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MATTHEW CIASCHINI
The Fight for a Fair Labor Rate: Why Your Voice at the Advisory Board Matters
If you’re reading this, congratulations – you’re already ahead of most shop owners who still think the labor rate fairy is going to swoop in and magically fix Massachusetts’ broken system. (Spoiler alert: she’s not. She’s unionized and on strike.)
On a serious note, our industry is at a critical crossroads. As many of you know, the newly formed Auto Body Labor Rate Advisory Board (ABLRAB) has begun its work. (Learn all about it on page 16 of this issue.) This Board is tasked with something that should have been addressed decades ago: examining, evaluating and recommending a fair and sustainable labor reimbursement rate for collision repairs in Massachusetts.
For far too long, insurers have dictated rates that don’t even come close to keeping up with the real cost of doing business –never mind attracting new, qualified technicians into our field. The result? Shops struggling, talent shortages growing and a service that becomes harder and harder for consumers to access at the quality they deserve.
The Advisory Board is our opportunity to change that. But – and this is a big BUT – it will only succeed if we show up, speak up and stay in the fight.
What is the Auto Body Labor Rate Advisory Board?
The Board was created through legislative action to address the elephant in the repair bay: Massachusetts has had the lowest auto body labor reimbursement rate in the country for years. It exists to: Review the current labor rate. Evaluate market conditions, cost of living, technician wages, shop overhead and
consumer impacts. Recommend a new rate that reflects today’s reality – not 1988’s.
Now, before you get too excited, remember: the Board’s recommendations are just that – recommendations. They are not automatic mandates. Which means we have to fight to make sure the recommendations are strong, accurate and supported by undeniable facts. And we need to hold feet to the fire afterward to turn those recommendations into action.
Why Your Participation Matters – Seriously!
Here’s the deal: Insurers will be at every meeting. They will have their lawyers, their lobbyists, their “experts” who will somehow manage to argue that the cost of living in Massachusetts has magically not gone up since the Reagan administration.
We must be there to counter it – professionally and respectfully but with overwhelming facts and presence.
• Zoom meetings: If you can’t physically attend, get on Zoom. Having 100-plus industry people logged in sends a massive message that we are organized and watching.
• Public hearings: When we call for turnout, show up. We need bodies in the room. If the room is half empty, it sends a message we can’t afford to send.
This isn’t just about “someone else” doing the heavy lifting. If you’re not willing to defend your business, your employees and your future, why would anyone else?
continued on pg. 38
Membership Application 2025-2026
P.O. BOX 850210
Braintree, MA 02185
Phone: 617-574-0741
Email: admin@aaspma.org
Please complete this form and return to our office via mail or email with your dues payment. Thank You!
As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Healthcare plan � Dental, Vision plan � PFML savings program � Credit card processing � Grant writing/training � Google presence optimization � All benefits
PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION
Check# : ____________ (IF collision shop please note your RS# on the memo line of the check) OR
CC #: ______________ EXP: ________/___________ CID: _________________
Name On Card: _____________________________________________ Signature: _____
Check here � to opt out of auto renewal using this credit card information for future renewal
Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2025-2026 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership
REV 12/24 REFERRED BY _________________________ COMPANY_______________________________
SCAN TO JOIN!
Never Say “Never”
Fortunately, I was able to post bail just in time to write this month’s message. The incident? I tried to leave the local supermarket with a cart full of groceries, paying only what I had on me at the time. I politely explained that my paycheck was coming at the end of the month and that I’d pay the rest then. Still, they told me they “NEVER” let anyone leave without paying in full. Ridiculous, right?
That word – “never” – stuck with me.
It brought to mind the old phrase “Never say never,” first credited to Charles Dickens in his 1837 novel The Pickwick Papers. Dickens used it to encourage open-mindedness and to remind us that unexpected circumstances often demand flexible thinking. But as anyone in the collision repair industry knows, there are times when saying “never” is not only appropriate – it’s essential.
In fact, saying “never” to certain practices may be the very thing that protects your shop, your team and your reputation. When “never” becomes part of your standard operating procedures, it becomes a best business practice – one that can keep you out of legal trouble, financial distress and ethical gray areas.
For example, “never” start a job without proper authorization documentation – signed and on file. Too often, shops rush into repairs without getting this foundational piece in place, leaving themselves vulnerable to disputes and nonpayment.
Equally important, “never” begin work without verifying insurance coverage and confirming policy limits, especially on third-party claims. Without that clarity, you risk performing unreimbursed work – and possibly exceeding what the insurer is obligated to cover.
You should also “never” proceed with a repair, no matter
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how minor, without researching and printing the OEM repair procedures. These procedures can change frequently, sometimes daily, and ignoring them can expose you to serious liability. Just ask anyone familiar with the John Eagle case, where a shop was hit with a $40 million verdict for failing to follow OEM guidelines.
And while we’re on the topic of shortcuts – don’t take them. “Never” choose the easy way out. It will almost always come back to bite you. Whether it’s a hidden structural issue or an overlooked calibration, the results can be catastrophic – not only to your reputation but also to the safety of the people driving the vehicle you repaired. The late March Taylor of Auto Body Hawaii lived by a principle referred to in the Hawaiian language as Kina’ole – doing the right thing, the right way, at the right time, for the right reasons. It’s a standard we should all aspire to. “Never” waver from it.
“Never” return a vehicle to its owner, without making sure you’ve test-driven it and confirmed, in writing, that all systems are functioning properly. And when you hand the keys back, it should be accompanied by a detailed invoice that outlines every operation and part used. Even if you chose not to charge for a particular item, it should still be listed with a $0 value. Transparency builds trust – and protects you legally.
Documentation is your lifeline. “Never” release a vehicle without being in receipt of and auditing all supplemental paperwork. Without it, you can’t be sure all agreed-upon work was performed – or billed correctly. That’s money lost and accountability abandoned.
Dealing with insurance appraisers brings its own set of rules. “Never” allow an appraiser to inspect a vehicle on your property unless they present a valid MVDA license – on their person, as the law requires. Likewise, they should “never” be allowed to view a vehicle without having signed in upon entering your facility. See advisory ruling dated 10.21.1994 and 11.17.1994. And when they’re done, “Never” let them leave without providing signed field notes or the final version of the supplement. See 212 CMR 2.04 (1) (h). This protects you in the event of a future dispute. (Also see ADALB advisory ruling 2025-1 for details.)
One of the biggest mistakes you can make is releasing a vehicle without full payment or verifiable proof of payment. “Never” accept a Direction to Pay (DTP) as a form of payment – it is not a check. Don’t believe me? Try handing it to your bank on Thursday to cover Friday’s payroll. You’ll quickly learn that it’s as valuable as Monopoly money when it matters most.
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by Alana Quartuccio
AASP/MA Communicates Ways to “Thrive in 25”
Communication is a powerful tool. Building relationships and having the right conversations can lead to effective change.
This message was felt strongly during AASP/MA’s General Membership Meeting in April at the Doubletree Hilton Hotel in Westborough. Members of the Alliance gathered to socialize and connect, absorb the latest industry info and take part in conversations that are key toward combating everyday challenges.
This was the first membership meeting since AASP/MA’s recent victory in their ongoing battle to fight labor rate suppression. Lobbyist Guy Glodis commended the Alliance for a job well done, as he gave an update on the formation of the Auto Body Labor Rate Advisory Board (ABLRAB) which began meeting virtually in April (see recap on page 16) and was expected to host its first in-person meeting in June to begin their study and review in order to make recommendations to the Division of Insurance (DOI) for a fair and equitable labor rate.
“It’s the first victory we’ve had in 20 years. It was a difficult fight; there are a lot of people on the other side constantly trying to stop us by putting out landmines,” relayed Glodis. Getting their voices heard by local legislators was a big part in landing this victory, therefore continuing communication with their local legislators is encouraged, especially as AASP/ MA works to draw further support for their latest legislative push to move the Auto Damage Appraisers Licensing Board (ADALB) from the DOI to the Division of Occupational Licensure.
AASP/MA Executive Director Lucky Papageorg reminded members that they are business owners in the districts these legislators represent; therefore, “your name means 10 times more to them,” and they will welcome the communication.
One of the most talked about breakthroughs in recent times is the Society of Collision Repair Specialists’ (SCRS) blend study, which shed light on something collision repairers everywhere already knew – that blending takes much longer than full refinish. SCRS Executive Director Aaron Schulenburg briefed the audience about what initially led to the study and what actions have since been taken by the information providers (IPs) who have moved away from the long outdated “discounted 50 percent” measurement in favor of on-the-spot evaluations.
The study itself involved participation from the five major paint manufacturers. SCRS brought in DEKRA – the world’s largest testing, inspection and certification company – to audit the process. A comparative analysis was done based on 100 percent of full refinish using solid white, metallic silver and tricoat which resulted in finding that it takes on average 131.59 percent more time to blend. “This is the data we presented to the industry. It’s good data to use in conversation,” Schulenburg pointed out, emphasizing that it is fuel for the body shop to use effectively in order to get fairly reimbursed.
about the complexity of blending. If one is able to explain the care and prep that is involved in order to avoid visible panels, “it’s quite a different conversation than saying ‘the study says.’”
Training and communicating are key in helping shops get accurate pay for blending. It’s a practice a shop should adopt and make their own. “Make these conversations part of your process. Get people to buy into it as part of your facility. They will understand and reference it.”
“Lean on your refinishing supply companies companies,” Schulenburg suggested. “They have tons of documentation and information and were involved in the study. It’s a matter of employing all of your resources to build a more informed case.”
Schulenburg also spoke of the action SCRS, the Automotive Service Association (ASA) and the Alliance for Automotive Innovation (Auto Innovators) have taken with proposing landmark federal legislation – the SAFE Repair Act – which puts emphasis on safe, proper repairs and consumer protection.
AASP/MA President Matthew Ciaschini, Aaron Schulenberg and AASP/MA Executive Director Lucky Papageorg
SCRS’ study is really the only one available to the collision repair industry. Although the major IPs have indicated they have done their own studies in the past, “the IPs haven’t released their studies, but they haven’t rejected ours.”
He alluded to the many variables that have changed. Customer expectations have expanded over the years. Colors have advanced considerably in today’s world, and vehicle owners can spend over six figures on a vehicle. “All these variables play a role in what you have to accomplish today versus back then,” he noted. Effectively using the data isn’t simply stating “the study says,” but rather having the understanding and the documentation to be able to engage in better conversations, according to Schulenburg.
“The reason blending takes much more time is the preparation involved,” he stated, pointing to soap and water wash, an absolutely necessary step, especially with metallic paint but which is not involved with new and undamaged parts.
Repair planners have to know how to communicate so they can have conversations
He stressed there were shared concerns that the REPAIR Act legislation - championed by aftermarket parts and insurance groups as “Right to Repair” - had “nothing to do with consumer protection,” and therefore, they could not lend their support. Instead, they decided to change the conversation toward consumer safety by launching their own bill that “focuses solely on safety and preserving the consumers’ right to repair.”
This initiative and the other resources SCRS puts into play are all done in order “to try to have the right conversations on the right issues, develop programs that will have positive effects and be the eyes and ears of the industry.”
The meeting provided time for an open forum discussion on basic shop practices, launching an interactive conversation covering everything and anything from collecting customer pay to experiences with filing complaints to the ADALB. Tales about four-day work week trials and the associated wins and losses were shared as well as fears surrounding advancing technology like artificial intelligence (AI).
As the event came to an end, Papageorg infused the audience with motivation to take what they learned and use it.
“Put your plan into action, so you too can thrive in 25.”
AASP/MA Conducts Inaugural MVDA Licensing Course
The Alliance is proud to announce the successful completion of its first motor vehicle damage appraiser (MVDA) licensing course this spring.
More than 20 students completed the 60-hour course, which earned them a certificate of completion in preparation for the Part-I and Part-II portions of the examination for motor vehicle damage appraiser.
The course was held at Akiki Auto Body (Hyde Park) taught by Elias Akiki, an experienced instructor who has been in the body shop business for 40 years. Additional instructors included 20-year licensed appraiser Vlad Gersht, who also has an additional 15 years experience in the collision repair industry. AASP/MA Executive Director Lucky Papageorg, licensed for 35 years, also assisted with the course material presentations. Nadine Nesbitt, a licensed appraiser since 1991 and longtime licensed insurance agent since 1985, ran two sessions of the course giving a deep dive into the Massachusetts automobile insurance policy. In addition to the Part 1 exam-preparation, students were provided with hands-on opportunities to properly estimate and write collision damage reports and repair plans in preparation for the practical part two portion of the exam.
Those interested in taking AASP/MA’s MVDA licensing course can add their name to the waiting list via bit.ly/MVDAlicensecoursewaitlist
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History is Made – Auto Body Labor Rate Advisory Board Business Begins
On April 17, history was made in the Massachusetts auto body world.
The inaugural meeting of the newly formed Auto Body Labor Rate Advisory Board (ABLRAB) took place in a virtual setting, allowing appointees the opportunity to introduce themselves, formulate timelines and determine what data sources to tap in order to obtain the information necessary to have effective communication over the next several months virtually and in person.
The event marked the very first time auto body shops had a seat at the table to discuss labor rate reimbursement, a matter that had been overlooked for far too long.
At the close of 2024, Governor Healy signed an Economic Development Bill package that included language regarding the creation of this advisory board intended to meet, study and review labor reimbursement rates in order to make recommendations to the Division of Insurance (DOI). As a result, AASP/ MA was granted three appointees to the Board – Brian Bernard (Total Care Accident Repair; Raynham) who is the current Alliance legislative chairman, Rick Starbard (Rick’s Auto Collision; Revere), veteran shop owner, former local politician and former member of the Auto Damage Appraisers Licensing Board (ADALB) and Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield), AASP/MA’s president.
Economics, Northeastern University) as the economist and David Brown (Bill Diluca Chevrolet-Cadillac, Inc.; Andover) on behalf of the Massachusetts State Automobile Dealers Association.
This initial meeting covered the areas of investigation the Board will set out to review. Considerable time was spent on data collection and how to obtain labor rate information from other states, auto body shop operating costs, inflation data, etc.
While addressing sources for data collection, Bernard offered up some history referring to the 1988 Insurance Reform Act when labor rates were decreased as a “big impact moment in time,” suggesting that taking a comparative look at how labor rates have changed over that period of time would be good for discussion.
When other Board members questioned the need to go back that far, Starbard contributed, “That’s where it all began.
The Board is being co-chaired by attorney Michael Powers, counsel to the Commissioner of the DOI and Stacey Gotham, actuary of the Insurance and Financial Services Division. Rounding out the 13-member Board are Mark A. Merante (Division of Standards), Christopher S. Stark (Massachusetts Insurance Federation), Peter Smith (MAPFRE) and Samantha Tracy (Arbella Insurance Group) as appointed by the Automobile Insurance Bureau; Paul Burke (BayCoast Insurance Company) on behalf of the Massachusetts Association of Insurance Agents; JC Burton (Maven Construction) on behalf of the business community; Sean Kane (Safety Research & Strategies, Inc.) as the consumer advocate; John Kwoka (Neal F. Finnegan Distinguished Professor of
Massachusetts was bottled into cost containment at that time. We don’t have to reinvent the wheel, but to get to any progress, we do need to go back and look at the history of how we got to this place.”
“I don’t see a problem with attaching those reports as appendixes,” Gotham responded, adding that “it’s information to drive home the need to keep the labor rates up with the rate of inflation and premium changes,” although she doesn’t believe the legislation had that in mind. “The more information the better,” stated Powers, “but how do we get it?”
Stark implied the Massachusetts Insurance Federation has that data. “As long as we are supplying factual data, I have no problem analyzing both sides of the conversation.”
“I can understand that no one wants to pay more for insurance, but the collision repair side has done its share to subsidize that, and we are at a crisis point to no longer be able to do that,” Starbard stressed. “These cars have to be fixed, and we have to be able to train our technicians to stay current. There is no way we can do that with the current system.”
Gotham reiterated that they will take that and whatever information that can be forwarded to the Board into consideration. Kane helped drive home the point that vehicles today are more complex and technicians are in need of specialized training
by Alana
by stating, “One of the things I’m seeing is that vehicle technology is so much more complex, and that complexity is adding to the great deal of costs in training and materials.” He added that he has information on this matter to share with the Board.
Discussion was also centered on what surveys to use in their research and the difference between posted labor rates versus the market rates. National AutoBody Research’s LaborRateHero.com was mentioned as a reliable source, which collects posted labor rates by shops all over the country, with 200-plus shops in Massachusetts.
“I think we need to do a bit of an education on how the labor rate is paid, collected and charged,” offered Ciaschini, about the differences in regions. “We run off a mutual database; most times, insurance uses the same information, like with CCC One estimating software, for example. Book times are set by MOTOR for every car.”
“No matter where the car is repaired, those labor times are the same, no matter what state. Labor hours don’t change per region,” Starbard added.
“I welcome you to educate the Board on that,” replied Gotham.
The Board reconvened May 5 to continue discussion about survey recommendations. Ciaschini suggested using neighboring Rhode Island’s survey as a basis to “capture a true market rate.”
Bernard pointed out that “ultimately, we need a variable rate system as no two shops are exactly the same,” informing the Board, “We have to look at criteria of what the costs are for a shop to be able to pay their bills.” He cited OEM certifications, real estate, training, tooling and other factors that can vary from shop to shop.
Considerable time was spent on whether to consider program contract rates in their survey. Bernard stated that contract rates are not a fair representation as they “represent a closed market between two parties” and “to mix apples and oranges to come to a blending number would not be meaningful in any way, shape or form,” while Stark believes, “It’s important to capture the various levels from posted rates to contractual rates and vendor contracts so we can get a true snapshot of what the labor rate looks like across the board.”
Further discussion led to the agreement that the Board will work to create one single survey that both the auto body and the insurance sides agree on.
The Board planned to meet on May 29 to review the drafted survey and finalize it in preparation of a vote. The Board has scheduled a public hearing for June 12th at 2pm in Boston, at the State House.
The inaugural April 17 meeting can be viewed online at bit.ly/ABLRAB41725.
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Risky Business – CIC Panel Covers Cybersecurity Concerns
The most recent Collision Industry Conference (CIC) covered all bases crucial to the collision repair industry including how it can be a “risky business” at times.
The Data Access, Privacy & Security Committee set out to “educate everyone as to what some of the challenges regarding data access privacy and security are in our marketplace,” outlined Committee Co-Chair Trent Tinsley (Entegral), as he introduced Alex Pavlinik and Allan Polak of StoredTech to present an eye-opening cautionary tale about “Lucky Bob,” the shop owner who found himself victim of a very costly bitcoin ransom scam. It wasn’t Bob’s “lucky” day at all as Pavlinik and Polak relayed how his innocent click in an email from a “trusted tool supplier” was all that threat actors needed to lock up all his files.
Pavlinik relayed the horrors that came next: “Now, Lucky Bob thought, ’Maybe this is a fluke. Let me check with my parts department.’ Lucky Bob checks with parts. They can’t access order forms that were stored on the computer as well. The computer files aren’t opening anymore
on any of the computers in the offices. Also, something strange is happening in the office. It’s eerily silent. The phones have stopped ringing. The phones have disconnected from the cloud, no longer getting calls in. We now have customers coming up to the desk of the service department and the parts department. They can’t check out. The computers and terminals can’t access the internet.”
Lucky Bob faces the ugly game of “Let’s Make a Deal” and pays the half-bitcoin ransom which amounts to roughly $50,000. Did it solve his problem? “The hackers lied, and they did not release all the information. These are criminals, and there’s no honor among thieves,” Pavilnik stressed. Not only was Lucky Bob’s information compromised and leaked, he was out another $150,000 in recovery fees.
Being educated and aware in order to avoid situations like this is the key in all this. However, if a shop owner were to find themselves in Lucky Bob’s shoes, the first person they should contact is their lawyer. Some may think to call their IT
manager first or their insurance company, but according to Pavlinik, “You call your lawyer. And the reason for that is you want to establish a term client privilege in this situation. You are now facing hundreds of thousands of dollars in civil penalties, and depending if you pay, felonies. I would highly suggest that you establish that communication first, and then you move on to the insurance company.”
Moderated by Kye Yeung (European Motor Works), the Repair Process and Procedures Committee panel – featuring Barry Dorn (Dorn’s Body and Paint; VA), Justin Lewis (Accurate Auto Body; WA), Shawn Powell (Dorn’s Body and Paint), Jeff Butler (post-repair inspector) and Tim Ronak (AkzoNobel) – covered the various considerations involved with the clear coat process from the application to negotiation and post-repair inspection.
Consumers need to be aware of the process, and as Powell explained, it begins with the estimating process. “A lot of times, we offer to bring the customer back to the paint department and show them what the process looks like and explain why we are doing it that way to provide them a pre-loss as best as possible condition and allow us to build a warranty repair when we’re done with it.”
Panelists outlined the importance of documentation to support one’s stance and to be sure repairs are done right because if there is an issue, “you can have the customer come back to you and say ‘you didn’t give me a choice; you chose to do it this way, so you owe for the correction.’ So, you can see how complicated things can get when you do a repair. Obviously, it’s not just the matter of pleasing the consumer in the present, but it can have ramifications down the road,” Yeung stressed.
The next CIC is set for July 23, 2025 in Philadelphia, PA. Learn more about the next event and how to register at ciclink.com.
Allan Polak and Aleks Pavlinik of StoredTech
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Preparing for the Storm: Understanding Tariff Turbulence in the Collision Industry
There is so much our industry doesn’t know about tariffs. How will they affect our industry? What can we expect to happen, and when can we expect it?
While things appear to be relatively calm before the potential storm hits, Ryan Mandell (Mitchell International) set out to provide insight into what role world tariffs may play in the collision repair world via a webinar hosted by the Collision Industry Electronic Commerce Association (CIECA) in mid-April.
“This is a very volatile and important subject as it has the potential to cause a disturbance in our world,” outlined Mandell, who stressed that there has been a lot of change happening since the current administration began to enforce these policies.
Because “there are a lot of moving parts, some of it is open to interpretation, so what you’re seeing today is our interpretation of the research that we’ve done on the specific topic with a heavy
reliance on Mitchell data to help understand the quantifiable aspects that we can understand and look for moving forward,” he explained.
The tariffs apply to whole vehicles that are being imported to the United States. As of April 3, there is a 25 percent tariff on whole assembled vehicles being imported into the US. It was expected that a 25 percent tariff would commence on May 3 for imported auto parts that are not necessarily a component of a whole assembled vehicle.
Mandell noted that these tariffs only apply to areas outside of the United StatesMexico-Canada Agreement (USMCA), which remains intact. However, he advised to keep in mind that change has been dramatic – just in the 30 days leading up to this discussion alone – and more change may come into play over a 90-day period, according to the US Department of Commerce.
Not a single manufacturer is spared
from tariffs; however, the equation “is not that simple,” according to Mandell. He explained one can’t just look at one manufacturer overall – “you have to look at each individual model to see where there’s more exposure to foreign manufacturing to see where there’s more exposure.”
How tariffs affect vehicle manufacturing is going to be vehicle specific. For example, Honda CRV manufacturing involves 20 percent coming from Japan and assembled in the US, while a Toyota 4 Runner is 100 percent manufactured in Japan and assembled in the US.
Ninety percent of the 2025 Hyundai Elantra comes from Korea as well as its final assembly, “so we can assume that the entire vehicle will be subjected to a 25 percent tariff.”
Prior to the implementation of these tariffs, it was believed that “domestic brands were going to look into expanding manufacturing into mainland China.” However, Mandell believes that may no longer be the case as a result.
There are many unknowns on how this could affect the consumer as it may be assumed that the tariff costs will be passed on to them; however, “there are strategies OEMs and dealers have at their disposal to potentially adjust some of these values and limit exposure to the end consumer.”
Cost increases of new vehicles is likely to result in a higher demand for used vehicles, Mandell predicted. As was seen during the pandemic, a reduced supply of new vehicles may result in a five to 10 percent increase in used vehicle prices as a result. A lot of manufacturers are also planning to “produce fewer vehicles for importation into the US, so as that happens, it’s just simple supply and
continued from pg. 24
demand. As the supply weakens, the demand will increase, creating a situation where you see used vehicle prices increase.”
Consumers have been trying to avoid paying more by making new vehicle purchases this spring. “Cox Automotive reported the average days of supply for new vehicles dropped from 91 days in March to 70 days in April. Consumers are essentially looking at this as getting the vehicle at a discount before they go up in price.”
How could this affect total market loss values? “We can expect a bit of a lag,” Mandell reported. “Most insurance carriers are looking at historical data between 30 and 90 days to be able to get comparable vehicles they can base the total loss market value on. It takes some time for that to show up in the data. Total loss market values have been flattening for the last several months, so we would expect more of a flattening trend to take place into the summer. And as we get closer to the middle of the summer, we’ll probably actually start seeing the effects of these tariffs if they do indeed play out.”
It’s expected that vehicle owners are likely “to spend more money on maintaining their vehicle rather than replacing it.” Mandell suggests that one can easily make the case that consumers are feeling financially strapped due to tariffs being imposed on many industries affecting their daily lives which could make them
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delay new vehicle purchases, especially with the uncertainty of not knowing how long these tariffs may potentially be in place.
How will parts be affected? “It depends on the part. You can’t assume that there will be a price increase across the board,” according to Mandell. In addition, a reliance on replacement parts is also expected. He also pointed out that “it appears that sheet metal components – like hoods, doors, fenders and things of that nature – will not be incurring additional tariffs at this time.”
It’s also believed that there will be a reduction in overall total loss frequency between roughly one to three percentage points due to various factors. “New vehicle price increases will trickle down to used vehicle prices. The cost of repair will also go up but not to the same degree, but you will see an increase in salvage vehicles due to increased activity for the rebuilder market and an increased demand for recycled parts.”
Mandell noted that the USMCA still applies to items manufactured in Canada or Mexico. However, items like sensor cameras involved in ADAS components, for example, could fall into the tariff category if the manufacturer uses diverse materials from different parts of the world. “So, even if a part is manufactured domestically or within the USMCA, there could potentially be some exposure to additional tariffs because of the raw materials used.”
As the industry saw with the pandemic, there is so much unknown about what could happen and when, especially as various unknown variables could potentially change outcomes. At the time of Mandell’s webinar, the parts tariffs had not yet gone into place, and “knowing that, there is inventory onshore we can assume that will get worked through first.”
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Mandell also spoke to what can be expected for consumers and their automobile insurance. “It really comes down to if they see increases in their premiums,” he foresees. “Insurers are looking at mitigation strategies, and it appears that tariffs may be around for a significant amount of time, so they may be looking to increase rates across the board. Typically, that requires a 12-18 month regulatory approval process, so that may be a little more of a midterm effect later down the road. But as premiums increase, you can expect to see consumers make different decisions about their auto policies. Over the past couple of years, as premiums have increased, we have seen fewer claims be filed for smaller hits. Either consumers have dropped coverages from their policy to increase their affordability or they’ve raised their deductible, and it just doesn’t make financial sense for them to go through with a minor damage claim.”
by Chasidy Rae Sisk & Alana Quartuccio
For nearly half a decade, body shops have been juggling more work than they could handle, and then suddenly – BOOM! Things shifted; volume has been decreasing in repair facilities across the country since last year.
“Not since the pandemic year of 2020 have so many US shops reported six-month sales and net profit being below the same period a year earlier,” Crash Network reported in April, citing its recent “Collision Industry Business Perspectives” survey. “Nearly half (46 percent) said their sales and net profit in the second half [of] 2024 were down from what they were in the second half of 2023. It’s the fourth survey in a row where that percentage has risen (from a low of just seven percent who said six-month sales were down in 2022) and is almost as high as when 53 percent of shops reported sales down in the second half of 2020.”
Although the Crash Network survey indicated 39 percent of shops had seen no six-month change in sales and net profit, only 15 percent reported an increase in the second half of 2024 compared to the same period in 2023. “Again, it hasn’t been since 2020 when [so] few shops were seeing an uptick.”
According to Focus Advisors’ “2024 Year in Review: Some Excel on a Bumpy Road,” some operators reported “their trailing 12-month sales were down as much as 20 to 30 percent.”
Commonwealth collision repairers are feeling the effects as well.
“We have slowed down a lot,” reports Kevin Gallerani (Cape Auto Body and Service; Plymouth). “I feel like my shop is at half capacity right now.”
Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield) acknowledges “a slight slowdown compared to the volume we had in the previous couple of years,” but he insists, “It’s nothing alarming, but it’s definitely noticeable. While we were used to being booked two months out, we are now only booked for the next two weeks.”
What’s causing the reduction in workload?
“It’s the perfect storm of factors,” Ciaschini suggests. “Claims are down overall. Total losses are up because used car prices have stabilized while salvage has not, thus making totals much easier to get to. The economic climate also plays a role: repairs are expensive, and people are scared. They are scared to spend their money but also scared of the unknown, like the possibility of their insurance policy rates going up.”
Gallerani agrees that “it is a combination of a few things. First, it has been a mild winter with few storms and really no bad weather. Second, not many people travel a lot during winter and spring (summer is usually a busy travel season). Third, I think people are wary about the economy and are trying to save money where they can. Fourth, insurance is expensive, so people are scared to call in claims; they are just ignoring cosmetic damage. Fifth, ADAS is working on preventing accidents, and it’s likely that we will see fewer collisions and fewer vehicles in need of repair year
after year.”
Unfortunately, while technology contributes to the reduction in workload, it is simultaneously creating the need for many shops to make significant investments in their businesses via ADAS diagnostic tools, recalibration systems, training and various facility and equipment upgrades related to calibrations and OEM certification. Thus, net profit drops even lower as the revenue being collected is allocated to updates necessary for shops to remain relevant in this ever-changing industry.
So, what can shops do to ensure they’re still viable before the situation comes to a boil?
Cape Auto Body and Service is combating these challenges by doing a few things: “continuing to market our business as we always have, continuing to give our customers the best options that we can and spending more time than usual trying to sell ourselves to customers,” Gallerani shares. “When things are good and we’re busy, we focus less on those vital sales skills. When things dry up, it’s obvious that we need to focus on those selling skills and become better salespeople.”
“We’re trying to be more efficient in our capture of clientele, our process and our message,” Ciaschini offers. “We want it to be undeniable for customers to choose us, so we have continued to try to stand out from our competition through our marketing and branding. Our social media plays a huge role in establishing who we are and why someone would choose us. I think this is particularly important when you are not on the insurers’ programs because no one is shuffling your work. You need to prove yourself in your market through reputation and ability.”
But doesn’t marketing just cost more money?
“One thing that shops can do when they are slow, which doesn’t cost money, is to maximize their Google Business profile,” recommends Micki Woods (Micki Woods Marketing). “It’s something every business has on Google; they can claim their business profile, add photos, make sure the hours of operation and contact information is all correct. That is basically a shop’s digital business card. It doesn’t take a whole lot of time or effort, but it’s super important and highly valuable.”
Optimizing the shop’s Google Business profile and website requires little to no investment, depending on one’s technical abilities. Mike Anderson (Collision Advice) offers some critical advice: “You absolutely have to have the ability for a customer to request an estimate or schedule an appointment via your Google Business listing as well as your website.”
He also urges OEM-certified shops to capitalize on the digital resources at their disposal. “Check your shop’s listing on the OEM shop locator just to make sure that it’s accurate and that all of the links are working. A lot of times, I’ll go to a link in the OEM shop locator for a shop, click and find it broken. You just can’t assume
continued from pg. 29 that all is ok. Go in and just check it.”
David Luehr (Elite Body Shop Solutions) suggests another way to capitalize on those certifications. “If I was slow right now, I would be at the closest dealership, especially if my shop had certifications, and I’d sit down and do a presentation for their service writers on why my shop is the only shop in town they should send their work to.”
Of course, OEM certifications aren’t the only thing that can help shops stand out. Luehr insists the best marketing tool is identifying what makes your shop unique and focusing on that. “A lot of body shops fail because they are out there selling mediocrity. They don’t have a unique selling proposition (USP) that answers the question of why someone should bring their car to your shop over everyone else in town. It can’t just be because we have great customer service or do high-quality work because everyone says that. Shops have to be super clear on what makes them stand out amongst the mediocre competition.Shops will want to offer an USP that won’t make a customer ask ‘so what?’”
According to Woods, “There is so much value in old school traditional networking.” Local networking can provide myriad opportunities, and she suggests reaching out to schools, chambers of commerce and other businesses to create a network that can refer business to one another.
Anderson agrees that plenty of opportunities exist in one’s local community, and he suggests hosting open houses for car clubs during the warm months which provide a great time to get in front of customers.
Luehr suggests getting creative. Back in his Salem, OR body shop days, he had “Salem’s fleet specialist” brochures drawn up and left them at any company he noted had a fleet of vehicles. “What I unknowingly did was create something out of air that people wanted. I created a perception that my shop was the only fleet shop in Salem. So, guess who got the business? Me, because I was supposedly a fleet specialist.”
Marketing isn’t a short-term fix, though. It should be applied consistently to reap the greatest results. “Collision repair is an on-demand business,” Luehr points out. “Marketing is only going to be effective if someone hears it the moment they’ve been in an accident” unless the shop has already created name recognition through its ongoing advertising strategies.
“Marketing is about having customers know who you are before they wreck their vehicle,” Anderson adds.
“We’re trying to be more efficient in our capture of clientele, our process and our message. We want it to be undeniable for customers to choose us, so we have continued to try to stand out from our competition through our marketing and branding. - Matthew Ciaschini
Worried about how long this downturn in work may last? No one knows for sure, of course, but there’s reason for optimism.
Luehr acknowledges that dips in the business happen regularly. “We hope it’s a short-term dip, but it does happen. Pre-COVID, dips happened every year. It’s not some strange new anomaly.”
Ciaschini sees the current market conditions as “more of a time to reflect for a moment than a panic situation.” In the meantime, he recommends, “Stay aggressive, stay visible, and run your shop like a real business, not just an extension of the insurance companies. Invest in your people and your processes, because shortcuts will kill you faster than the slowdown will.”
“Be a better salesman, and focus on your capture rate,” Gallerani contributes. “Focus on the customer experience and try to put yourselves in your customers’ shoes.
“There will always be highs and lows,” he observes, predicting, “Things will come back, they always do!”
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liked the sound of clear pricing and better communication. But as co-owner Megan Mueller told RDN, they quickly found out the better pricing only applied to Select Service shops. Independent shops like hers were left out – getting lower rates or no payment at all for the same work.
Michael Arellano at Rickenbaugh Collision Center in Aurora said State Farm started calling dealerships to confirm calibration prices – but they used the wrong language, got bad info and lowballed the quotes. His shop had to go back and get the real numbers themselves just to be treated fairly.
According to Rick Elsinger at Aurora Collision Center, the prices State Farm is offering don’t even cover the cost of the work. There’s no profit. No margin. And in some cases, the customer has to cover the difference out of pocket just to get the job done right.
This is what shops are dealing with. They’re being asked to either eat the cost or pass it on to the customer. Neither is fair, and neither keeps the repair industry sustainable.
On top of that, State Farm’s policy steers shops toward using specific mobile vendors they’ve pre-selected. It doesn’t matter if you’ve got a better provider down the street – if they’re not on the list, State Farm may not pay the full amount.
So, what started as a program for “quality repairs” is turning
into something else: a system that cuts out independents, underpays real work and funnels jobs to whoever agrees to State Farm’s terms. And shops are left holding the bill.
This might look like a business decision, but when you step back and look at the whole picture, it starts to look like something much bigger – and much more serious. It might be an antitrust violation.
Here’s the simple version: antitrust laws exist to stop powerful companies from crushing smaller ones by setting prices, blocking fair competition or controlling entire markets. And right now, it looks like that’s exactly what State Farm is doing.
They’ve made up their own pricing tables – and they’re telling shops what they will or won’t pay, no matter what the actual work costs. That’s not negotiating. That’s vertical price fixing – one big company forcing lower prices onto a bunch of smaller businesses.
They’re picking the vendors. They’re deciding who gets paid and how much. That’s the kind of monopsony behavior – one powerful buyer controlling an entire service market – that the law is supposed to prevent.
And they’re leaving independent shops out in the cold. If you’re not in their network, you get underpaid or skipped altogether. That’s a form of group boycott, where the big player continued on pg. 36
continued from pg. 35
pressures the market to push out the competition – in this case, the independent shops who won’t fall in line.
There’s actual case law that lines up with what’s happening here.
In Quality Auto Painting v. State Farm (2019), a group of shops said insurers were working together to keep labor rates down across the board. That case is still developing, but the court made it clear: if you can prove a pattern of suppression, there may be a serious antitrust case.
In Royal Drug Co. v. Group Life & Health (1979), the Supreme Court said that contracts with third-party service providers – like shops – are not protected by insurance exemptions. That means insurers can’t hide behind the idea that this is just “how insurance works.”
And in Pireno v. Union Labor Life (1982), the Court laid out a test: to be protected under the McCarran-Ferguson Act (the law insurers often lean on), a business practice has to spread risk, involve the customer and stay inside the insurance industry. Telling shops what to charge and who to work with? That doesn’t pass the test.
So if you’re feeling like this isn’t just unfair – like it’s crossing a line – you’re probably right. This isn’t just about a policy. It’s about power…and whether State Farm is using too much of it in ways that may break federal law.
And if shops don’t start speaking up, the rules won’t change –they’ll only get worse.
If this whole situation with State Farm feels familiar, that’s because it is.
For years, labor rates in Massachusetts have barely moved, even while the cost of living, tools, training and wages have all gone up. Shops have had to do more with less, just to keep their doors open. And all the while, insurance companies have held the wheel – deciding what gets paid, how much and to whom.
Ask any shop owner: the “prevailing rate” surveys are a joke. They aren’t real reflections of the market. They’re built and controlled by the insurers themselves. That’s how the numbers stay low – by design.
Now with this calibration rollout, State Farm has added another tool to the box. It’s not just about labor rate suppression anymore – it’s about procedure suppression, vendor control and reimbursement caps that shops can’t challenge.
They’re deciding what work is “necessary” based on their software. They’re telling shops which vendors to use. And they’re locking out any shop that won’t play by those rules.
This isn’t just about ADAS. It’s not just about calibrations. It’s about setting a precedent.
If State Farm – or any insurer – can dictate the price, the process and the provider, then what’s left for the shop to decide? At that point, the insurer isn’t just paying the bill – they’re
running the business.
That’s the danger. If this goes unchecked, we’ll see more programs like this, more forced partnerships and more short-pays. And little by little, shops will lose their power to do the job the right way – the safe way – and still stay in business.
That’s why it matters now. Not later. Because once the precedent is set, it’s a lot harder to roll back.
So, what can shops do? A lot more than you might think.
First, know your rights. You are not required to accept a lowball payment just because an insurer says it’s “standard.” If you followed OEM repair procedures, used the right equipment and did the job the right way, you deserve to be paid fairly. And if they refuse? You can push back.
You can challenge short-pays. You can submit supplements. And if the insurer keeps denying them without a good reason – especially when the OEM backs you up – that’s something regulators, attorneys and lawmakers care about.
But here’s the key: document everything. Keep records of every denied supplement, every time you’re told to use a cheaper vendor, every time they ignore OEM guidance. Write it down. Save the emails. Take screenshots. These aren’t just annoyances –they’re evidence. Evidence that shows a pattern of bad behavior.
And don’t stay quiet about it. Raise your voice. Share your story with trade groups. Bring it to the Collision Industry Conference. Talk to your legislators. File a DOI complaint if you need to. One shop’s story can be brushed aside. But a hundred shops telling the same story? That’s when the pressure starts to build.
Regulators and antitrust enforcers won’t move until they see the full picture. It’s up to us to paint that picture for them. And we do that by standing together, staying organized and refusing to let insurers rewrite the rules behind closed doors.
You’ve got more power than they want you to believe. Use it.
Let’s be clear – this isn’t about a $3 software charge. And it’s not about one insurer making a policy change. This is about something much bigger.
It’s about control – over your work, your prices, your vendors and your ability to run your business the way it should be run. It’s about a major insurer using its size and power to shift all the leverage to their side of the table, one decision at a time. And if we don’t call it what it is, that control will only grow stronger.
Because when an insurer like State Farm can decide:
• Who does the work,
• How much that work is worth,
• and whether you get paid at all –
That’s not a partnership. That’s a rigged game.
PRESIDENT’S MESSAGE
continued from pg. 6
How We Are Approaching It
As an association, we’ve done the groundwork. We’ve compiled real data: weighted averages of labor rates, market share analyses, comparisons to neighboring states, CPI increases and the true cost escalation for shops since the 1980s. We’ve built the case carefully –every number footnoted, every argument backed up.
We are not showing up to meetings with emotion and anecdotes.
We are showing up with spreadsheets, charts, historical facts and economic realities — the kind of irrefutable evidence that leaves the other side scrambling to invent creative excuses.
Our strategy is simple: Be professional but relentless. Stick to the facts. Counter misinformation immediately. Stay visible. Stay involved. Stay unified.
The insurers’ game plan is obvious: delay, distract, diminish. Ours needs to be equally clear: push, press, prevail.
The Uphill Battle – and Why We Must Climb It Anyway
Let’s not kid ourselves. This is Massachusetts. Insurance companies have had their hands deep in the pockets of Beacon Hill for a long, long time. There will be resistance. There will be absurd arguments made with a straight face. (“Maybe shops should just become more efficient and not worry about fair wages” – yeah, we’ve heard that one.)
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But here’s the thing: they are scared. If they weren’t, they wouldn’t be working so hard to spin the narrative.
We have the truth, the facts and – most importantly – the people on our side. Consumers deserve access to safe, quality repairs. Shops deserve to be compensated fairly for the work they do. Technicians deserve to earn a wage that makes staying in this industry a viable career.
This isn’t just about a “raise” for shops. It’s about survival – for all of us.
Closing Rally Cry: Get Involved, or Get Left Behind
You don’t have to be the loudest voice in the room. You just have to be in the room (or in the Zoom). Every shop owner, every technician, every estimator, every supplier has a role to play. Our opposition counts on apathy. Let’s disappoint them.
When we fight smart and fight together, we will win. And when we win, the future of our industry – and our livelihoods – will be stronger for it.
See you at the next meeting. No excuses.
Join Reliable Automotive Equipment’s Dave Gruskos for a conversation with leading OEM representatives of certified collision repair programs, sharing the latest news & updates from the OEM. This month, we meet Volvo’s Kenneth Park.
Certified Collision Repair Q&A With: KENNETH PARK VOLVO CARS USA
Dave Gruskos: What mandatory tools, equipment or facility parameters must a shop adhere to in order to be part of the program?
Kenneth Park: The tooling and equipment requirements for centers to participate in the program is quite long. High level centers are required to have the approved spray booths, welders and frame machines, as well as various other hand tools.
DG: Are there any new program requirements of initiatives you would like to share with our readers?
KP: We recently upgraded our welder requirements from 12,000 amps to 13,500 amps to ensure proper marrying on heavily structural repairs in certain areas of our vehicles.
DG: How does Volvo support shops as they navigate the investment in tools, equipment or facility upgrades to maintain certification and repair to OEM standards? Does Volvo have preferred vendors for purchasing required equipment and tools, and do these vendors offer support to the shops?
KP: We essentially do not require specific tools from specific vendors. We do have a list of approved/required tools such as benches, welders, spray booths, refrigerant machines, etc., that do comply with our requirements. However, most required tooling can be purchased from a vendor of the center’s choice. We find that vendors supplying these tools to locations offer support when necessary and we’re always happy to assist any of our Volvo Certified Centers when they’re looking to make a purchase.
DG: What role do certified shops play in communicating Volvo’s standards of quality and adherence to OEM repairs to consumers? What is Volvo doing to help these shops stand out to consumers in an increasingly competitive market?
KP: We believe that clear communication and continuous education are essential to promoting the core values of the Volvo Certified Collision Program. This program is built on the principle of prioritizing occupant & pedestrian safety, both before and after a collision. We emphasize this commitment across our network, empowering our certified locations to share that same message with Volvo drivers. Additionally, we engage with customers through multiple channels to raise awareness about the importance of high-quality collision repairs and the potential risks associated with improper procedures. Repair requirements can vary not only between vehicle makes but also between individual models. Factors such as structural design, advanced technology, and the materials used in manufacturing may necessitate specific techniques, tools, and training for proper repairs.
ABOUT THE PROGRAM
# of Volvo Certified Collision Center locations: 285 (Continental US & Hawaii)
Ratio of independent to retailer-owned locations: 71% independent, 29% retailer-owned
DG: How does Volvo help shops adapt to the constantly increasing complexity of vehicle technologies, like ADAS or EV repair?
KP: We require our repair centers to maintain up-to-date training through I-CAR and to actively use our proprietary software, VIDA. This is the same diagnostic and repair platform utilized by our retailers, ensuring consistency and accuracy across all service points. By using VIDA, our centers gain deeper familiarity with our vehicles, repair procedures, and all associated parts, enabling precise and efficient repairs.
DG: What unique challenges and/or opportunities do you see for certified shops who specialize in repair of Volvo EVs?
KP: The electric vehicle (EV) market has seen steady growth, and in many regions, it's now common to see EVs on the road alongside traditional internal combustion engine (ICE) vehicles. This shift presents a significant opportunity for collision centers to expand both their service capabilities and technical expertise.
However, EVs differ significantly from ICE vehicles and often require additional training, specialized tools, and a higher level of investment to ensure repairs are performed safely and correctly. These added requirements may discourage some centers from pursuing EV repairs, particularly in areas where EV adoption or charging infrastructure is still limited.
That said, in markets with a high EV car parc, the opportunity is substantial. EV owners typically seek out repair facilities that are both experienced and certified by the manufacturer. By specializing in EV repairs and obtaining the proper certifications, a center can position itself as the go-to destination for EV repairs, potentially receiving referrals from other shops that focus solely on ICE vehicles.
In Q3 of 2024, we launched the EV Tier of our certification program. This new tier includes five days of hands-on training with our vehicles, prerequisite coursework, and a suite of EV-specific tools, in addition to those already required by our Certified Collision Program.
This initiative not only ensures the highest standards of safety and quality in EV repairs but also gives customers the confidence that their vehicles are being serviced by trained and certified professionals. Only collision centers that are already Certified are eligible to pursue EV Certification.
Kenneth Park Volvo Cars USA
And in that game, the ones doing the repairs – the ones with the training, the tools, the certifications, the responsibility – get treated like disposable vendors.
That’s the line that’s been crossed. And if the industry doesn’t push back now, insurers will keep moving that line until there’s nothing left to fight for.
It’s time to speak up.
It’s time to push back.
It’s time to take our seat back at the table — before it’s gone for good.
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or via email at spreston@coveralllaw.com
continued from pg. 8
Additionally, a DTP, even if verified on the day of vehicle pick up is made, is worthless by a simple call from the vehicle owner to the adjuster saying they now prefer to receive the money directly.
Another reason to “Never” release a vehicle prematurely: once it’s gone, it’s gone. Many assume a mechanic’s lien will protect them. But a mechanic’s lien is possessory – you lose the power afforded you under a mechanic’s lien the moment you give up the vehicle. Sure, you can try to chase it down later, but why put yourself in that position, when you are already in possession of the vehicle?
If you take the time to establish these protocols, enforce your rights and document everything, I can confidently say – though I’m not an attorney – you will almost never be left out to dry by an unethical insurance adjuster, appraiser or vehicle owner.
Clear communication with customers also plays a crucial role. By managing their expectations up front, you can reduce administrative headaches later and ensure a smoother process for all involved.
Let’s be honest – there is no “easy button” in this line of work. No one in collision repair has ever said, “That was simple.” But saying “never” to the right things is the next best option. When you take a hard stance against risky behavior, vague documentation and poor communication, you’re choosing excellence – and that will always be worth it.
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.
