JOEL GAUSTEN
MESSAGE PRESIDENT’S A NEW BEGINNING
If you would have told me four years ago that the cold call I was about to make to Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), would lead to where I am today, I would have said, “Don’t be ridiculous!” After 15 years in the automotive industry – and frustrated with things in my state and a particular piece of legislation – I reached out to WMABA Executive Director Jordan Hendler at Aaron’s suggestion. From there, it has been an exciting and eye-opening experience, leading me across the country to meet so many amazing passionate people in our industry.
Since bringing West Virginia into the association, I am now stepping into the presidential role for WMABA while working with my team at Greg Cline Automotive to run our shop in Winfield, WV. I take this position knowing that I’m stepping into the shoes of the legends who came before me. I am honored and humbled to be elected for this position, and I look forward to the coming year, which will hopefully be pandemic-free.
The last year and a half has been tough on us all. Between COVID-19 and political and social struggles, there has been no shortage of distractions. Since we were not able to meet in person, WMABA began monthly and sometimes weekly virtual “Watercooler chats,” allowing members to log into our Zoom meetings and discuss any issues they were facing or get answers to questions or concerns they had. For example, COVID-19-related cleaning was a huge concern at the beginning of the shutdown. We felt there was a huge potential for liability with the wording in estimate lines, and we at Greg Cline even questioned whether charging for this procedure was a smart move. WMABA set up a Zoom meeting focused on this specific topic and how shops can protect themselves while serving their customers. It really allowed us the ability to reach more than we could have through annual local meetings.
With the NORTHEAST® Automotive Services
Steven Krieps (304) 755-1146
skrieps@live.com
Show coming up September 10-12, our Collision Professional Repairer Education Program (Collision P.R.E.P.) series is loaded with new opportunities for education, conversation and networking. As always, we as an industry are facing a quickly changing landscape, and connection is a great way to stay on top of the issues. We held virtual Collision P.R.E.P. classes during what would have been the 2020 NORTHEAST show to continue to bring content to our members and those looking for help. To keep information flowing, we moved all the past virtual courses to an archive so members could reference these at any time (included in their membership fee). We worked to create a consumer education publication to show five simple but powerful things vehicle owners can do to stay in charge of their repairs, insurance claims and families’ safety.
I share these things not to plug our association but to show the hard work and commitment of the people behind the scenes who dedicate and donate their time. I have had the pleasure and honor to be involved in all these things – and many more over the past four years – and I believe I am only getting started. To the Board and its officers, thank you for the support and for accepting me into your family. To our executive director, thanks for sharing your wisdom and knowledge. To our exiting president, Torchy Chandler, thank you for your leadership and example.
There are many more who are owed a thank you, and I could write an entire magazine just for that, but this is not the Grammys. I look forward to the future and making a difference. H&D
RED ALERT: VIRGINIA OVERTIME WAGE ACT COMPLIANCE
I have another one for you. It’s like a roller coaster but without any of the fun parts. I just got punched in the face a few minutes before typing this message, and I promise the next issue will have more coverage on what I’ll now say is a “potential red alert.” (I hope we just give you an article about the sky NOT falling in the August issue.)
For those in Virginia, the Special Session of the Legislature passed an Overtime Wage Act (VOWA) that will change the dynamic of flat rate, commission or otherwise structured employees beginning July 1. It looks very similar to the California laws, and I’m diving into it immediately. I’m grateful we have a human resources attorney connection through our time at the Collision Industry Conference (CIC). I’m very hopeful our industry does continue to have a listed exemption (as previously known), but just in case, here’s what I’ve found thus far.
This bill (HB2063ER) fell totally under the radar of pretty much anyone in my circle or the news. A proactive shop called to ask about it, because he owns multiple potentially affected businesses that use flat rate hour commission structures for compensation. He’s understandably also caught completely off guard and wants to get in front of what will take place in just two weeks from this writing – if our industry doesn’t have the exemption we think.
As it looks, the VOWA may depart from the federal law in how the regular rate of pay is calculated and give a longer statute of limitations to bring potential claims and the possible damages available. In my brief investigation, I have found that it looks as though the overtime calculation will be 1/40 of ALL wages earned, hourly and other, as a total figure applied to any wage hour exceeding 40 in a workweek.
If the exemption for repairers using commission compensation still applies, the “minimum wage compensation” needs to be one and a half times minimum wage and then half of monies derived from commissions. The actual language is found in 29 U.S. Code § 207(i).
The new law for salaried and other regularly paid employees appears to remove employers’ ability from paying nonexempt employees a fixed salary to cover wages for hours exceeding 40 in a workweek – even if on a fluctuating workweek basis – then requiring instead an hourly rate calculation for overtime pay for even these employees.
Again, this is all new, so I’m waiting on the guidance related to the exemption for piece rate wages or clarification from the Department of Labor and Industry, as it is the overseeing entity – but cursory glance is not yielding much result with them.
I’m hopeful that WMABA will be able to demystify and clarify the changes this would entail. If you’re interested in the outcome of this research, I highly recommend calling and getting on the list of those we will call or email first!
We want to help you in any hurdle you face. Unfortunately, I find myself being smacked by this – as most of you reading may be as well!
Jordan Hendler
(804) 789-9649
jordanhendler@wmaba.com
EDITOR’S MESSAGE MORE THAN A JOB
“Writers write.”
That’s what my friend Mike Hudson, who worked all over the country as a journalist/author and newspaper publisher before his untimely passing in 2017, said to me on the phone one evening when we were comparing notes on our heavy work and deadline schedules. As busy and demanding as our respective professional lives were at the time, his simple words carried considerable weight. At the end of the day, journalism isn’t a job; it’s a way of life. We get our marching orders, and then we hit the road, attend key events and do the best we can to present what happened in a clear and informative way. It’s the same with collision repair: A car comes in, and then the best facilities out there pull OEM procedures, research everything that needs to be done to that vehicle and do everything
WMABA OFFICERS
PRESIDENT Steve Krieps skrieps@live.com 304-755-1146
VICE PRESIDENT Rodney Bolton rbolton@aacps.org 443-386-0086
TREASURER Kris Burton kris@rosslynautobody.com 703-820-1800
SECRETARY Phil Rice phil@ricewoods.com 540-846-6617
IMMEDIATE PAST PRESIDENT Torchy Chandler Torchy Chandler torchy.chandler@gmail.com 410-309-2242
BOARD OF DIRECTORS
Don Beaver (donbeaver3551@gmail.com) 443-235-6668
Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928
ADMINISTRATION
EXECUTIVE DIRECTOR
Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649
WMABA CORPORATE OFFICE
P.O. Box 3157 • Mechanicsville, VA 23116
Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283 John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375
Joel Gausten (973) 600-9288
joel@grecopublishing.com
they can to bring it back to pre-loss condition. We do what we do, and it’s our obligation to ensure that everything we produce meets the highest standard we’ve set for ourselves.
There is a frighteningly high number of shops not utilizing OEM repair information and procedures. In my mind, that’s no different than if I willingly skipped a major industry gathering and then wrote a story based on guessing what happened. After all, I’ve been doing this for 21 years now; I already know all about the Collision Industry Conference (CIC), right? Why actually be there? You’ve been working on cars for years; why look up the latest information on a brand you’ve already repaired hundreds of times? See how ridiculous that sounds?
If I fumbled through an article without doing the proper research, I could face everything from a libel suit to a loss of employment. If you fumble through a repair, someone could die. Why not just take the time to do it right?
Nobody is perfect, and genuine human errors happen from time to time. However, there is no excuse for ignorance or assuming you know everything. It’s not just a matter of doing your job; it’s a matter of pride and knowing you did the best you could with the obligations you get paid to fulfill. Why even get up in the morning if you’re not committed to doing that?
STAFF
PUBLISHER Thomas Greco thomas@grecopublishing.com
SALES DIRECTOR Alicia Figurelli alicia@grecopublishing.com
EDITORIAL DIRECTOR Joel Gausten joel@grecopublishing.com
EDITORIAL/CREATIVE Alana Bonillo COORDINATOR alana@grecopublishing.com
OFFICE MANAGER Donna Greco donna@grecopublishing.com
PRODUCTION Joe Greco COORDINATOR joe@grecopublishing.com
For Original BMW Parts, contact one of these
BMW of Silver Spring
3211 Automobile Blvd
Silver Spring, MD 20904
866-737-8937
Direct: 301-890-3015
Fax: 301-890-3748
bmwofsilverspring.com
Passport BMW
5000 Auth Way
Marlow Heights, MD 20746
301-423-0733
Fax: 301-423-2717
passportbmw com
Richmond BMW 8710 West Broad Street Richmond, VA 23294
800-237-0130
Direct: 804-527-6860
Fax: 804-965-6254
E-mail: tdailey@crownauto.com richmond-bmw com
BMW of Catonsville 6700 Baltimore National Pike Baltimore, MD 21228
855-996-2906
410-744-2000
Fax: 410-818-2600 bmwofcatonsville.com
LOCAL NEWS
OVERCOMING BARRIERS, CELEBRATING UNITY: A WMABA ANNUAL MEETING RECAP
On May 20, WMABA offered members their first taste of normalcy by hosting an in-person 2021 Annual Meeting and “Virtual Barriers” Panel Discussion. Held at Topgolf in Ashburn, VA, the first face-to-face association gathering since the start of the pandemic provided a fun-filled and informative evening that offered an overview of the critical issues impacting the industry and an in-depth discussion on what the future may hold.
The State of the Industry
The meeting kicked off with an extensive “state of the industry” report by WMABA Executive Director Jordan Hendler. Despite the obstacles of COVID-19, the association has maintained an active agenda of regional and countrywide industry engagement. In addition to continuing its national affiliation with the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP), WMABA has remained an avid supporter and sponsor of the Database Enhancement Gateway (DEG), a free online service funded by AASP and SCRS that addresses labor time issues and other discrepancies found in the products offered by the industry’s main Information Providers (IPs). The DEG receives Database Inquiries submitted by end-users and passes them along to the respective IP for review and resolution. More than 16,000 inquiries have been resolved through the system since its creation in 2007.
“I highly recommend going in there and just searching a couple of the cars they’re working on and see what comes up. If your tech comes to you and says, ‘There’s no way this [database time] is right,’ they’re probably right. The DEG should be on the desktop of everybody’s computer.”
WMABA has also maintained its involvement in the Collision Industry Conference (CIC), the quarterly inter-industry gathering that Hendler credits for enabling the association to voice ideas and
concerns directly to the decision makers leading today’s collision world.
“I’ve had numerous times when a WMABA member will give us something that I end up taking to that meeting and talking to the person in charge. Carriers and high-level vendors are there. If we want to see something get changed, that’s the place we can usually go to do it or at least use the Open Microphone sessions to our benefit.”
The next CIC, a hybrid event to accommodate attendees still experiencing travel restrictions, will be held both virtually over Zoom and in person on July 15 in Cleveland, OH.
With COVID-19 restrictions lessening, Hendler used her presentation to guide attendees toward matters of importance that may have been overlooked in recent months, namely the ever-increasing need for repairers to access and utilize OEMrecommended/required procedures. She noted that proper adherence to OEM guidelines has become especially critical in the age of electric vehicles (EVs), scanning, diagnostics, calibrations and telematics.
“Procedures are becoming mandatory. I think they should have been mandatory for years based on what I know, but following what the manufacturer says about how to fix the car is something we’re very slow [with] as an industry. I would never call anyone out on it, but I’ve gotten a lot of calls from shops where they’re asking me very specific questions about vehicles, and I’ll ask, ‘What does the procedure say?’ They’ll say, ‘But we’ve already fixed them for the last 20 years.’ I can’t respond to that!”
In addition to planning a Golf Outing for this October 13, WMABA is actively finalizing the latest installment of its Collision Professional Repairer Education Program (Collision P.R.E.P.), which will be held in person at the Alliance of Automotive Service Providers of New Jersey’s (AASP/NJ) NORTHEAST® Automotive Services
BY JOEL GAUSTEN
Show this September 10-12 at the Meadowlands Exposition Center in Secaucus, NJ. Collision P.R.E.P. will feature a lineup of local- and national-level speakers housed in the largest regional automotive trade show in the country.
WMABA launched this year’s Collision P.R.E.P. with “Economic Pricing Considerations for the Collision Industry 2021,” a special virtual course presented by Tim Ronak of AkzoNobel. The May 12 class was developed in response to the data WMABA collected during this year’s Labor Rate Survey, which identified confusion in the region in regard to the differences between a retail rate and a contractual one given to insurers.
“I would say that three out of 10 calls that we got the rate for told me, ‘Well, this is what the insurance company pays, so that’s my rate.’ There is nothing more depressing to me than that.”
Hendler encouraged members who missed the live virtual session to access it on-demand via the “MemberVault” on the Collision P.R.E.P. page on the WMABA website.
“There is an incredible amount of knowledge in that hour-and-ahalf session!” (Coverage of Ronak’s session begins on page 20 of this issue.)
Additionally, she expressed her appreciation for the industry vendors who attended the Annual Meeting and continue to support WMABA’s efforts.
“When I see you guys in here, I know that you reach hundreds of shops. You are able to be our voice for those people who don’t read emails or don’t read the magazine we send out every month.”
Virtual Barriers, Tangible Challenges
Later in the evening, WMABA welcomed Board members Steven Krieps (Greg Cline Automotive; Winstead, WV), Kris Burton (Rosslyn Auto Body; Alexandria, VA) and Phil Rice (Huber Collision; Fredericksburg, VA) for a special panel discussion that explored many
key issues that arose during COVID-19 and the trends and obstacles that are shaping the future of collision repair.
The discussion began with a recap of the pandemic’s initial impact on the auto body field and how facilities kept up with the rapid changes and demands of the era. Topics included mask wearing, applying disinfectant to vehicles, operating as an essential business during lockdown and employee buy-in in regard to new in-house and customer-service safety protocols.
Hendler urged members to continue to pay very close attention to the products they’re using to combat COVID-19, as many of them may not provide a suitable amount of protection.
“If you actually take the EPA number of some of these products and search it, it will show you the exact uses, the non-uses, the application that is intended for that product and the amount of time that it has to remain wet. If you’re using disinfectant wipes, [the surface] is supposed to be wet for 10 minutes to kill COVID-19. Everybody thinks, ‘Oh, you just wipe it down with a wipe and you’re solid, right?’ […] No, you actually haven’t broken the envelope of the virus; you’re just spreading it around more.”
Naturally, the pandemic has introduced new strains to shop/insurer relations, with the rise of virtual estimating in particular leading to frustration on the facility side.
“It’s been pretty miserable,” Krieps admitted. “It’s only been in the last, I think, four months that three or four of the carriers actually did start letting their people back out in the field.”
Krieps shared that one way he has attempted to address the matter is by directly involving the customer when certain carriers have demanded remote estimates.
“What I did for a little while was have the customer do [one carrier’s] ‘Virtual Assist;’ I’d say, ‘I’ll be right here if you need me.’ After about two or three minutes of going through it, they literally would hang up on the company and go, ‘No. Absolutely not.’ They would demand
WMABA ANNUAL MEETING RECAP
that somebody came out, and of course nobody would. At that point, it got to a two-tier manager, and it kind of alleviated some of the earlier hurdles you get with some of the lower-end people.”
“It’s a good idea to get the customer involved,” Burton commented. “The more customers are involved, the better it’s going to be.”
Increased consumer engagement has also been a considerable benefit to Rice’s operation.
“We have had to get customers involved more in the past three or four months than I can ever remember,” he said. “We’re literally saying to the customer, ‘We need you to contact your insurance company and say that this is unacceptable’ – whether it’s the processing of a total loss, the delay on a supplement or the going back and forth on a labor time […] It’s disheartening, because a customer comes in and says, ‘My insurance company is giving us four days on the rental car. Am I gonna be good?’ No.”
Speaking from the audience, newly elected WMABA Board member John Shoemaker (BASF) stressed that the time has come for repairers to consistently follow OEM procedures, particularly when it comes to calibrations. To illustrate his point, he relayed his recent experience at a shop that has a third-party drive-in estimating center.
“A Prius came in with bumper damage and slight damage to the quarter panel. [The estimator] took pictures of it, wrote the estimate, handed it back to the customer and told them they could leave. If you look at Toyota’s procedures, any time a Prius is hit, it is supposed to be deactivated immediately.”
The panel discussion concluded with an examination of the Right of Appraisal, also known as the Appraisal Clause. Krieps, who works as an independent appraiser through his other business, Collision Safety Consultants of West Virginia, explained the merits of the process as a consumer-protection tool.
“It is literally the only thing in a policy that adds any element of fairness. It gives a consumer a contractual policy right that if there’s a disagreement between them and their insurance company as to the amount of the loss or the actual cash value of the car, then each party on written demand […] has the right to hire their own independent appraiser.
“If the two appraisers can’t agree, they’ll pick a mutual third party to act as the umpire, or it could be a judge from basically where the policy’s written for,” he added. “An award letter signed by any two is binding.”
Despite the clear benefits of the Appraisal Clause, Hendler cautioned that the process is currently under attack legislatively by the insurance industry.
“Trust me when I say that the carriers are working very hard in this entire country to get rid of the Right of Appraisal.”
The Annual Meeting also featured the introduction of WMABA’s newly elected Board of Directors: President – Steven Krieps, Vice President – Rodney Bolton, Treasurer – Kris Burton, Secretary – Phil Rice, Immediate Past President – Torchy Chandler, Directors – Don Beaver, John Shoemaker, Bill Hawkins and Barry Dorn.
For information on upcoming WMABA events (including Collision P.R.E.P.), please visit wmaba.com. H&D
LINKS: The Database Enhancement Gateway: (DEG): degweb.org; Collision Industry Conference (CIC): ciclink.com; WMABA’s Collision P.R.E.P.: wmaba.com/collisionprep; AASP/NJ’s NORTHEAST® 2021 Automotive Services Show: aaspnjnortheast.com
LOCAL NEWS
COLLISION P.R.E.P. EXPLORES RATE PRICING CONSIDERATIONS
On May 12, WMABA kicked off its 2021 Collision Professional Repairer Education Program (Collision P.R.E.P.) with “Economic Pricing Considerations for the Collision Industry 2021,” the first of two virtual presentations in advance of the live Collision P.R.E.P. series taking place this September 10-12 at the Alliance of Automotive Service Providers of New Jersey’s (AASP/NJ) NORTHEAST® Automotive Services Show in Secaucus, NJ.
(The second virtual course, “Differentiating Labor Rates Based on Certification, Skillset, Tooling and Training” presented by Mark Olson of VECO Experts, will be covered in next month’s issue.)
Presented by AkzoNobel Senior Services Consultant Tim Ronak, the Zoom seminar was created by WMABA in conjunction with Ronak to address issues identified by the association while conducting its most recent Labor Rate Survey.
“It’s not just the results that people take issue or exception with, but there is definitely a lack of understanding about Labor Rates,” WMABA Executive Director Jordan Hendler shared during her introduction to course attendees. “I think there’s a big need for education around Labor Rates. Even though it’s the basis of everyone’s business, it is definitely something that doesn’t get enough attention or thought in many cases.
Many shops said, ‘That’s all the insurance company’s willing to pay, so that’s my rate.’”
Ronak began his course by offering an extensive overview of where the industry is in terms of capturing profit margins for the work they perform. Using data collected from AkzoNobel Acoat-selected facilities that participate in the company’s Performance Groups, he revealed findings showing trends between September 2013 and February 2020 and shared several program financial results. Notably, production labor gross profit is dramatically declining. According to Ronak’s figures, annual labor gross profit margin in early 2020 was down to 50-51
“
Winning the numbers game.
BY JOEL GAUSTEN
percent (true cost of labor) among Acoat facilities. In many cases, that labor gross profit percentage was actually below 50 percent since 2013, leading the way to a scenario where many technicians could make more money in labor wages than the businesses that employ them and assume the investment risk. Factors contributing to the trend include stagnant reimbursement rates, escalating healthcare expenses, rising payroll cost expectations due to decreasing technician availability and rising workers’ compensation rates. Despite this decrease in labor profit, shops are facing increased safety-related training costs in addition to the demands posed by technical training to keep pace with evolutions in automotive technology.
” The one thing that’s under the industry’s control is your labor. How you choose to price that is important to you. - Tim Ronak
“This is a huge problem, because of the advanced ADAS technology that’s come up, now it is creating an increased need for training investment,” Ronak shared, adding that he has seen many shops currently operating with “sub-50 percent” labor gross margins. “That means there are guys getting 46 to 48 percent labor gross profit after we factor in all the payroll taxes and healthcare costs.”
With margins so tight, he suggested that shops would do well to consider the financial impact of any specialized tools or equipment they introduce to their operations.
“If you buy a tool and can’t see a return on the investment on that within two to three years, I’m frankly telling you as a consultant – don’t buy it. So, if you’re going to go buy a scanning device and you can’t see a return on that device within two years, you are likely not charging enough to be able to get an adequate return. Perhaps you should instead simply reconsider the purchase and build a process to just capture a sublet on that service.”
In Ronak’s mind, shops’ ongoing financial success will depend on how they utilize labor as a true profit source.
“Many are looking at labor as sort of a
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LOCAL NEWS
loss leader, [thinking] they’re going to make money on parts, materials and sublet. Well, in the latest contracts I’ve seen, there’s now pressure on removing any sublet markup at all […] We’re seeing pressure being put on shifting operations from refinish into body to avoid paying material costs, so the material gross profit is under pressure. Parts have a whole set of circumstances around them [with others] trying to reduce the ability to be profitable. The one thing that’s under the industry’s control is your labor. How you choose to price that is important to you.”
In addition to focusing on how much they’re charging for their daily work, collision facilities also need to pay close attention to how consumers are paying for these services. Although customers often prefer to use credit cards to pay for repairs to receive points and rewards, Ronak cautioned that card transaction fees (which often range from two to four percent of the total amount) could have a greater impact on shops’ bottom lines than they may think. Keeping in mind that labor is most likely the only adjustable part of business that shops have, Ronak presented a variety of methods that facilities could use to adjust their rates to accommodate credit card surcharges while also maintaining gross profit. (Additionally, he suggested that shops review their agreements with insurance partners to determine if any restrictions exist in regard to addressing credit card surcharges on policyholders’ repairs.)
Above all, Ronak stressed the importance of shops’ providing their
retail Labor Rates – not wholesale negotiated rates offered to a third party – when asked to participate in any Labor Rate Survey.
“Our industry’s pricing has gotten so corrupted that I don’t even think people understand the trouble they’re putting themselves in when they complete a labor survey and use a contracted rate […] I don’t think some shops recognize the potential legal problems they may be creating for themselves regarding the Sherman and Clayton Acts.”
WMABA members are strongly urged to view the entire 95-minute “Economic Pricing Considerations for the Collision Industry 2021” video, which features insights and information beyond those featured in this article. The entire presentation is available on-demand in the “MemberVault” section of wmaba.com/collisionprep H&D
Executive Director’s Thoughts
I think all of our classes have been amazing, but if I were to say there’s “one class” you had to take if you’re only going to take one, please let it be this one! Tim did a fantastic job breaking down the components and considerations of a Labor Rate. He dove into areas I bet you’ve never even heard before! Go get it! - Jordan Hendler
LOCAL NEWS
VIRGINIA SKILLSUSA COMPETITION WINNERS ANNOUNCED
Despite having to change its traditional format to conform to COVID-19 safety guidelines, the SkillsUSA Virginia Virtual Leadership and Skills Championships recently succeeded in showcasing and celebrating some of the state’s finest young automotive talents. This year’s competition featured four auto-related categories that revealed the following winners:
Collision Repair Technology
Gold: Alejandro Galeno
(C.D. Hylton High School; Woodbridge)
Silver: Darien Cross (Triplett Business & Tech Institute; Mount Jackson)
Automotive Maintenance & Light Repair
Gold: Audi Quinteros
(C.D. Hylton High School; Woodbridge)
Silver: Logan Pugh (Salem High School; Salem)
Bronze: Rosa Falzarano (Triplett Business & Tech Institute; Mount Jackson)
Automotive Refinishing Technology
Gold: Alondra Leon (Triplett Business & Tech Institute; Mount Jackson)
Silver: Austin Barnes (Franklin County High School; Rocky Mount)
Automotive Service Technology
Gold: Erik Joya
(C.D. Hylton High School; Woodbridge)
Silver: Spencer Midkiff (Giles County Technology Center; Pearisburg)
Bronze: Andrew Harless (Salem High School; Salem)
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Gold winners in all categories moved on to compete in SkillsUSA’s National Leadership and Skills Conference, which was underway at press time.
SkillsUSA is a nonprofit partnership of education and industry founded in 1965 to strengthen the nation’s skilled workforce. Driven by employer demand, SkillsUSA helps students develop necessary personal and workplace skills along with technical skills grounded in academics. This framework empowers every student to succeed at work and in life while helping to close the skills gap in which millions of positions go unfilled. SkillsUSA has more than 372,000 annual members nationwide in high schools, middle schools and colleges, covering over 130 trade, technical and skilled service occupations. Additionally, it is recognized by the US Departments of Education and Labor as integral to career and technical education. SkillsUSA receives in-kind and financial support from more than 650 national partners and has served more than 13.6 million members. For more information, visit skillsusa.org. H&D
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PREVIEW
EVENTS FOR NORTHEAST 2021
WMABA’s Collision Professional Repairer Education Program (Collision P.R.E.P.) will head to the NORTHEAST® Automotive Services Show for a third year this September 10-12 at the Meadowlands Exposition Center in Secaucus, NJ. When WMABA first ventured outside of its region to partner with the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) to have this series at the show, it wasn’t clear what the outcome would be. Years later, Collision P.R.E.P. continues to be the premier educational event on the East Coast, providing the latest in innovation and adaptive learning opportunities.
Repairers have been cooped up in their four walls throughout the pandemic, and it is now time to plan the adventure to New Jersey for the information, learning and networking needed to have a forwardfacing collision repair business in 2021. It is more important than ever for repairers to sharpen themselves with knowledge and peer networks. It has become evident that the repairers finding the most success have strong inter-industry connections they can call upon for insight or advice.
the industry will be facing in the future. This one class will certainly pave the way for all others.
Gaining momentum and attention throughout the industry is the Right to Appraisal, otherwise known as the Appraisal Clause. A popular topic at the recent WMABA meeting, this will receive premier placement at Collision P.R.E.P. with a panel discussion to explore the topic and address the misconceptions and truths surrounding it. Capitalized by industry experts and leading repairers, this panel will detail their experiences and processes surrounding what was once considered the taboo part of an insurance policy. Many repairers are navigating the customer to research their options in this arena or providing them the resource library to do so, and it shows with the numerous additional repairers following suit.
Terlep (Auto Techcelerators, LLC)
Case in point: One of the many classes offered will look the future directly in the eye with Frank Terlep of Auto Techcelerators, LLC., who will walk participants through “Collision Repair 2035: Trends and Technologies That Will Force the Collision Industry to Reinvent Itself by 2035!” Speaking to much of this content at the latest Collision Industry Conference (CIC) meeting, Terlep was a clear choice for WMABA as a presenter to do a deep dive into what
Amid many other topics ranging from management to technical, Collision P.R.E.P. will be one of only a few live educational opportunities even offered to the industry in 2021. With much of the normal options being virtual, there are only a couple of groups even meeting in person before the year ends. WMABA and AASP/NJ are making every stride they can to bring the education and show forward.
With space and timing of regulations, moving NORTHEAST and Collision P.R.E.P. to September now allows more people the ability to come, especially with state guidance on events loosening. Having a full trade show of exhibitors enables vendor relations to accompany the education experience. H&D
PRESIDENT: Steven Krieps srkrieps@live.com 304-755-1146
OFFICERS
VICE PRESIDENT: Rodney Bolton rbolton@aacps.org 443-386-0066
TREASURER: Kris Burton kris@Rosslynautobody.com 703-820-1800
SECRETARY: Phil Rice phil@ricewoods.com 540-846-6617
PAST PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
BOARD OF DIRECTORS
Don Beaver don.beaver3551@gmail.com 443-235-6668
Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283
Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
John Shoemaker’ john.a.shoemaker@basf.com 248-763-4375
Position Your Business as a Leader!
Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment.
WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities.
Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level.
WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer & Dolly
EXECUTIVE DIRECTOR:
Jordan Hendler
jordanhendler@wmaba.com
804-789-9649
COVER STORY
Collision repair is an industry based on consumer protection – and it’s time for vehicle owners in the WMABA region to better understand that.
In an effort to inform and support Virginia, Maryland and West Virginia auto insurance policyholders, the association recently developed an eye-catching, consumer-facing brochure, 5 Ways to Keep Your Family Safer after an Accident, that can be distributed by WMABA member shops to the insureds who frequent their businesses. The five points included in the brochure and quoted as follows outline some of the greatest things that every motorist in America should keep in mind when having their vehicles repaired in 2021:
1. Choose Your Collision Repair Shop
The insurance company can’t require you to use a specific repair shop. Ask the shop about what current certifications they hold and verify them on the automaker or training entity website; check their online reviews. Ask the shop to show you – on their computer – the current OEM-documented repair procedures for the repair on your make and model. If they won’t do that, consider a shop that will.
2. Stay Proactively Involved in the Process
Set yourself as the primary contact in the process with the shop and ask them to contact you with any new information and status updates FIRST. Ask them to only act upon YOUR authorization, not that of the insurer.
3. Read Your Estimate Carefully, Ask Questions
Make sure you review your initial estimate and any supplemental estimates, and ask questions about anything you don’t understand. Look for terms like “OEM research,” “seatbelt inspection,” “scan” or “calibration;” if you don’t see these terms, that is a red flag.
4. Be Willing to Stand Firm
Insurance adjusters are not vehicle repair experts. It can be a frustrating process, but be willing to take the time and energy to fight for a SAFE repair on your vehicle according to OEM-documented repair procedures.
5. Take Action When It’s Not Right
If you have concerns about your vehicle after a repair, there are companies and shops that do post-repair inspections. If an insurer
Keeping
BY JOEL GAUSTEN
doesn’t abide by policy language or pushes unsafe repairs, file a complaint with your state Department of Insurance.
These five points were determined through extensive discussions between WMABA leadership and the members they serve.
“Our staff interviewed several Board and association members about what they wish all consumers could know prior to getting into an accident,” WMABA Executive Director Jordan Hendler explains. “This consumer document will likely reach them at the point they come to a repair facility, but at least they can be more informed about the process and parameters they can use to choose a repair shop. Our main goal is to empower them to know what to look for. It’s up to the shops to give this out or not, but our greatest hope is this will reach consumers prior to them needing one of our colleagues at all.”
Hendler is hopeful that widespread distribution of the brochure will offer something every person who’s involved in an accident truly wants most of all: Peace of mind.
“Many consumers feel helpless when a dispute happens between the repairer and insurer. Truly, repairers are not obligated to negotiate on their customers’ behalf; it’s just what has taken place for so long that we’ve forgotten that. Really, we should be presenting a documented repair plan with substantiation and letting them advocate for themselves and to the policy they purchased. That said, this is a way to show them, in an unbiased way, how they can research and appeal to their state Insurance Commissioner’s office with a complaint. We also feel that WMABA is a good resource for this same unbiased information and treatment.”
Consumers who receive 5 Ways to Keep Your Family Safer after an Accident will also have access to online links to consumer guides produced by the Virginia Bureau of Insurance and the Maryland Department of Insurance (including complaint instructions for both), the West Virginia Department of Insurance’s “Auto FAQs” page and consumer complaint forms for West Virginia and Washington, D.C. Due to the inclusion of these important links, the brochure is ideally delivered via email so that consumers may click directly on links to access resources. Of course, the publication also includes contact information for WMABA, which looks forward to serving as a direct resource for consumers in any issues they may encounter along the way.
“Sometimes, consumers just don’t know who to believe,” Hendler says. “They’ve got a broken vehicle – on top of potential personal injury issues – and they just can’t see through the web of things they just don’t understand. If we need to, we will reach out to our national contacts on their behalf to have a second look or appeal above a local or regional insurance manager for their direction. We’ve helped them to navigate through the complaint forms at times or just answer the questions that they have along the way. Many repair shops have done just the same. It’s not easy for insureds to dive into this world they know nothing about – with information that is foreign – to try and demand something they barely understand or have time to deal with.”
To receive a PDF file of 5 Ways to Keep Your Family Safer after an Accident to distribute to your customers, please visit wmaba.com or contact WMABA Executive Director Jordan Hendler at jordanhendler@wmaba.com or (804) 789-9649. H&D
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ADVICE
ASK MIKE:
Why
Do In-Person Events Matter?
This month, we “ASK MIKE” to share his thoughts on the industry’s return to normalcy with a slew of upcoming in-person events. We at Hammer & Dolly hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.
Hammer & Dolly: You were already on the road well before the industry started hosting in-person events again. How would you best characterize the mood in the industry right now based on what you’ve been seeing?
Mike Anderson: First of all, I think people are webinar-ed out. They are all ready for in-person meetings. I sent an email out to my 20 Group members, saying, ‘Hey, let’s think about having our next in-person meeting in July. How many of you guys would be interested in doing that?’ One guy sent me an email back that said, ‘I don’t care if you’re having that meeting in Iceland; I’d show up! Anything to get on a plane and get out of here!’
Do I think virtual meetings are going to disappear? No. If you have too much of anything, it’ll burn you out. We went from one extreme – meeting in person – to another extreme with everything being virtual. It has to be balanced. I think we’re going to see a blend of both in the future, but people are anxious to get back out there. Some people say, ‘Man, why do I have to go to church when I can watch it on TV?’ That person on TV can’t give you a hug. Not that you’re going to an industry event to get a hug, but there’s no replacement for human interaction.
Also, I feel that a lot of shops are really discouraged. Quite frankly, there are a lot of insurance carriers that are being very difficult and unreasonable. They’re saying, ‘Hey, I’m not going to pay for
such and such.’ There’s no negotiation or discussion. I think that’s frustrating a lot of shops right now. The people who are trying to do the right thing aren’t getting recognized or rewarded by anybody. I think people are ready to get back out there, network with their peers and say, ‘What are some solutions? What can I do to figure this out?’ That’s something else that will lead people to get back out to in-person meetings again.
H&D: Particularly in this part of the country, the NORTHEAST® Automotive Services Show is the first really big in-person event this year.
MA: I anticipate NORTHEAST having a record-breaking year. By then, everybody will be through their vaccines, be done with vacations and back to the grind. People are just so pent up with frustration and weariness from all the webinars and COVID-19 stuff that they are going to be glad to get out to an industry event. NORTHEAST is going to be huge this year. It’s a regional show, but it draws people from other states. It’s a big deal; it has a prominent presence in the industry. Some of the OEMs have had meetings and training in conjunction with the show. When you have the OEM align with a trade show, that’s when you know it’s achieved success.
H&D: The next Collision Industry Conference (CIC) is taking place later this month in a hybrid virtual/live setting. You’ve attended and spoken at those meetings in the past, and we both know CIC is a unique gathering for this industry. How would you describe CIC to someone who’s never attended before, and what do you get out of still participating in it after all these years?
MA: Obviously, networking is the first thing that comes to mind. The who’s who of industry decision makers attend CIC. There’s no event that’s held anywhere in the country that has that level of participation from that segment of our industry. There’s as much value during the breaks as there is during the actual meeting. It’s one place where
shops can have their voices heard. Those voices often get mentioned in the news coverage of those meetings, which means that voice reaches an even larger audience. It’s a chance to share your frustrations, concerns, thoughts or ideas. CIC is a place where innovation is born. Things come up there, and those things get put on the agenda and then move to committees that are dedicated to those topics. From there, those issues result in change. I recently read a great saying: ‘There are people who watch things happen in life, and there are people who make things happen in life.’ The people who attend CIC are the ones who make things happen.
H&D: Of course, the SEMA Show will be back as a live show this November.
MA: I’ve got to tell you; the biggest thing I’m excited about with SEMA this year is that the collision-specific vendors are all going to be in one area. When I go to SEMA, I’m never worried about what I see; I’m worried about what I didn’t see. The fact that everything is going to be housed in one area this year is so exciting. I can’t wait to go to SEMA for that reason alone. Kudos to [Executive Director] Aaron Schulenburg and the team at SCRS for how they’ve grown at SEMA.
H&D: We’re looking at the second half of the year now. All of these events will soon take place, and the industry is returning to a more regular schedule. As a consultant in this industry, what would you suggest as the best thing for a shop to keep in mind to make the best out of this transition back to normalcy?
MA: The decisions you make shouldn’t be shortsighted. It’s very easy to say, ‘You know what? I can’t attend SEMA or NORTHEAST because I’m busy trying to make up for last year.’ But with anything in life, you need a break. NORTHEAST and SEMA give you a chance to disconnect from your business, get out, get your brain cleared and figure out what
Do you have a question for Mike? Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue. The power of face-to-face connections.
you want to be working on in 2022. Being there will give you that mental break from your dayto-day activities and ask, ‘What’s coming down the pike? What do I need to prepare for? Who can I talk to and learn from?’ That’s the best part of being at industry shows.
NORTHEAST and SEMA have helped me tremendously. Right now, I’m living in my own bubble. All I know is what I know and what I hear from shops in my travels. But when I go to those events, it opens my eyes to things I’m not privy to or that weren’t even on my radar. I encourage everybody to show up. Instead of reading about what happened at NORTHEAST and SEMA, show up and be part of what happens. Be out there and let your voice be heard. Be ready to roll up your sleeves and get something done. If not that, show up and I’ll give you a hug! H&D
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).
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