New Jersey Automotive August 2015

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

TM

August 2015 $595

www.grecopublishing.com

4 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 5

P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

CONTENTS

VOLUME 45, NUMBER 8 | August 2015

8

OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE

14 EXECUTIVE DIRECTOR’S MESSAGE 31 IN MEMORY: KATHY AMATO 62 NJA ADVERTISERS’ INDEX

INDUSTRY UPDATES

20 CT Supreme Court Overturns $34.7M Body Shop Award 20 Shops Reject PartsTrader Incentives for Non-State Farm Work

VENDOR SPOTLIGHT

by Joel Gausten

26 It’s Personal: Maxon Hyundai/Mazda Delivers More than Parts

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

COVER STORY by Jacquelyn Bauman

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com

2015 NJA Industry Survey Results

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

35 A Snapshot of the Industry: NATIONAL NEWS

by Joel Gausten

46 SEMA 2015 to Host Largest Repairer-Driven Education Series Yet

NO BRAKES

by Ron Ananian

52 Writing ’Bout Anything PUBLISHER Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)

MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com)

OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

CONTRIBUTING EDITORS

Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 56 Legal Update

57 Wharton Insurance Briefs The Alliance of Automotive Service Providers/New Jersey Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest

HALL OF FAME

Tom Elder Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano

Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall

Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.

New Jersey Automotive | August 2015 | 7

OUT OF BODY (AND MECHANICAL) EXPERIENCES

Divorce, Italian-Style Divorce is always difficult. But it’s even more so in my case when you consider I’ve been betrayed, abused and made a fool of. There is just no going back from our irreconcilable differences. No, I’m not talking about my wife. I’m talking about my favorite pizzeria.

I first saw it when I was two or three years old. It had just opened down the street from my house, and my dad held me by the hand as we walked into this establishment that smelled like Heaven. He quickly made friends with the owner, who coincidentally had a son the same age as me.

The guy was a wonderful person. Friendly, outgoing…a real paisan! And man, could he cook! The pizza was unlike anything we had ever tasted before (at least that’s what my family told me through the years). It wasn’t like the pizza everywhere else. This one was a true “tomato pie.” Sure, there was cheese, but it was the sauce that made it so delicious. It was a secret recipe that I have yet to see matched all these years later.

8 | New Jersey Automotive | August 2015

by THOMAS GRECO, PUBLISHER

From that point on, this place was THE pizza place for us. Every Friday night, we ordered three or four pies and gorged on what was really a unique eating experience. The place was unique in other ways as well. They were closed on Mondays. They didn’t open on the other days until three or four in the afternoon. And they didn’t deliver or sell slices.

Each pie was made meticulously. The owner pounded out the dough into a large circle. He threw some flour on it and threw it up in the air a few times like you see in every Italian movie. He then put it in a thick black pan and into the oven for a few minutes. When the dough had risen, he removed it from the oven, put the sauce on and then very delicately added thinly sliced, rectangular pieces of mozzarella on top, some salt, pepper and oregano and back into the oven. Fifteen minutes later, we had pizza nirvana.

I’d say that lasted for maybe a good eight years before our new friend sold the place to a nice little bald guy with an Italian accent named Mike. Mike picked up right where the

original owner left off. Made the pizza the same way and it was every bit as good as before. Once I started junior high, my friends and I would stop every Friday afternoon at the place for a pie on the way home. (Our family had switched pizza night to Sundays.) I clearly remember planting the idea of slices to Mike one afternoon, and he said he’d think it over. Pretty soon, not only was Mike selling slices, but he was also opening at 11am so that he could get the lunchtime school kids’ business, opening up a whole new revenue stream! (You’re welcome, Mike, wherever you are!)

By the ’80s, the place was a goldmine. People were coming from all over the state to try the pizza. I don’t know whether Mike decided to get out while the time was right or if he just wanted to retire, but at some point he decided to sell to his protégé, who is still the owner of the place.

Now, I always got along really well with this guy. Hell, I have known him since we were both teenagers. (That’s 40 years, folks.) I have always considered him a friend. But somewhere along the way, he got a little too big for his britches. That’s where it all started to go downhill.

You know, it’s funny; we all tend to associate different things with our memories, good and bad. Ever since I walked into that place, I have said to anyone who asked that that was the greatest pizza on the planet. I think I must have been talking more from memory than reality, because in reality, the pizza had changed. At some point, the rectangular pieces of mozzarella were replaced by the standard

chopped kind that is commonplace in every pizza shop.

Once known as THE place to get the “tomato pie,” their regular pie now came drenched in cheese just like every other pizza place. Still, I remained loyal.

After I had my heart troubles, I obviously had to make some changes to my diet. I didn’t like change, so I still wanted to keep this place somewhere in there. Maybe not as often, but enough so that I still enjoyed it. So I went to the owner and asked if he could make me a special pie, like the old ones I grew up with. Heavy on the sauce, a little bit of cheese and well done. He said sure, no problem. This worked for a year or so, and I was happy - so much so that I made it a Sunday ritual. One “Tommy Greco Special” (see photo at top of facing page) as they came to call it, a Diet Coke and football on the TV. We used to laugh about it - I liked it so well done that he’d say he hated to have other customers see it come out of the oven for fear that they would think they burn all their pies. Things were going smoothly…until the owner hired his brother to work on Sundays. Let’s just say when God handed out personalities, this guy must have been on a smoking break. One Sunday, the pizza would be perfect. The next week, it would be raw. The next, it would be all cheese. I would complain, and the next Sunday it would be perfect. The following Sunday, when my wife went to pick it up (they STILL don’t deliver), he’d forget to make it. This chain of events didn’t happen once or twice. continued on page 58

New Jersey Automotive | August 2015 | 9

PRESIDENT’S MESSAGE

THE BEST LAID PLANS...

by JEFF MCDOWELL

Some of our readers may not know this about me, but I’m a pretty big Civil War buff, interested in everything about the era from weaponry and battle reenactments to marksmanship competitions. Just this past weekend, I participated in a shooting competition with Civil War

10 | New Jersey Automotive | August 2015

weapons, and as I’ve done many times before over the years, I casted my own bullets out of lead. This particular weaponry requires bullets made of 100 percent soft lead; otherwise, the trajectory is compromised. (And that’s not something you want in a marksmanship competition!)

Like I had done numerous times before, I melted down the lead to cast my bullets.

But this particular time, I must have accidentally included a soldered joint that changed the metallurgy of the whole batch. I didn’t realize this until the day of the competition, when all of my bullets went south – literally. And just as you can’t unfire a gun, you can’t unmelt 250 rounds of faulty ammunition. My shot at winning the competition was ruined.

Now, I’ve been doing these competitions and fashioning my own bullets for years. I know the process backwards and forwards, and I know where I messed up.

The only thing to do from here is reevaluate my process for the future, to make sure that mistake isn’t made twice. Sound familiar?

Every day in the shop, many of us go through the same processes that we’ve performed for years – maybe even decades. We have the training, knowledge, equipment and products to do the job right the first time. But sometimes, we become complacent in that knowledge, and that’s where mistakes can happen.

Automotive repair can be such a difficult industry to keep up with – it’s literally changing every day. And that is the number one reason that you can never rest on your laurels. So keep yourself on your toes: Evaluate your processes from time to time to make sure you’re up to speed with the best, most proper and safest methods of doing your repairs. Continue to send your employees — and yourself — for training, to enhance their knowledge and keep the desire to learn more information fresh in everyone’s mind. Join trade associations like AASP/NJ to stay informed on the important issues affecting you, and how industry members are reacting to them. Attend trade shows like NORTHEAST® to learn about the newest products and processes to hit our trade.

And whatever you do, don’t ever start to think that you know it all.

I’ve been shooting for 33 years, and I still made a mistake. And as is true in our industry, one mistake could mean the difference between life and death. So make sure that you are doing everything you can to avoid mistakes in the shop – and to continue your success into the future.

NJA

New Jersey Automotive | August 2015 | 11

12 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 13

EXECUTIVE DIRECTOR’S MESSAGE

Keep the Ball Rolling I have always said that the Labor Rates have been artificially suppressed for so long that we need to triple the rates to catch up to where they should be in today’s market.

Well, on December 10 of last year, New Jersey Manufacturers Insurance Company (NJM) did just that! This company, one of New Jersey’s topranked insurers, announced that they adjusted the Labor Rates they will pay on certain cars to double or triple what they were paying for shops that have made the investment in the equipment, training and certification necessary to repair these cars safely and properly. This was a historical announcement because the highest rate adjustments we usually see in the collision industry are in one- or two-dollar increments.

There is no doubt that the major lawsuits in both New Jersey and around the country played a major part in this landmark decision. However, NJM should be commended for being the first insurer in New Jersey to acknowledge that the artificially suppressed Labor Rates that insurers have been paying for collision repairs are simply not adequate to compensate collision shops to repair cars safely and properly. Since this landmark decision by NJM, other insurers have followed suit and are now most are often willing to negotiate much higher rates - not only on the same vehicles that NJM raised the rates on, but on many other vehicles as well.

Shortly after the NJM Labor Rate increase, the segment on Anderson Cooper 360° aired and brought all eyes on insurer practices across the country. Right after the segment aired showing how several insurers are

14 | New Jersey Automotive | August 2015

shortchanging their insureds, other local news stations across the United States started picking up on the story and warning consumers about how insurer practices like steering, the improper use of used safety-related parts and inferior aftermarket parts are putting people at risk because of these unsafe repair practices.

The improper practices that were exposed by Anderson Cooper 360° have been allowed to exist because of the collision industry’s inability to educate the consumer. These improper practices have the potential to cause vehicle owners serious injury or death in a future collision. However, right after the piece aired, the media seemed to catch on fire, effectively educating the consumer for us.

Yes, some of the issues have been painted with a one-size-fits-all brush, and those issues need further explanation or clarification. For example, there is a place for non-safety related used parts in our industry, and many shops on Direct Repair Programs fix cars properly - even though the DRP guidelines prevent the shop from getting paid for all of the necessary procedures required to repair vehicles properly and realize a fair and reasonable profit. However, for the most part, these reports are right on target. If these types of stories keep running, it will come out that many shops participate in certain DRPs as a defense mechanism to keep insurers from steering work away from their shop, not because they want to be with those programs.

Right now, this industry has an opportunity to expose the injustices that the insurance

by CHARLES BRYANT

industry has pushed on collision repairers for years that have ultimately resulted in shortchanging consumers, often leaving them with unsafe or improperly repaired vehicles. More and more shops across the country are beginning to do post-repair inspections, exposing the results that come from adhering to some of the restricted Labor Rates and repair guidelines found in many of the Direct Repair Programs.

The reality is that it is simply ridiculous for a collision shop repairing vehicles that cost tens of thousands of dollars to do their work for less than what lawnmower and bicycle repair shops charge. (These repairers are paid almost triple the amount to work on more simplistic machines.) The only reason for this is that the collision shops have an insurer standing between them and

The excuse that the insurer refused to pay for safe and proper quality repairs is not a defense for shortchanging the vehicle owner or performing faulty or negligent work.

New Jersey Automotive | August 2015 | 15

EXECUTIVE DIRECTOR’S MESSAGE the customer. And most collision shops just don’t seem to understand that the shop remains liable for negligent repairs; the excuse that the insurer refused to pay for safe and proper quality repairs is not a defense for shortchanging the vehicle owner or

performing faulty or negligent work.

I know very well how hard it is for a small- to medium-sized collision shop to stand up to a major insurer and demand to be paid whatever it takes to repair a damaged vehicle properly while realizing a fair and

reasonable profit. However, the collision industry is at the point that they basically have no choice but to do so, or be prepared to close their doors. I know that sounds harsh, but reality is often referred to as the harsh truth.

The good news is that the ball is finally rolling in the right direction.

There are major lawsuits taking place that are finally exposing the injustices that collision shops are faced with on a daily basis when dealing with certain insurers who simply refuse to pay to repair vehicles safely and properly.

Smaller individual short-pay Assignment of Proceeds lawsuits are also making the news all over the country because the shops are most often winning them. What this shows is that insurers cannot get away with the things they impose on the collision shops and the people they insure as long as people just stand up to them and say, “We are not going to take it anymore.”

The bottom line is that the time is now to make a difference. Trade associations across the country are working hard to support and educate their members and assist them when issues arise. AASP/NJ is one of those associations. However, the strength of the associations is gained by the members they work for. As we so often say, power is in numbers. The more members, the more power the association will have to support the industry they represent. Right now, the ball is finally rolling in the right direction. It is imperative that the collision industry keep that ball moving. One of the best ways to ensure that happens is to join and support AASP/NJ. For those who are interested in discussing anything that I have said in this article or in joining the association, I can be reached on the AASP/NJ Hot Line at (732) 922-8909 or by email at setlit4u@msn.com.

NJA

16 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 17

18 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 19

INDUSTRY UPDATES

“

No reward would compare to the lost efficiency in using this program.

”

Shops Reject PartsTrader Incentives

CT Supreme Court Overturns $34.7M Body Shop Award On July 13, the Connecticut Supreme Court issued a verdict reversing the $34.7 million judgment in a much-discussed class action case against The Hartford Fire Insurance Company. Plaintiffs in the case included the Auto Body Association of Connecticut (ABAC) and hundreds of body shops in the state.

Originally filed in 2003 and eventually certified as a class in a 5-0 decision, the suit (Artie’s Auto Body et al v. the Hartford Fire Insurance Company) claimed that Hartford regularly engaged in unfair business practices by using its in-house employee appraisers and network of DRP facilities to artificially suppress the Labor Rates paid to shops in Connecticut. In November 2009, a Supreme Court jury in Stamford awarded the shops $14.7 million for compensatory damages. Three years later, Connecticut Superior Court Judge Alfred J. Jennings awarded an additional $20 million in punitive damages after considering post-trial motions by the plaintiffs. The Hartford appealed the order, with closing arguments heard last January.

In its decision, the Court stated that collision repair shops are “capable of representing their own interests, and certainly are under no obligation to accept insurance-related work that is not sufficiently remunerative,” adding that the trial court “incorrectly concluded” the validity that the Plaintiff’s claim alleging unfair Labor Rate practices. In a statement issued on July 16, ABAC expressed its disappointment in the ruling, saying that the Court’s decision “marks a step backward for consumer safety, quality of repairs and for the rights of independently operated auto repair shops.”

AASP/NJ Executive Director Charles Bryant offered his views on the case’s controversial conclusion in an AASP/NJ press release shortly following the decision.

“It truly is unfortunate that it went the way that it did,” he said. “The truth is that insurance companies have the might and the money necessary to influence the system more than the collision industry. But if there’s one message I want to get out to the industry, it’s this: Don’t get discouraged because of this one decision; a variety of lawsuits are being won all across the country. However, we should work to keep the litigation under contractual lawsuits instead of class action. Insurers are more likely to win in class action cases – it’s like playing ball in their park.”

The full text of the final verdict is available at http://tinyurl.com/pajm579.

NJA

20 | New Jersey Automotive | August 2015

for Non-State Farm Work

As discussed in last month’s New Jersey Automotive (“The Dealers’ New Dilemma: Has PartsTrader Gone Too Far?”), PartsTrader recently implemented a new pricing structure that charges parts suppliers 3.5 percent on each non-State Farm sale through the program, as well as 1.75 percent for dealerships to sell parts to their own body shop facilities. In addition to leading some dealerships to express concern that they will soon be forced to pass along these additional expenses to their wholesale parts customers, the company’s latest move has prompted industry observers to ask why shops not mandated to utilize PartsTrader through a Select Service agreement with State Farm would voluntarily use the system to process other work in the first place. One possible answer comes in the form of PartsTrader’s Rewards program.

Launched earlier this year, the Rewards program allows repairers to earn points for using the platform for all of their collision parts purchases. According to company promotional materials, shops “earn 10,000 points for every $10,000 in orders [based on Accumulated Usage, as defined in the Terms and Conditions for PartsTrader Rewards].” A shop’s total dollars spent on orders are accumulated over time, meaning that if they have $50,000 in orders, they will earn 50,000 points.

Currently, these points can be redeemed for products offered by participating vendors 6-Hands LLC., Shoot Suit Inc. and Goliath Carts LLC, with PartsTrader promising to add more product providers to the program in the near future. While it is clear that PartsTrader is working to use these incentives to greatly expand its customer base

“

While it is clear that PartsTrader is working to greatly expand its customer base beyond the State Farm mandate, it appears that they are facing resistance in the Garden State.

”

beyond the State Farm mandate, it appears that they are facing resistance in the Garden State.

“No reward would compare to the lost efficiency in using this program,” offers one New Jersey-based Select Service shop owner. “PartsTrader is very time-consuming. It does delay the job, especially when you have to order supplemental parts.”

To illustrate his point, the owner shared a tale of having to wait so long to receive a response through the system that he missed his dealer’s 3pm cut-off time to get the parts by the next day. This delayed the job by an entire day; without PartsTrader, he would have just called the dealer directly and had the order addressed in time. Considering his experience with the product thus far, would this owner use it at his shop without the DRP mandate?

“Emphatically not,” he replies.

With PartsTrader in New Jersey for more than a year now, the above owner is far from alone in his frustration.

“The program’s intent is to be seamless, but it’s not,” offers a longtime State Farm repairer who has used PartsTrader since the spring of 2014. “You just can’t click ‘Submit’ and then click ‘Order’ and expect your parts some kind of acknowledgment that they’re handling it and it’s to arrive. That’ll never work. You need to going to go through. If that’s not done, it just doesn’t work. put the extra effort in the way you would [Using PartsTrader] is similar to faxing a parts order to a have if you were doing the parts ordering dealership and expecting somebody to order it without making yourself...I don’t think it’s made the partsa phone call and actually talking to somebody about it.” ordering process any simpler.

Looking ahead, this business owner says he has no inten“The problem is that you lose that tion of utilizing PartsTrader for non-State Farm work – even if person-to-person interaction with the that means losing out on perks through the Rewards program. people on the other side,” he adds.

“I wouldn’t consider it at this point,” he says. “PartsTrader is “What we’ve done to overcome that is creating more work for my appraisers than if we just followed establish a relationship with one person the process we already had in place. It takes a little bit longer on the other side [at the dealer] to make because they can’t finish the estimate right away. They’re going sure they actually physically pick up the to have to step away from it, then go back and check their phone and call us, email us or give us PartsTrader results and make whatever revisions are needed and go from there – instead of just picking up the phone right then and there and finishing the task completely.”

NJA

New Jersey Automotive | August 2015 | 21

22 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 23

24 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 25

VENDOR SPOTLIGHT by Joel Gausten

IT’S PERSONAL: MAXON HYUNDAI/MAZDA Delivers More than Parts As anyone earning a living in today’s industry knows, technological advances in recent years have had a drastic impact on how we communicate with others. We live in an era of social media, YouTube, video chats...you name it. But are these things really making us feel the same connection we did when we simply got in our cars, drove to a colleague’s place of business and talked with him or her face to face? We can email people all over the world, but does typing “LOL” on a computer mean as much as being in the room when a friend tells a great joke? For New Jersey parts industry mainstay Rick Weber, building personal, one-on-one relationships with customers is as important in 2015 as it was when he first started in the trade back in the early ’80s.

Known to Garden State repairers as the longtime parts director at Maxon Hyundai/Mazda in Union, Weber sees his customers as

Left to right: Rick Weber, Mason,Ryan Weber, Bryan Melara, Lateefah Galloway, Hector Carrasquillo, Ken Creasy, Bruce Dias, Pat Brady (Not Pictured: Danny Rebimbas and JP Pasquale)

26 | New Jersey Automotive | August 2015

more than just numbers on an order. Members of Weber’s parts department make it a point to build genuine bonds with shops, while Weber himself has been known to make personal deliveries to facilities just to be able to check in and say hello.

“I try to put a personal touch on things,” he says. “We try to get to know who our customers are, and we try to develop better relationships with them. I don’t like to view a customer as a number; I like to know their names, visit them and know where their shops are. Some mega-dealers might not be able to do that, whereas we’ve developed a lot of our relationships over a longterm period. Internet programs are making this business an anonymous one, where everything comes down to what is on the computer screen. The personal relationship in business is disappearing, and that doesn’t sit well with me. I’d like to

New Jersey Automotive | August 2015 | 27

VENDOR SPOTLIGHT think that the reason we’ve maintained our business over the years is that we do it the old-fashioned way.”

Not surprisingly, this increasingly unique business philosophy has paid off. Currently serving most of New Jersey and parts of New York, Pennsylvania and Staten Island, the Maxon Wholesale Parts Division has built such a strong customer base that they had to move into a new warehouse last year to accommodate increasing sales. Launched in May 2014, the new facility boasts 8,000-square-feet and $1.25 million in OEM collision and mechanical parts. Thanks to the diligence of Weber’s crew, Maxon was able to make the major transition into its new warehouse without a moment’s interruption in their regular parts services. The professionals who comprise the current Maxon parts team include an assistant warehouse manager known simply as “Mason,” who helps Weber run the general day-to-day operations of the new facility. Parts Manager JP Pasquale oversees the daily service parts operation, while Ken Creasy, Bruce Dias and Hector Carrasquillo offer personalized service on the wholesale phones. Administrative Assistant Pat Brady handles the department’s paperwork, while seven drivers and four warehouse people complete the team. With his department always in a state of growth, Weber credits Dealer Principal Michael Ciasulli for making the parts operation an ongoing success.

“He gives me the tools I need to do the business; he saw this [expansion] as a good move,” Weber says. “The parts department had outgrown its facility in the main dealership, and we needed to make some changes. It was better for all parties. The storage is great; it has really made doing business a lot easier.”

Like many popular parts providers, Maxon Hyundai/Mazda is a regular exhibitor at the annual NORTHEAST® Automotive Services Show. In Weber’s mind, spending the weekend at the Secaucus-based gathering allows him extraordinary access to the clients who make it all possible.

Rick Webe r oversees parts opera the entire tion at Ma xon Hyund ai/Mazda.

“Maybe I see one or two customers on a given day, but I can’t see a lot of those people at one time,” Weber explains. “NORTHEAST gives us the opportunity to see literally thousands of current and potential customers.”

Plans for Maxon Hyundai/Mazda’s future include participation in the just-announced Hyundai Recognized Collision Repair Center program, which has been established by the manufacturer (in partnership with Assured Performance Network) to ensure both independent and Hyundai dealership-owned collision repair centers have the training, tools, equipment and facilities needed to properly repair Hyundai vehicles after they have been involved in a collision.

Despite the economic peaks and valleys common in the parts industry in recent years, Maxon Hyundai/Mazda continues to explore new frontiers in business thanks to the belief that a handshake is often more valuable than an text.

As Weber says, “Price isn’t the only defining part of business. When you do business with somebody, you want to feel welcome; you want to feel warm. You want to feel like this individual or this company really wants and appreciates your business.”

NJA

The Maxon Hyundai/Mazda parts department is open 8am-6pm Monday through Saturday, with the parts warehouse open until 5pm Monday through Friday. For more information, please call (800) 964-7281.

28 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 29

30 | New Jersey Automotive | August 2015

In Memory: Kathy Amato On June 17, the New Jersey collision repair industry said goodbye to an old

friend. Kathy Amato, wife of Board member Joe Amato, Sr. for 35 years and former employee of The Amato Agency, passed away at the age of 68.

“Kathy was instrumental in getting the business off the ground

when it first started,” Joe remembers fondly. “She worked at the

office during the day and then at night worked as a waitress or a

bartender to help us make ends meet. We couldn’t be what we are today without her.”

Two years ago, Kathy retired from The Amato Agency and spent

most of her time in Florida doing things she enjoyed, such as knitting,

reading and traveling.

Kathy is survived by her husband, Joe; six children, Joseph

Amato, Jr., Michele Grosse, Michele Scuorzo, Edward Durnien, Robert

Durnien and Nicole Lewicki; 11 grandchildren; and two great grand-

children. She will be greatly missed by those who knew her and those who were

affected by her legacy.

“All of us at AASP/NJ know how much Joe loved Kathy, and how important

she was to everyone she knew,” says AASP/NJ President Jeff McDowell. “It is a

devastating loss, and she will be sorely missed.”

New Jersey Automotive | August 2015 | 31

32 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 33

A SNAPSHOT COVER STORY by Jacquelyn Bauman

of the Industry:

2015 NJA INDUSTRY SURVEY RESULTS

As an industry publication, it is New Jersey Automotive’s job to keep shop owners informed on what is going on in the automotive repair field. Between covering lawsuits, manufacturer updates and influential national news, this magazine works to keep you in the loop with what’s going on around the country, as well as to let you know what’s happening in your own backyard. That’s why we present to you the 2015 NJA Industry Survey. Communication is hard to maintain in such a competitive industry, so we’ve stepped up to let you in on what everyone else is doing. We asked you, our industry professionals, to let us into your shops for a little while to get a glimpse of what goes on behind the scenes.

Thank you for taking the time out of your day to offer us such valuable feedback and help keep the lines of communication open for the automotive repair industry.

New Jersey Automotive | August 2015 | 35

SURVEY DEMOGRAPHICS

COVER STORY

Shop Locations

We asked and industry professionals hailing from across New Jersey answered.

North Jersey: 53% Central Jersey: 33% South Jersey: 14%

Mechanical Repair

Collision and Mechanical Repair

4%

What best describes your primary business?

3%

M ec Re ha pa nic ir al

Ot

Are you a Private Inspection Facility?

Yes: 13% No: 87%

36 | New Jersey Automotive | August 2015

22 24 Collision Repair

21%

72% Collision Repair

Average years in business

he

Are you a part of any Direct Repair Programs?

Yes: 82% No: 18%

r

How many employees do you have, including yourself?

More than 20

What training have you and/or your employees received over the past year?

45%

I-CAR

17%

34%

ASE Association Seminar

9% 43%

Manufacturer/Vendor training

11-20

21%

19%

Other None

3%

0

6-10

33%

1-5

29%

10%

20%

30%

your current state of business?

1%

4%

17%

One

Six

Two

Seven

50%

As the industry advances, many shops turn first to education to stay ahead of whatever major change is coming around the corner, but where should shop owners look in order to stay current?

“We make sure we’re up to date on our ASE certifications, but we also make sure to visit some dealer-offered training seminars as well,” says one Clinton shop. While ASE is certainly a popular form of training for many automotive repair facilities in the state, I-CAR classes are overwhelmingly the most utilized training.

“Our shop is very pro-education, so we send guys to I-CAR classes for almost every topic they cover,” a Hackensack shop owner shares. “Whether it’s aluminum repair, unibody or refinishing, I get my guys educated.”

Aside from training services like ASE and I-CAR, many shop owners find that manufacturer and vendor training events aid them in their daily work. Classes from OEMs like Mercedes-Benz and Volkswagen were the most commonly cited from manufacturers, while 3M, SRS and Metropolitan Car-o-liner were the most noted for vendor training.

On a scale of 1-10, how would you rate 3%

40%

3%

11%

8%

42% 10%

1%

Three

Eight

Four

Nine

Five

Ten

More than 70 percent of the industry sees today’s business as better than average, with an astounding 42 percent deeming today’s automotive repair field at an 8 out of 10.

New Jersey Automotive | August 2015 | 37

COVER STORY

37% OF RESPONDENTS

50

THINK INSURANCE COMPANIES’ COMMERCIALS ARE MORE INFLUENTIAL THAN NEWS COVERAGE ON IMPROPER INSURER PRACTICES.

46

T

Do you think all of the recent INDUSTRY COVERAGE IN THE MAINSTREAM MEDIA has made your customer more educated on the repair process?

% Yes

No

54

%

his year saw a multitude of national lawsuits impacting the industry take place, which of course caused the mainstream media to finally sit up and take some notice of the issues affecting this field. The most notable media coverage to come out of 2015 was the Anderson Cooper 360° report that aired in February. The effects of this, however, are divisive in the industry.

“I see my customers more and more asking specifically for OEM parts, about the use of aftermarket parts, about Diminished Value, and so on.” says one owner from Roselle Park.

“Consumers are more aware than ever of what’s going on, but it’s just a start,” adds an Edison shop manager. “The ice has been broken. Customers are asking me more questions. They’ve seen past insurers’ ‘don’t ask, don’t tell’ policy that allows the insurer to manipulate repairs, blaming any problems as the shops’ faults. Now they realize it’s been the insurance companies all along.”

Not everyone agrees.

“Customers still do not understand their right to repair or choose their own body shop,” a South Plainfield shop explains.

“Most of them don’t pay attention unless they have had a bad experience,” opines one owner from Newark. “We still suffer from advertising, price competition and bait-and-switch tactics confusing our customers. They still don’t understand the control the insurance industry has over collision repairs.”

38 | New Jersey Automotive | August 2015

Over the past year, do you feel insurers have been more or less willing to distribute Paint and Material reimbursement based off the cost accounting system?

Yes

%

No

Proper reimbursement for materials is one of the most pervasive issues affecting repair shops today. Regardless of the validity of cost accounting programs and their popularity amongst shops, insurers still fight and argue on whether or not to accept the numbers derived from such systems.

“Less and less insurance companies are agreeing to reimburse us based on the cost accounting system,” complains a Bloomfield shop. “They adjust the Labor Rate to compensate, but the rate increase is not equal to the numbers we get from the program.”

A Jackson shop puts the blame for this on the paint companies.

“Many insurers have stopped just using the RMC guides and are not willing to look at actual costs,” he says. “I think the paint companies are partially to blame because there are so many variables in pricing, which causes distrust in our invoices.”

On the other hand, a number of shops have seen an increase in the number of insurers accepting these figures.

“To our knowledge, only Allstate and NJM still insist on not paying a rate based on the P&M calculator,” says a Newark shop owner.

“I definitely think insurers have been willing to pay more, especially thanks to the work of AASP/NJ,” explains an owner from Roselle Park. “Granted, very few pay the full price of the RMC, but it leads to negotiation, which allows us to get a higher dollar amount per hour.”

How has steering affected your business?

It’s one of the most prominent issues affecting the industry today, with 99 percent of collision repair respondents confirming that their businesses have been affected by steering in some way. A shop in Flemington explained that they lose approximately 18 percent of their business each month due to steering, while one Monmouth County shop states that even though they are a Select Service shop, their dashboard numbers are low and their insurance partner sometimes directs work away from the shop.

“The effects of steering are becoming more evident,” says one manager from Ocean. “Our business is down 15 percent so far, and several of our

Have you witnessed a mobile repair shop in action?

What investments have you made into the repair of advanced materials such as aluminum, boron steel or carbon fiber?

longtime customers have been steered away – even relatives of the owner and our employees! I witnessed one

of our employees filing a claim after hitting a deer on his way to work. His insurer told him that we do not guarantee our work, that we would charge more than the insurer allowed, that we would take longer to repair and that they were sending someone to our business to take the car to another shop!”

This is just one example of how an uninformed customer could easily be scared into taking his or her business elsewhere based on the claims of the insurer.

“We aggressively pursue our customers and educate them beforehand as to what to expect from insurers – the good, the bad and the ugly,” notes a Clinton owner who believes the key to maintaining customers is through active education. One shop from Point Pleasant agrees.

“You have to be persistent,” the manager states. “Insurers want to send the insureds to their DRPs, so we hold the customer’s hand and inform them about their right to choose.”

64%

Tools and equipment

77%

Training Certification fees Other

22%

9% 23%

None

T

0

10%

20%

30%

40%

50%

60%

70%

80%

he field of automotive repair is constantly evolving, adapting to new demands from consumers and regulations from the government. Staying ahead of the curve requires a certain level of investment, but where do shops begin?

“When all of the buzz about aluminum started, we knew something big was coming,” recalls a Hamilton shop owner. “We started out with local seminars first to learn how an impact affects the various metals coming onto the market. Once we saw how different it would be, we made the investment in official training.”

Even though 77 percent of the New Jersey automotive repair industry has started to make at least minimal expenditures into advanced materials preparedness, there is still a large part of the market that has not yet touched that investment. While some shops have not yet invested simply due to lack of funds (as one Long Branch shop cited), others are simply skeptical of the value that such a payment would provide.

“A lot of the ‘investments’ I’ve made in the past have yet to pay themselves off,” explains a shop owner from Paramus. “I feel like independent shops investing in this technology are doomed to fail because the dealerships that are making the move to bigger, newer and fully sustainable body shops are going to take the work away from us.”

One thing is for certain – the changes are coming, whether shops are ready or not.

New Jersey Automotive | August 2015 | 39

COVER STORY

A year after its launch, how has PartsTrader affected your business?

I

ndustry publications in the past year have been doused in news and hype about State Farm’s PartsTrader program.

A year after its launch, we touched base with local shop owners to see the impact of this insurer-mandated parts procurement system had on the New Jersey market. An impressive 41 percent of respondents emphatically stated that they have not been affected by PartsTrader, simply because they refused to participate.

“We were one of the first shops in New Jersey to get off of the State Farm program after 25 years,” says one shop.

An Edison owner agrees, stating that his shop “turned down State Farm’s Direct Repair Program solely because of PartsTrader.”

Of those shops that have been affected by the program, a number of issues were cited, such as paying for business that was previously already a part of the shop, more administrative work, advanced technical problems and confusion, increased and convoluted steps added to the repair process and a much slower overall turnaround time on repairs. Only 23 percent of respondents saw no changes to their business due to PartsTrader.

What is your current Labor Rate?* More than $56

22%

$50 - $55

73%

$50 or less

5%

What do you think your Labor Rate should be?*

75%

More than $80

18%

$65 - $80

7%

$50 - $65

Lowest recorded Labor Rate: $48 Highest recorded Labor Rate: $75

*Collision shops

40 | New Jersey Automotive | August 2015

What automaker’s parts do you find the most difficult to get?

Saab, Chrysler, Subaru and Ford

What automaker’s parts do you find the easiest to get?

Toyota, Audi, BMW and Chevrolet

Approximately how much do you spend on parts annually? $1-$100,000: 4% $101K-$500K: 58% $501K-$1 million: 21% More than $1 million: 17%

Approximately what percentage of OEM parts do you use during your repairs?

4%

100 percent

% 12 25 percent

17%

67%

75 percent

50 percent

The debate is almost as old as the industry itself: When is it acceptable to use aftermarket parts and when is it necessary to use OEM? Aside from the very few shops that state they only use OEM parts in repairs, for most New Jersey shops, it depends on the circumstances. From the type of part to the age of the vehicle to who is paying for repairs, a variety of factors peppered the answers to this question of the industry survey. While age and condition of the car was a prevalent factor in 29 percent of the answers, an overwhelming 50 percent note that insurance policies have a significant impact on whether or not an aftermarket part is used in a repair.

“We use OEM every time unless we are forced to by insurance companies,” says a Monmouth shop. “We try to price match as much as possible to prevent using aftermarket parts. For some OEMs like Volkswagen and Mercedes-Benz, we have to use manufacturer parts.”

“The only time we use aftermarket parts is when it’s specifically asked for by the customer because they’re trying to save money,” says a Hunterdon county shop owner. “If their insurance company writes for them and won’t pay for the OEM part, we make the insured sign a form stating that they understand that we’re using aftermarket parts due to the insurance company and that they will hold us harmless in the event of an issue from using those parts.”

Where do you look to hire new employees?

With the average age of technicians in the industry well over 50 years old, getting new blood into the field has never been so important. Of the shops surveyed, 45 percent post jobs in order to find new talent, whether it be online at craigslist. org or indeed.com or in print such as in the newspaper. However, this simple solution does not always equal success.

“There is very little new interest in this industry,” complains one Riverdale owner. “We used to see people walking in every couple of months looking for work, but we haven’t had anyone walk in in a long time. There is little incentive for younger people to want to get involved in this industry because insurance companies have made it impossible to be paid fairly.”

Yet some shop owners don’t believe the blame can be displaced so easily. A shop owner from Manalapan claims that he can “get employees anywhere” and that the industry has “plenty of quality technicians around being abused by other shop owners who are trying to increase their bottom line at the employees’ expense.”

WHAT DOES IT ALL MEAN?

From steering to insurer interference to the Labor Rate to the lack of return on investments to the lack of regulations in the industry, the automotive repair field is obviously plagued by issues.

“The cost of business and operating a shop keeps climbing while the prevailing rate stays stagnant,” says a manager from Hackensack.

“The rates don’t increase when costs to be successful do, like it happens in every other industry. That’s why there are so few new owners.

Why invest when there’s such a small return?”

“There’s constantly tortious interference from insurance companies,” explains one Lebanon shop. “It’s a conflict of interest when they deal directly with the shops. There should be mandated third-party appraisers. We can’t keep working under their thumbs the way we are now.”

The abysmal Labor Rates and insurer interference were certainly the prevailing opinions as the most pressing issue affecting shops today, yet one Woodbridge shop owner sees things a little differently.

“In all honesty, the biggest problem with the industry is ourselves.

We’re our own worst enemy,” he accepts. “When we don’t stand up for what’s right, we let the insurance companies take advantage of us. We let our businesses be controlled by an outside source. We’re so dependent on the insurers to get us money that we’re willing to cut corners and reduce costs on repairs to make them happy. We have to run and maintain profitable businesses. Even the best shops’ profit margins are laughable next to those of other industries. It’s embarrassing, and it’s all our fault.”

Regardless of why things in the industry are the way they are, one thing is for certain. NO CHANGE IS GOING TO OCCUR BY TAKING ON THE FIGHT ALONE. Hopefully, this survey has provided some insight into the current state of the New Jersey automotive repair field, and has shown why it is so important to stay informed and join an association like AASP/NJ. You’re not alone in your suffering; you shouldn’t be alone in your battle, either.

NJA New Jersey Automotive | August 2015 | 41

42 | New Jersey Automotive | August 2015

Networking.

Education.

Innovation.

Technology.

IT’S ALL HERE. AASP/NJ’s

March 18, 19, 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ

www.aaspnjnortheast.com New Jersey Automotive | August 2015 | 43

44 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 45

NATIONAL NEWS by Joel Gausten

SEMA 2015 to Host Largest

Repairer-Driven Education Series Yet

With three months still to go before the arrival of SEMA 2015 (November 2-6, Las Vegas Convention Center), the Society of Collision Repair Specialists (SCRS) is already celebrating their most extensive presence yet at the world-renowned event.

By mid-July, SCRS’ SEMA-exclusive Repairer Driven Education (RDE) Series already featured more classes than ever before – a direct result of attendee feedback on the kind of classes they wanted to experience at the Show. Additionally, pre-Show registrations and Collision Repair & Refinishing exhibitor signups were already at an all-time high.

“It all continues to trend in the right direction,” says SCRS Executive Director Aaron Schulenburg. “There is a continued growth in interest by exhibitors who want to be in front of the right attendees.”

In addition to boasting hundreds of new and returning vendors to the SEMA Show floor, the Collision Repair & Refinishing section of the show will feature the return of the OEM Collision Repair Technology Summit, a day-long event that debuted last year to high praise from industry stakeholders. Slated for November 5, this year’s Summit will focus on emerging trends in vehicle construction and technology and how both of those aspects influence vehicle repairability and collision industry preparation.

The program is designed to put SEMA Show attendees in a room with innovators in automotive structural design and technology,

46 | New Jersey Automotive | August 2015

providing one of the most unique networking and learning opportunities available to the collision repair industry.

The 2015 program will provide three different segments, which can be selected individually or collectively as part of the RDE Full Series Pass. The sessions will feature companies and individuals with rich histories of producing sophisticated advancements in the automotive and collision repair fields, and will highlight architectural and technological developments in modern vehicles, and how those advancements intersect with the repair process.

“If we can put shops in the room with innovators in the materials industry, the automaker realm and people who are responsible for the design of these vehicles, it will help them have a better understanding of what the industry needs to do when these vehicles end up in the shop and what we really need to do to be properly prepared to fix these cars,” Schulenburg says.

Naturally, SCRS’ desire to provide meaningful educational content has resulted in a strong focus on some of the industry’s hottest topics, including consolidation (“Don’t Let Consolidators and MSOs Steal Your Insurance Work,” hosted by Michelle Nelson of BB Automotive) and post-repair inspections (“Post Repair Inspections [PRIs],” hosted by Larry Montanez of P&L Consultants). While it is virtually impossible for a repair professional to look at an industry magazine or website these days without reading story after story about yet another major chain buying up an independent business, Schulenburg promises that “Don’t Let Consolidators and MSOs Steal Your Insurance Work” will offer a fresh perspective on an ever-controversial topic.

“I think that a lot of the stories out there generate a sense of hopelessness and helplessness in the industry, which simply isn’t true,” he offers. “Independent collision repairers are still the biggest producers of collision repair work in the United States, and there are a lot of independent collision repair businesses that are very successful in competing in those highly competitive marketplaces. What we wanted to do was be able to help shops find

ways that they can capture and retain business and compete with consolidation, rather than feeling like the only option was to sell out into it.”

With the outspoken Montanez in tow, “Post Repair Inspections (PRIs)” guarantees to showcase straight talk on one of the auto body community’s most pressing issues.

“With the exposure that post-repair inspection receives in the industry via YouTube, and nationally on things like CNN’s coverage of the industry or the numerous local news stations picking up similar stories, there is a lot more growing attention on it now,” Schulenburg observes. “It’s definitely going to be an area of the industry that is going to shape things going forward to some degree. If the industry is policing itself relative to repair quality, it’s going to cause people to focus more on it. For us, the objective shouldn’t be to catch insurers who aren’t paying for work or catch shops who aren’t doing work, but to influence a change in behavior that gives the consumer a better repair and a more appropriate claims settlement. The objective of the session is to help shops understand where their quality-control processes may be failing and how to correct that so there aren’t post-repair inspection issues down the road.”

Other RDE speakers already signed on to participate in this year’s program include SCRS mainstay Toby Chess (“Repair Planning Considerations for Welded Components,” “Welding Technologies - A Comprehensive Tutorial on Modern Equipment”), Mike Anderson of CollisionAdvice (“Business Financials: Balance Sheets, Income Statements and Cash Flow”), Dave Gruskos of Reliable Automotive Equipment (“Removing, Replacing and Joining Advanced Materials”), Lee Rush (“In-Process Quality Assurance,” “Process-Driven Collision Repair”) and John Niechwiadowicz, QLC, Inc. (“Understanding Numbers and What They Tell You About Your Growth Opportunities”). A complete list of RDE classes and SCRS-related SEMA events (as well as registration information) is available at http://tinyurl.com/ok53z9z.

NJA

New Jersey Automotive | August 2015 | 47

48 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 49

50 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 51

NO BRAKES by Ron Ananian

WRITING ’BOUT ANYTHING

There is no shortage of topics to discuss on the subject of automobiles and their repair. Many elements of our day-to-day work make for good after-dinner conversation (should we choose to keep their memory alive). BUT one of the best pieces of our puzzle is the life lessons we learn. After 43 years of this, I recognize that now I have stored a vast amount of knowledge and wisdom, as well as completely useless information. I spend my moments daydreaming and thinking about useless information and how can I make it work for me. (This usually happens at 2am, sitting up in bed suffering from ARI…Auto Repair Insomnia. ARI, by the way, has only two known cures – death or a daily 2mg dose of don’tworry-about-it.) If I do figure out how to make it work, I will let all of you know the answer, as I am sure all of you are in the same boat, er, car as me...

But auto repair is, at best, a difficult phenomenon to explain.

If you sit and tell your family members about the events of the day, they look at you as if they’re questioning your mental stability until they see it for themselves.

We recently had this exchange at the counter with a walk-in customer...

Customer: “I have a 2008 Jeep, and the brakes are locking up. It’s not quite as bad as last year when they caught fire, but I can tell it’s happening again. When the last shop took care of it, they didn’t do a great job.

When can I bring it in?”

Me: “How about tomorrow?” (It was just after noon when he walked in.) “We can take a look first thing in the morning.”

Customer: “Will you need it all day? How long will it take? About an hour, you think? I really need it back right away; I have to go away for the weekend. If you don’t think you can work on it right away, then maybe I’ll take it back to the other shop even though then didn’t do a great job on it and give him another chance.”

It was a polarizing moment. The energy in the air told me that he who spoke next better say the right thing and be firm.

(There’s that wisdom cropping up.) I handed him my business card and told him if he ever gets tired of doing the wrong thing

over and over again, he should call and set up an appointment. He smiled and left.

People are stuck in their way of seeing their own issues, and that takes a hard turn in a repair shop. There are so many things wrong with that encounter. How about walking in and introducing yourself? How about starting with, “Hi, do you have a minute?”

How about considering that the shop is not standing there waiting for you to come in, as they have OTHER customers and cars to deal with? The world is imminently self-involved; part of our job is to separate customers from their issues to eventually repair the car. It’s sad, but true…

THE BOTTOM LINE IS...

Auto repair is a very demanding career – physically, mentally and financially. But it can also be a very rewarding one. You just need to keep your eyes WIDE open ALL the time. WE have to repair cars and counsel customers; it is a very large part of our process in order to continue doing this and be successful. Our wisdom will always carry the day.

I recently spoke with the new manager of the local auto parts store, a young man only about 24 years old. When I asked him where he sees the future of the industry going, it was nothing but positive – some of it in the wrong areas, I have to say. He didn’t see the advent of the computer in the car as a problem. He saw that fluids last longer, engines run better with less upkeep and the car in general is light years better from just 10 years ago. Will there always be cars to repair? Yes, but what the repairs will look like is a subject for another day.

My point is, in youth there is optimism, and in age there is wisdom. Been there, done that, so many times. For the record, it’s wisdom and not burnout as long as you still keep trying. So the question is, DO YOU HAVE WISDOM? Or are you burnt out?

Carry on and remember (if you haven’t yet ) to take your 2mg of don’t-worry-about-it today. It couldn’t hurt… NJA

’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.”

Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

As of July 25, “The Car Doctor” can be heard LIVE in the New York market. Tune in Saturdays, 2-4pm on WRCR AM 1700 for new shows!

52 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 53

54 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 55

ARANJ 2015 Officers President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com

1st Vice President Ian Szoboszlay Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com 2nd Vice President Darryl Carmen Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com

3rd Vice President Joe Goodman Leesville Auto (732) 388-0783 joeg@leesvilleauto.com Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2015 Board of Directors Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Mike Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com

Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net

Mike Caputo Lacey Used Auto Parts, Inc. (609) 693-0898 laceyautomike@aol.com Bert Witcraft Auto Express (856) 728-8367

Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto (856) 694-1555

Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com

ARANJ

The Automotive Recyclers Association of New Jersey

Legal Update Legislature Considers Bills Mandating Paid Sick Leave

Two bills that would require employers to provide paid sick leave to employees have passed committee scrutiny in both the State Senate and the Assembly. On June 22, the Senate Labor Committee approved Senate Bill 785 (S785), while the Assembly Labor Committee and Assembly Budget Committee approved Assembly Bill 2354 (A2354) at the end of last year. Democrats have announced that the legislation is one of their top priorities for this year.

The Bills require that employers provide employees with one hour of paid sick leave for every 30 hours worked. However, small employers (defined as employers with less than 10 employees) may cap the amount of sick leave accrued at one time (or carried over from at least the prior benefit year) at 40 hours. (The Bills may need to clarify whether leave time can be carried over for multiple years or only to the immediately subsequent year.) For employers with more than 10 employees, at least 72 hours must be offered or allowed to be carried over. The Bills allow sick leave to be used for a number of medical issues related to the employee or employee’s family, some of which are already covered by other statutes allowing for paid leave. These include: • time needed for diagnosis, care, treatment of or recovery from mental or physical illness or other adverse health condition or preventative care; • time needed to aid a family member for those medical issues identified above; • the absence necessary due to circumstances resulting from the employee or a family member being a victim of domestic or sexual violence; and • time during which the employee’s workplace or the school or daycare of a child of the employee is closed due to an epidemic or public health emergency.

The employer may require reasonable documentation that the leave is being taken for one of the above purposes, but the employer must also pay all out-of-pocket expenses incurred by the employee to obtain the documentation. The Bills prohibit an employer from taking any retaliatory personnel action or from discriminating against an employee for taking sick leave as provided in the Bills. Employers are also required to maintain records of hours worked and sick leave taken by employees over the previous five years and make the records available to the Department of Labor and Workforce Development. Lastly, the employer must notify each employee – and post the notification – of their rights under the Bills.

Although the Bills are generally the same, there are some differences that may provide a point of contention between Senate and Assembly leaders. For example, S785 allows employers to forgo the accrual process and offer the full amount of sick leave one would earn throughout the year on the first day of the benefit year, while A2354 does not provide employers with that option.

A more controversial difference is the treatment of similar local ordinances under the Bills. A2354 states that it does not preempt local governments that may have enacted, or may in the future enact, ordinances that provide sick leave that is even more favorable to employees. On the other hand, S785 explicitly preempts any subsequent county or municipal ordinance or resolution pertaining to sick leave. However, it does not preempt those ordinances or resolutions that exist as of the effective date of S785.

For employers that already offer paid sick leave, these Bills take it out of their hands and place it with the Legislature. As a result, employers will likely be subject to increased recordkeeping and notice requirements, as well as the threat of penalties or even a disorderly persons offense for failing to comply. The Bills also create questions. For example, it is uncertain how the Bills will interact with the New Jersey Family Leave Act, the federal Family and Medical Leave Act or the New Jersey Security and Financial Empowerment Act, which allow for leave for some of the same reasons permitted under the Bills. In addition, the anti-retaliation provisions may make it harder, or at least riskier, to terminate individuals who abuse their sick leave. For business owners, these Bills create a number of pitfalls.

For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.

56 | New Jersey Automotive | August 2015

Wharton Insurance Briefs An ARA Member Manual material handling is one of the largest causes of lost-workday injuries in the scrap metal industry. About 20 percent of all injuries happen because someone lifted, carried, pushed or pulled something the wrong way or lifted beyond his or her capacity.

The most useful part of your body in handling materials safely is not your back or legs, but your head. Untrained workers often do the job the hard way and soon get tired, which leads to possible injury. Below are some suggestions you can incorporate into the training of your employees on manually lifting an object:

• Size up the load. Seek assistance if you think you need it.

• Get close to the load, with one foot alongside it and one foot behind it for balance. Get a firm grip on the object with your palms, not your fingers.

• If possible, squat to the load, keeping your back straight – not necessarily vertical, just straight.

• Draw the load close to you, with the weight centered over your feet.

Test to see that it’s not too heavy.

• Lift by straightening your legs, avoiding quick, jerking motions.

Your legs should provide most of the power to lift, not your back.

• Avoid twisting with a load. Instead use your feet or shift to change direction with it.

• When lifting above waist height, set the load down on a table or bench, shift your grip and then lift again.

• Lifting comfortably is most important. Judge the most comfortable position for yourself.

Workers should be trained on proper and safe material-handling techniques either manually or by using mechanical means. The use of correct handling techniques is one of the ways to help reduce injuries.

As always, if you have any questions regarding this article or your insurance program, please contact me.

Mario DeFilippis, AAI, Vice President (800) 221-0003 (ext. 1320) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

New Jersey Automotive | August 2015 | 57

Mike Lovullo Distributor for

and

Micro-Mix Paint and

Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.

CALL Office: (973) 696-3176 or Cell: (201) 452-0987

Welcomes our newest members: A1 Auto Center, Inc. Sayerville, NJ

New Auto Boy Shop, Inc. Newark, NJ

Wreck-O-Mend Freehold, NJ

58 | New Jersey Automotive | August 2015

OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from page 9

It happened on a monthly basis.

So I tried to make nice. One Sunday, he made it perfectly. I took a picture of it, printed it out and brought it down to him. I said, “This is how I like it. Hang the picture up and use it for a reference so we don’t have these problems.” Keep in mind I was still raving about this place to everyone.

In fact, I even put them in the NORTHEAST® Conference Journal as the ONLY pizzeria to go to when people from out of state came to the show! A week after I saw him put the picture up, it was gone. The next Sunday, my wife came home and the pizza was so undercooked the cheese was still white. That was it. I got off the couch in the middle of a Giants game (I NEVER miss a minute of a Giants game) and ran down there and threw the pizza on the counter and screamed, “What the f#$k is this????” I got the Welcome Back, Kotter Vinny Barbarino response: “What? Where? How? I don’t know.”

The owner happened to be there and he came running out. “Tommy what’s the matter? Oh, no problem, we’ll take care of it. We’ll make you another one. Come back in an hour.” A f#$king hour?! I left and didn’t go back for two years.

But I am a weak man. There is one guy who works there who is an absolute sweetheart. And he knows how to make a pizza. I just made sure he was working when I’d want my fix and all was right in my pizza world. I’d see the owner maybe once or twice a year and he’d act like nothing ever happened. Up until last month.

We were giving my kids a graduation party and we decided to have it catered. I asked the kids what food they wanted, and you can guess who they chose. I just went in and asked the good guy to tell the owner we wanted to book the party and to call my wife to go over the menu. A week went by. Nothing. I asked again. “He didn’t call you?” I was not going to put my buddy in the middle of this, so I gave the owner a few more days. He finally called her and they set the menu, date, time and place.

The party was scheduled to start at 7pm. The owner promised my wife the food would be there by 6:15 and ready by 6:45. At 6:40, the truck rolled up in front of the hall. It was the owner’s other brother.

“You were supposed to be here at 6:15!”

“What? Where? How? I don’t know.” (The family must be huge Travolta fans.)

He also neglected to bring tablecloths. So here we were, 15 minutes before the party was starting, and this guy was alone setting up a dozen hot trays, running around looking for tablecloths and bumping into guests as they were arriving. And his bigass truck was blocking the entrance all the while.

That was the last straw. I was livid.

I called the place and demanded to speak to the owner. Since they still use rotary phones and have no hold buttons, I heard the girl put the phone down and proceeded to listen to muffled voices, dinner plates and pizza ovens opening and closing for five minutes. I hung up and called back.

“This is Tom Greco. Put him on the phone immediately!” More muffled voices and plates. “Hey Tommy, how’s it going?”

How’s it going?

I read him the riot act. He told me MY party started at 7:30. He said tablecloths were on the way. He said everything’s fine. God, I’m lucky my chest didn’t explode there and then. I said, “How long have we known each other? Is this the way you treat your customers? Never mind that we’ve been friends for 40 years???”

“What? Where? How? I don’t know.”

I hung up on him and tried to calm down. I did for a while. I was able to enjoy the party for my kids’ sake. That is, until the brother came back to clean up and asked to be paid. I said…

“What? Where? How? I don’t know.”

I’m never going back.

NJA

New Jersey Automotive | August 2015 | 59

60 | New Jersey Automotive | August 2015

New Jersey Automotive | August 2015 | 61

ADVERTISERS’ INDEX Acme Nissan ........................................4

Glen Toyota ..........................................OBC

Porsche Group ......................................54

Amato Agency ......................................25

Hyundai Group ......................................42

PPG ......................................................3

Audi Group............................................32-33

JMK BMW ............................................17

Prestige Motors ....................................31

Axalta Coating Systems ........................6

JMK Saab/JMK Fiat ..............................9

Princeton BMW ....................................11

BMW Group ..........................................44-45

Klean Frame..........................................57

Princeton MINI ......................................62

Bridgewater Acura ................................49

Levittown Ford ......................................19

Sherwin-Williams ..................................34,41

Cadillac of Mahwah ..............................14

Maxon Mazda........................................29

Subaru Group........................................22

CCC Comp-Est ......................................58

Maxon Hyundai......................................27

Town Motors ........................................30

Classic Audi ..........................................10

Mazda Group ........................................48

Toyota Group ........................................53

Continental Auto Parts ..........................51

Mercedes-Benz of Freehold ..................51

Toyota of Hackensack ............................IFC

Empire Auto Parts..................................57

MINI of Manhattan ................................8

Valtek....................................................47

FASTLIGN® ..........................................60

MINI Group............................................24

VIP Honda ............................................49

Flemington Audi ....................................5

Mitsubishi Group ..................................55

VW Group ............................................50

Flemington Group..................................IBC

Mopar Group ........................................61

Westbury Jeep Chrysler Dodge Ram SRT...18

Fred Beans Parts ..................................23

NORTHEAST® 2016 ............................43

Wheel Collision Center ..........................47

Future Cure ..........................................16

NUCAR..................................................12-13

Grand Prix Subaru ................................19

Paul Miller Audi ....................................59

62 | New Jersey Automotive | August 2015