shops. Altogether, the businesses will eliminate almost seven tons of volatile organic compounds (VOCs) every year, equal to more than 13,000 cans of spray paint.

Rupp’s Unique Auto Body in Elbow Lake used the grant money to switch to water-based paint. Owner Ryan Rupp said there was a bit of a learning curve, but now that it’s installed, he likes it much better than the old solvent-based paints.

“It smells much better, unlike the solvents we’ve been using, which can give you a headache,” he says. “Another advantage is that it dries faster. With everyone wanting things faster and faster these days, that’s big for us. It actually does a better job and looks better than oil-based paint.”

Rupp estimates the new system will reduce VOC emissions at the shop by more than 40 percent.

Seven AASP-MN member shops used the grant money to convert their shops to waterborne paint: Heppner’s Auto Body in Inver Grove Heights and St. Paul, Master Collision Group in Bloomington, MCP Collision Center in Annandale, Oscar Auto Body in Minneapolis, Wayne’s Auto Body in Hastings and Windy’s Collision Center in St. Paul.

Dan Loock’s Automotive in Redwood Falls used a $6,000 grant to buy a solvent recycler and a water-based parts washer.

The recycler allows used solvents to be cleaned and reused onsite rather than disposed of. Both devices reduce the shop’s use of chemicals.

Loock is confident the new equipment will be better for his business.

“I was skeptical at first. After all, the products we’d been using worked,” he says. But he’s sold on the new products. The degreasing solution in the parts washer has the added benefit of

being much less harsh on exposed skin.

“When you are working with conventional solvents, it is hard on the hands,” he said. “They get dried out fast, especially in the winter.”

Loock says the MPCA grant was key to making the changes.

“These pieces of equipment are not cheap. Having the State help pay means getting something that wasn’t in my budget.”

The project saved Loock $3,550 per year, resulting in a fourmonth payback. Without the grant, it would be a two-year payback, making it an attractive choice for many shops. VOC emissions were reduced by 736 pounds per year, exceeding initial estimates.

Why do the grants focus on VOCs? VOCs come from vehicle exhaust and sources such as paint shops, printers and metal finishers. The VOCs combine with other chemicals and particles in the air and cook in the sun to form ground-level ozone, or smog. Ozone is unhealthy. It can cause chest pain, coughing, throat irritation and inflame the linings of the lungs.

“The challenges we face with air quality today are mainly from the smaller but numerous sources all around us,” said MPCA Commissioner John Linc Stine. “They form the biggest part of our air pollution and are largely unregulated, so voluntary actions are an important part of the solution. We’re glad to help get things rolling.”

Some areas of Minnesota are close to exceeding the EPA ozone limit. To cut ozone and smog, we need to cut VOCs. These grants are part of a larger partnership known as Clean Air Minnesota, which has reduced VOCs in Minnesota by more than 68 tons per year.

Visit the MPCA’s VOC reduction page at www.pca.state. mn.us/voc to see a video featuring grant recipient Oscar Auto Body or to sign up for the MPCA’s VOC email list – the best place to hear about grants that will be available soon.

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CASH IN ON YOUR MEMBERSHIP!

Wipers & Wipes, Inc. AASP-MN and Wipers & Wipes, Inc. are partnered to provide members with special pricing on items used in the shop every day.

Wipers & Wipes specializes in disposable toweling for the automotive service industry. With a modern, highly efficient warehouse, Wipers & Wipes is able to stock a large and diverse inventory to quickly meet the needs of its customers. Wipers & Wipes provides next-day service with free delivery in the sevencounty metro area and some surrounding cities. Daily shipping via UPS and Spee-Dee Service for outlying areas is also available. A $100 order qualifies for free freight.

• • • • • •

Skin soaps and lotions First aid products and equipment Food service equipment Cleaning chemicals, floor pads, sponges and abrasives Waste receptacles and can liners Facility maintenance and cleaning tools and supplies “We give fantastic service and sell quality products,” says the company’s owner, Dennis Julson.

For more information about this AASP-MN Member Benefit program, contact Wipers & Wipes at (651) 486-4866.

Wipers & Wipes can service you with a variety of items, including: • Paper toweling and dipensers • Mopping and floor maintenance equipment

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@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: Dennis Spindler 763-549-2238 / dspindler@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 CBIZ AIA Contact: Dennis Begley 763-549-2260 / dbegley@cbizaia.com CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term 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.

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

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Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 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: Margaret Klemmer 888-991-3449 / margaret@autoshopsolutions.com Autoshop Solutions offers custom website development, social media, SEO, PPC marketing and more, exclusively for the automotive industry. AASP-MN members receive a $500 discount off setup costs for services.

Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.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. For more information, contact Jon Napoli.

Stormlogix Contact: Paul Switzer 732-364-1156 / paul.switzer@stormlogix.com Stormlogix extends a discount on its website packages to AASP members. Costs can be spread out over 6 months.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.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.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline. One free call is extended to all first-time AASP-MN member callers.

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

SHOP SERVICES Summit eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / fterlep@summitsoftwaresolutions.com AASP members receive a 5% discount on all Summit eMarketing Sherpas’ services, including: website design and development, search engine optimization, email marketing and communication, online review and reputation management and social media marketing.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986.

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.

AASP-MN News

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.

CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com 180BIZ offers BUSINESS COACHING to AASP members at a steep 20% discount! One Eighty Business Solutions LLC (180BIZ) has been helping shop owners increase profits and car count while decreasing stress since 2003.

AASP members receive a discount on very affordable oneon-one coaching plans without long-term commitments and complicated contracts. 180BIZ offiers a risk-free trial of their services. To learn more, please call or email us, or visit our website.

REPLACEMENT PARTS Dorman Products Phone: 800-868-5777, ext. 5329 AASP members receive insider information, special access and other perks from Dorman Products, a leading supplier of dealer “exclusive” automotive replacement parts.

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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