New Jersey Automotive December 2022

CENTRAL AVENUE

CHRYSLER JEEP 1839 Central Park Avenue Yonkers, NY 10710

Order Hot Line: (800) 967-5298 Fax: (914) 361-1508 www.centralave.com COLLISION

DOVER DODGE 158 S. Salem St. Dover, NJ 07801

Order Hot Line: (888) 676-6727 Fax: (973) 366-0757

EASTCHESTER

CHRYSLER JEEP DODGE 4007 Boston Road Bronx, NY 10466

Order Hot Line: (914) 597-7018 Fax: (718) 881-3014

FRANKLIN SUSSEX

MALL 315 Route 23 Sussex, NJ 07461

Order Hot Line: (888) 528-2200

NIELSEN DODGE CHRYSLER JEEP RAM 175 Route 10 East Hanover, NJ 07936

Order Hot Line: (877) 890-9545

P.O. Box 734 Neptune, NJ 07753

EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com

2021 - 2023 OFFICERS

PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

COLLISION CHAIRMAN

Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.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

Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com

Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com

Sam Mikhail, Prestige Auto Body 908-294-1985 /prestige@goldcar.us

Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.com

Danielle Molina, Perfect Bodies Collision Center (973) 777-7881 / Danielle@PerfectBodiesCollision.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com

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

Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

NORTHEAST® SPOTLIGHT

AROUND THE INDUSTRY 18 TGP Presents Industry Icon Award to Collision Advice’s Mike Anderson at SEMA 2022

NATIONAL NEWS 18 Nominate an Influential Woman for the Women’s Industry Network’s 2023 Awards

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 40 Wharton Insurance Briefs by Mario DeFilippis

Psycho Popcorn Man

I have written about my love of popcorn many times in this space. It seems like I am on an everlasting search for the perfect popcorn. Allow me to recap:

I eat one meal a day, usually between 6:30pm and 9pm. Then around 2am, I treat myself to a snack. Being the picky spoiled baby I am, there are only four things that I choose for that snack, most of which my cardiologist would not sign off on. Coming in at number four are peanuts. You know, the salted ones that come with Mr. Peanut on the can. Number three is pistachio nuts. I used to love the red ones, but they always left my hands looking like they’d been dipped in red paint. I believe the brand we used to get when I was a kid was Skinners. They came in a plastic bag and were salty as hell. I don’t think I’ve had as good a pistachio since they went out of business. Number two on my snack list is Wise potato chips. Even though I enjoy Lays, I grew up with Wise, and they are still my favorite despite being inconsistent. (Every other bag tastes stale, which my dogs prefer since they end up

getting most of it.)

by THOMAS GRECO, PUBLISHER

However, the snack that I rely on most nights is popcorn. I have gone through many types and brands over the years, but all the best ones seem to go out of business or change their recipe (that could be my imagination, but still). A few years ago, I found Boom Chicka Pop sea salt popcorn, which is my go-to snack when I’m lazy. Don’t get me wrong, it’s good popcorn, but it’s one of those “healthy” snacks. You know, the ones that usually taste like cardboard. Boom Chicka Pop doesn’t taste like cardboard exactly, but it does fall short of the kind of popcorn you might find at a movie theater.

So, about a year ago, I set out on a journey to find the best popcorn maker that could duplicate the old days of great movie popcorn. I dove deep into Google to find the best way to cook it and what ingredients to purchase. After some solid research, I decided on the West Bend Stir Crazy Popcorn Machine, Orville Redenbacher’s Gourmet Popcorn Kernels, Gold Medal Flavacol Seasoning Popcorn Salt and Orville Redenbacher’s Popping & Topping Buttery Flavored Oil. (I messed up as usual on this order, and they sent me 36 bottles instead of one.)

I waited excitedly for my perfect popcorn plan to come to fruition. All the stuff arrived, and I was off. It took me a couple of times, but by the third batch, I was amazed. The popcorn was better than the movie theater’s! I knew I had hit the jackpot when the aroma woke up my son and he came down to grab a handful. I was in popcorn heaven. I had gotten the process from plugin to final kernel pop in about six minutes. And it was easy to clean!

Of course, it didn’t last.

Around August of this year, the popcorn maker started acting up. I would put in all the ingredients, and it would take 20 minutes to pop. Even then, only about a third of the kernels popped. One of the obstacles for someone who lives my lifestyle is that when there’s a problem, there’s no customer support at 2am. So, I took to my iPad and dashed off a letter to West Bend support. Four days later, I had not gotten a response. So, I emailed again. This time, they answered:

Thank you for reaching out to us. I’m sorry to hear that you experienced this, but don’t worry, I’m here to help. Kindly respond to this email with a photo of the PROOF OF PURCHASE of your machine so we can verify the warranty coverage

The Secret Door

My painter and I recently attended refinish training down in Maryland, along with another painter from a big MSO who is ranked 14 of 48 in his market. Since he’s ranked so high, we were pretty dang surprised when he shared his belief that it would only require seven ounces of paint to refinish an entire bumper…and that’s when we found out that his ranking is largely based on his ability to use less product. That’s how they’re compensated and rewarded.

This guy, who believes he’s a top-notch refinish expert, has been brainwashed into dust coating the bottom, spraying it down and feathering it. So, there’s never enough paint on the bottoms, but he insisted that’s “fine.” They’re Bentley-certified, yet they’re using a

by JERRY MCNEE

have been unfair to him since the damages he caused were miniscule compared to what was truly needed; they were just willing to overlook all sorts of stuff to get the car out the door.

And that’s the same problem a lot of shops have. We’re so focused on getting this car out the door (and the next one in) that we aren’t paying attention to all the details – and that’s a really huge problem. Then, we’re coming up with all sorts of excuses. We often blame low labor rates when we can’t come to an agreement, but when there’s a $10,000 discrepancy (and we all know that occurs way more often than it should), there’s a lot more going on than just the hourly rate. That cost variance is coming from everywhere!

completely different paint system that’s not approved by Bentley, without the right products and processes. It’s sickening, but it’s just part of the insurers’ process, right?

It’s just like the time a customer brought their car in for a minor repair – and all hell broke loose! Turns out it was a total loss, not because of the recent collision, but because this was the third repair. The first two repairs completed by other shops in 2018 and 2019 weren’t performed properly. It should have been deemed a total loss back in 2018, but those shop owners were too busy working in their business to work on their business.

When I talked to the insurer, they acknowledged that this wasn’t the first problem of this caliber that they’d experienced with this particular shop, yet that shop remains in their network. I’d be kicked in the teeth for repairing a vehicle that way. And I’d deserve it!

That second shop owner felt horrible and even offered to cut a check for the damages, but that would

“The insurer told us how to fix it. That’s how they wanted it done.” Well, you’re the one who is responsible for that repair. The liability is on you. Insurers have three options: replace, settle in money or elect to repair. Even though they often behave as though they elected to repair, that’s rarely the route they take. Typically, they settle in money, leaving the shop fully liable, yet they want to control the repair.

Whose business is it? It’s yours, and you’re liable. And you’re the one who needs to make the decisions. But we get so busy that we just keep shoving concerns down in the corner, closing it up behind the secret door in our basement that nobody knows exists. And we close that door like nothing ever happened, but there’s only so much space down there. Eventually, that secret room is going to fill up and overflow…and all those mistakes are going to come back to haunt us. Maybe we should think about cleaning it out before that happens.

A State of Emergency

It’s one thing for auto insurance claims to be delayed due to an emergency. It’s quite another for claims to be intentionally delayed in order to force an entire industry to accept a whole new way of doing business, like it or not. When communications that are normally conducted via phone are cut off and calls pertinent to a claim settlement are intentionally ignored, that’s a whole different thing. Well, based on the reports coming in through the AASP/NJ Hotline, that’s exactly what is currently going on.

Collision shops are reporting that insurers are ignoring their phone calls and messages requesting supplemental inspections as the result of ridiculously low estimates being prepared by insurers based on photos. The fact is, photo estimates may be the way of the future, but it has become blatantly obvious that major collision damage simply cannot be accurately appraised by photos with the technology presently available. Yet, insurers are insisting that they will no longer send an appraiser to personally inspect a damaged vehicle. This is taking place without any change in the law or regulations that would allow for photo estimates instead of a personal inspection of a damaged vehicle. In fact, the New Jersey Auto Body License Law prevents a licensed collision shop from preparing an estimate without personally inspecting the damaged vehicle, PERIOD! A collision shop can be fined for this practice and can actually have his or her auto body license suspended or revoked for violating this provision, which states:

C.39:13-4 Fine; refusal to grant suspension, revocation of license.

4. The director may fine or refuse to grant or may suspend or revoke a license of an auto body repair facility for any of the following acts or omissions

by CHARLES BRYANT

related to the conduct of the business of the auto body repair facility:

f. Making appraisals of the cost of repairing a motor vehicle which has been damaged as a result of a collision through the use of photographs, telephone calls, or any manner other than personal inspection;

This standard was put in the New Jersey Auto Body License Law for good reasons. One of those reasons was because a proper estimate cannot be prepared by looking at photos of a seriously damaged vehicle. Another is that when an experienced collision shop personally inspects a damaged vehicle, it is only too often that the shop will warn the consumer that the vehicle is unsafe to drive and can point out the reasons why that is the case. Since the personal inspection of a damaged vehicle is the standard for the people licensed by the state to perform repairs to collision damaged vehicles, insurers should be held to at least the same standard.

Instead, insurers appear to be taking full advantage of the problems that have developed as a result of the COVID-19 pandemic. Although it appears that the brunt of the pandemic is over and few people are even wearing masks now, many insurers are still using the fear of seeing others face to face as a reason for keeping appraisers from inspecting damaged vehicles.

Now, without any change in the law or rules, many insurers are telling collision shops they will no longer come out to see damaged vehicles, telling them instead to take photos of the damage and prepare estimates to be sent to insurers. More recently, some insurers are now demanding

Pre-Registration for NORTHEAST 2023 Opens December 5

The countdown has begun! With just a few weeks left of 2022, it’s time to prepare for the most anticipated weekend in the automotive and collision world as AASP/ NJ’s flagship event, NORTHEAST® Automotive Services Show, returns March 17-19, 2023 to the Meadowlands Exposition Center in Secaucus, NJ.

Attendees can now visit the event’s website, aaspnjnortheast.com, to pre-register for free admission to the show.

NORTHEAST is the largest and fastest growing show of its kind. Now in its 46th year, the show supplies automotive professionals with an unmatched experience offering the latest most advanced equipment and a premium educational slate with some of the industry’s most knowledgeable minds scheduled to appear –such as Mike Anderson (Collision Advice), Timothy Ronak (AkzoNobel) and David Luehr (Elite Body Shop Solutions) – who will speak to current industry trends and how to combat the latest challenges.

Attendees can once again expect to visit with over 150 exhibitors, interact with celebrity guests and have the chance to win prizes!

“It’s time yet again for the industry to return to the Meadowlands for the largest automotive services trade show of its kind, and we are very excited to see everyone on the show floor this coming March!” states AASP/NJ Executive Director Charles Bryant. “Last year’s show felt a lot closer to ‘normal,’ and as the hardships of the pandemic appear more and more in the rearview mirror, NORTHEAST 2023 promises to deliver the industry’s best training, equipment and networking to help shops elevate their businesses. When repairers take the time to make this type of investment in their business, our industry can achieve everything we’ve ever dreamed and more…the sky is truly the limit!”

For news and announcements regarding NORTHEAST 2023, please visit aaspnjnortheast.com To learn more about AASP/NJ, visit aaspnj.org NJA

EXECUTIVE DIRECTOR’S MESSAGE

continued from pg. 14

that the shops assume these duties while refusing to compensate the shops for performing these services that insurers once paid staff employees or independent appraisal companies to perform for as long as I can remember.

To add insult to injury, when a shop goes along with this and takes the photos and prepares the appraisal of the damage and sends it to the insurer, almost every time, the shop gets an estimate back from the insurer for a fraction of what the shop wrote and submitted based on his or her personal inspection of the damage to the vehicle. From there, the insurer’s position is, “That’s all we can pay based on the pictures you provided.” The response is always the same: “Take more images, and send them in.” Then, it’s supplement after supplement to get even close to what it takes to repair the vehicle. More and more reports are coming in that insurers are now failing to return phone calls or messages requesting inspections to resolve these issues.

Customers’ rental coverage is being used up because of the unreasonable delays directly related to the photo estimate game insurers are playing and claiming that they are doing it to expedite the process when, in reality, the opposite is true.

The State of New Jersey needs to step in and put a stop to this unreasonable practice until such time when technology is developed to be able to accurately prepare an assessment of the damage based on photos, if that can ever even be developed. AASP/NJ is working on addressing these issues and more. If there ever was a time for collision shops to join AASP/NJ, that time is now. Power is in numbers. The more numbers, the more effective our efforts will be. If you are a shop owner experiencing problems related to photo estimates – member or not –please call the AASP/NJ Hotline and report the issue. Stay tuned for more information on this subject in the coming issues of New Jersey Automotive.

Greco Publishing Presents Industry Icon Award to Mike Anderson at SEMA 2022

Thomas Greco Publishing (TGP) presented its inaugural Industry Icon Award to one of the most recognizable faces in the collision repair industry – Mike Anderson (Collision Advice) – during the Collision Industry Red Carpet Awards Breakfast held during SEMA week in Las Vegas, NV.

“Our inaugural industry icon winner is known locally, regionally, nationally and globally as the go-to in collision repair,” said TGP Senior Vice President Alicia Figurelli about the “incomparable” Mike Anderson during the presentation. “For 33 years, TGP has had the privilege of recognizing the best of the best through our work with some of the most prominent collision and mechanical repair associations throughout the nation. MerriamWebster defines an icon as ‘a person or thing who is widely admired, especially for being a great influence or significance in a particular sphere.’ An industry icon rises above the fold, through not only their extreme knowledge and skill, but also in their consistent service to fellow repair industry professionals. Mike has committed himself to working with repairers, whether one-on-one, 20 at a time or in a packed ballroom with the intent of having them leave the meeting a better professional than when they walked in.”

“I am truly humbled,” Anderson expressed in

accepting the award on what also happened to be his birthday. “I turned 60 today, and I am really grateful for the opportunities I’ve had. My dad passed away in May, and this is in memory of him. He helped me understand how important quality and customer service are.”

“When we came up with the concept of this award, there was no debate, no discussion on who the first recipient would be,” says Thomas Greco, president of TGP. “Everyone just looked around and said: ‘Mike.’

“He is truly an icon and more importantly, a friend to everyone in our industry.”

Thomas Greco Publishing is the publisher of New Jersey Automotive, Hammer & Dolly, New England Automotive Report, AASP-MN News and Texas Automotive and is the event manager of the NORTHEAST® Automotive Services Show.

Nominate an Influential Woman for the Women’s Industry Network’s 2023 Awards

Who is the most influential woman you know in the collision repair industry? Maybe you know several…and now’s the time to sing their praises by nominating them for the Women’s Industry Network’s (WIN) 2023 Most Influential Women (MIW) awards. Nominations will be open through Friday, January 6, 2023, and winners will be celebrated during WIN’s 2023 Annual Conference, scheduled for May 1-3 in San Antonio, TX.

Women working in any segment of the collision repair industry across the US and Canada can be nominated for the MIW award; neither nominators nor nominees are required to be WIN members to be eligible. Nominees will be reviewed and interviewed by an independent selection committee which is comprised of past WIN members and MIW who are currently uninvolved with WIN leadership, and selection decisions are based on established criteria, including industry influence, professional accomplishments, mentorship and community service.

Established in 1999, the MIW award recognizes women whose leadership, vision and commitment to excellence have enriched the collision repair industry. Over 100 impressive women have been recognized todate for their contributions.

Celebrate a strong woman in your organization (or within your network) by nominating her today at bit.ly/MIWnominees

NJA

Mike Anderson (Collision Advice) and Thomas Greco Publishing Senior Vice President Alicia Figurelli

AASP/NJ Representatives Attend First In-Person AASP National Board Meeting Since 2019

For the past three years, the AASP National Board has met virtually every six months, so when they gathered in person on November 2 for the first time since the pandemic began, they had plenty to discuss. Representatives from affiliates around the country, including AASP/NJ Treasurer Tom Elder (Compact Kars; Clarksburg) and Board member Ken Miller (821 Collision; North Haledon) participated in conversations related to the Database Enhancement Gateway (DEG), updates from United Fire Group (UFG) and legislation on Right to Repair.

After Outgoing President Elder welcomed attendees, Danny Gredinberg, administrator for the DEG, announced that the DEG

on current insurance industry trends, as well as performance of the AASP program. “UFG is dedicated to the AASP program,” Olson emphasized. “We feel very good that we’ve got the right tools to monitor this situation and adequately support AASP shops.”

The final guest speaker during the meeting was Tom Tucker, Government Affairs/Public Policy for the Auto Care Association, who dove into the controversial topic of Right to Repair, saying, “We need to keep the dialogue going, particularly when it comes to discussion on the use of aftermarket parts.”

concerns and the changing nature of the industry introducing electric vehicles.”

Although Tucker feels “very comfortable [the judge] is going to rule in our favor,” he also admitted that the losing side is likely to appeal the decision, so the issue will not be resolved anytime soon.

is nearing 20,000 inquiries with a 50-55 percent change rate. “The industry is hungry for education,” he claimed, stressing the need for shops to continue “challenging times by submitting inquiries to see change. This is how we get accuracy.”

Next, Leah Olson and Lorna Morgan from UFG shared updates

Referencing Massachusetts legislation from a decade ago, Tucker noted that wireless telematics were left out with the agreement to address the issue later. “Later is now,” he claimed, explaining that Auto Care’s 2019 ballot initiative passed with 75 percent of the vote, leading automakers to sue in federal court based on two issues: federal preemption and cybersecurity. “I think the judge is trying to be deliberate. These are not necessarily easy issues to understand, and he’s trying to be deliberate with cybersecurity

Claiming that Right to Repair is a “growing movement with global momentum,” Tucker shared Auto Care Association’s position on OEM repair procedures: “We feel very strongly that, from a safety perspective, you should follow the suggested repair procedure, but we recognize that OEMs can always change their procedures to include parts, and that’s crossing the line for us when they insist on using OEM parts and not providing consumers with the choice to use aftermarket parts. For that reason, we oppose OEM repair procedures. We want customers to have a safe, proper and reliable repair, so we’re not questioning

In the wake of the many technological advances impacting the industry, Tom Tucker (Auto Care Association) encouraged AASP leaders to continue to engage in open discussions to inspire “better understanding” and “craft solutions for tomorrow.”

Danny Gredinberg (Database Enhancement Gateway) encouraged shops to submit inquiries to help information providers show accurate times on operations.

Leah Olson and Lorna Morgan from United Fire Group updated Board members on the performance of the AASP program.

safety; we’re questioning giving the OEMs the authority to change the procedure in a way that would basically create a monopoly on parts.”

AASP affiliates shared thoughts on Tucker’s presentation.

“On the collision side, we feel the OEM parts are absolutely necessary because the aftermarket parts are not properly tested and don’t meet the same standard for fit and finish after a collision,” Elder stressed on behalf of auto body shops. “If a quality control test were performed, I’m sure the body industry would have open arms, but [as it stands], we have to do the job twice and it becomes a difficulty for us, especially with cradle to grave responsibility on collision repairs.”

On the auto repair side, arguments were made in favor of aftermarket parts which reduce expenses for customers, as long as the parts are tested and proven to be safe.

As the semi-annual meeting concluded, the National Board voted in favor of the nominating committee’s suggested Executive Committee for the 2023-2024 term: President Dan Sjolseth (Superior Service Center; Eagan, MN), Vice President Lucas Underwood (L&N Performance Auto Repair; Blowing Rock, NC), Secretary/Treasurer Barry Burkholder (Auto Success Inc.; Ephrata, PA) and Chair of Executive Directors Amanda Henry (AASP-PA) with Elder serving as Immediate Past President.

AASP National also recognized outgoing Executive Committee members Molly Brodeur (AASP-MA) and Bill Adams (New York State Association of Service Stations and Repair Shops) before voting to hold its next meeting in Chicago, IL in April 2023. For more information on AASP National, visit autoserviceproviders.com

Outgoing President Tom Elder presented outgoing Executive Committee members Molly Brodeur and Bill Adams with plaques thanking them for their service.

Outgoing President Tom Elder received his gavel and plaque honoring his service from Incoming President Dan Sjolseth.

AASP/NJ Board Member Ken Miller and AASP/NJ Treasurer Tom Elder

I did what they asked and told them that I liked the machine and just wanted a replacement. The next response was:

Thank you for reaching out to us. I’m sorry to hear that you experienced this, but don’t worry, I’m here to help. Please try to do the water droplet test, turn on your machine and place droplets of water on the heating plate and observe if it evaporates. Please let me know the outcome of the test.

I wrote back telling them that the test worked but the machine still wasn’t popping.

Thank you for reaching out to us. I’m sorry to hear that you experienced this, but don’t worry, I’m here to help. We appreciate your response. Since there’s an evaporation, that means that the unit is heating up. You might want to check the expiry date of your kernels or try using another one.

Now it was the popcorn’s fault? When all else fails, blame old Orville? I tried three different kinds of kernels and still no luck. I even went as far as videotaping the cooking process and sent it to them. “I still do not have my problem solved. Attached, please find a link to a video of the machine not working. Please send a REPLACEMENT immediately. Do I really have to FIGHT THIS HARD OVER A $40 item?”

By now, it was September 17. The warranty expired November 1. Ten days later, I tried again: “Now I’m being ignored? Are you trying to wait me out until the warranty on this unit is over? This is a disgrace.”

I’m still waiting to hear back. My last correspondence was: “Can you be more unprofessional??? Shit product. Shit company. Shit customer service.”

Why does this stuff happen to me???

But I wasn’t giving up. I thought I got my revenge by purchasing an ACEKOOL Popcorn Maker, Multifunctional Popcorn Popper Machine with Nonstick Plate & Stirring Rod!

Of course, this thing was worse than the first one. It popped half the kernels from day one. But on this night, I was determined to have

my popcorn. As I watched the new popcorn maker cook like it had constipation, I quickly grabbed the old one and started popping corn on that one too. I figured between the two of them, I could get one solid bowl of popcorn for my snack! Stereo popcorn!

With years of service and commitment to the BMW brand, we reflect on our past and look to the future, thankful for your loyalty and dedication by allowing us to serve you. We also want to extend our services to new and existing businesses who are looking for something more than just a parts supplier. • We are part of the BMW NA delivery program that delivers to us three additional times per day

•

BMW of Springfield

©️2022 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

THE NEW NORMAL: What the Industry Looks Like Now

New Jersey Automotive’s 2022 Survey Results

The world is starting to settle back into a sense of normalcy after a tumultuous couple of years, but what does the “new normal” look like for repair shops in the Garden State? Are the challenges they’re facing the same as they were last year…or the year before? Are they still being impacted by the consequences of a global pandemic? New Jersey Automotive has set out to help answer some of these questions and assist New Jersey repair shop owners in figuring out just what their industry looks like after a couple of years of “unprecedented circumstances.”

Are your fellow shop owners feeling the weight of steering on their bottom line? What is their current labor rate? Have they been able to hire any new technicians in the last year? All of this and more can be found in the following pages with the results of the NJA 2022 Industry Survey. We would once again like to thank the shop owners who took the time to respond to this survey, and we hope that you find these results valuable.

What describes your primary business?

Collision Repair: 64%

Collision & Mechanical Repair: 32%

Mechanical Repair: 4%

Collision shops: Are you a DRP?

Yes: 76%

No: 24%

If you selected “Yes” to being a DRP, how many programs are you on?

1-5: 56%

6-10: 31%

More than 10: 13%

In last year’s survey, zero percent of shops answered that they were on more than 10 DRP programs – this year, we saw that number jump to 13 percent. With steering’s impact on repair shops, it’s no wonder an increased number of shops would be inclined to “play the game” and enter into more direct repair programs than ever before.

How many employees do you have, including yourself?

1-5: 9%

6-10: 27%

11-20: 23%

More than 20: 41%

It appears that shops around the state are growing. Last year, shops with only 1-5 employees (including themselves) made up 41 percent of survey respondents, and only 13 percent of survey respondents said they had more than 20 employees. This year, we see the majority of survey takers now have over 20 employees at their shops!

What is the age of your oldest employee?

30-40: 5%

41-50: 9%

Over 50: 86%

What is the age of your youngest employee?

18-25: 77%

26-35: 23%

Over 35: 0%

Getting new life blood into the industry has been a struggle for New Jersey repairers for quite some time. In 2020, 18 percent of survey respondents indicated that their youngest employee was over the age of 35, and in 2021, that number jumped up to 30 percent; however, it seems that trend is starting to change, as the youngest technician at 100 percent of shops who responded to this year’s survey is between 18 and 35.

How many employees have you hired in the last year?

None: 5%

1: 27%

2-4: 36% 5 or more: 32%

After years of struggling to find new technicians to join their teams, shop owners around the Garden State are now starting to see hiring on the rise. Last year, 43 percent of survey respondents had hired no new employees. This year, 32 percent of shop owners who took our survey have hired more than five employees in the past 12 months. What did the recruitment of these employees look like? And after so many years of not being able to find anyone who wanted to work in the field, what kind of quality can be found in these new hires?

What has been your biggest challenge in attracting and retaining employees?

It should not come as any surprise to readers of New Jersey Automotive that 36

percent of responses to this question noted low pay rates due to labor rate suppression as a reason why attracting and retaining new employees has been difficult.

“Aside from the shortage of talented techs in our area, labor rates are being held down by the insurers, which makes it hard to compensate properly,” said one Frenchtown shop owner.

Even if compensation wasn’t an issue, it seems that despite recent hiring trends, shop owners are still struggling with a limited or less-than-stellar labor pool.

“Finding the techs or trainees is the hardest part,” explained one North Jersey shop owner. “We’re trying to slowly groom car washers into body/paint men. We provide proper compensation, benefits and fringe benefits like BBQs, bonuses, gas cards, new equipment/tools, etc. We’re trying everything to keep everyone happy so that they stay with us.”

“The applicant pool for our industry is so small, we’re just recirculating the chaff from other shops,” lamented a Rockaway repairer. “We have no issues retaining but finding experienced people with a proper work ethic – that’s the challenge.”

What is the annual salary of your lowest-level employee?

Less than $25,000: 0% $25,001-$35,000: 41% $35,001-$45,000: 36% $45,001-$55,000: 14% $55,001-$65,000: 9% More than $65,000: 0%

What is the annual salary of your highest-level employee?

Less than $70,000: 9% $70,001-$90,000: 18% $90,001-$110,000: 27% $110,001-$130,000: 9% $130,001-$150,000: 14% More than $150,000: 23%

Everywhere you look, from the gas pumps to the grocery store and beyond, prices are on the rise. With one of the highest costs of living in recorded history, shop owners around the state are doing their best to help employees survive. For the past two years, shops paying their highest earning employees less than

“The applicant pool for our industry is so small, we’re just recirculating the chaff from other shops.”

$70,000 was 41 percent – this year we saw an 87 percent decrease in that number with only nine percent of shop owners indicating that this was the case. Shops paying their highest earning employee more than $120,000 annually was less than 15 percent in 2021 and has tripled, increasing to 45 percent.

What do you think is the most pressing issue affecting shops today?

The automotive repair industry is one of the most challenging fields to be a part of. Between the struggle to get paid properly for the work, the rapid advancement of technology on cars and the difficulty in keeping up with training – not to mention the miniscule number of new workers in the field and more – New Jersey shop owners are always grappling with something. But which of their challenges do they find to be the biggest thorn in their side? According to an overwhelming majority of shop owners who responded to this year’s survey, insurers are the biggest obstacle in their way on a daily basis.

“Insurance company lies, suppression and discrimination are crippling us,” bemoaned one Central Jersey shop owner. “Their denials and delays are simply cutting us off at the knees. How are we supposed to do our work this way?”

“For us, it’s the lack of education and transparency regarding the rules and regulations of insurance companies and auto repairers,” another survey respondent from North Jersey explained. “The rights and responsibilities of each party related to our interactions are murky, and that makes things hard for us,” one shop owner from North Jersey explained. “We increased our starting offer and now pay 100 percent health insurance.”

Are you currently certified/ recognized by an OEM to perform collision repairs?

Yes: 61%

No, but I’m working towards it: 11% No, and I do not plan to become certified/recognized: 28%

Last year, only 27 percent of survey

takers were certified/recognized. Between 2020-2021, we saw a 46 percent increase in those not planning on being certified at all and a 27 percent decrease in those currently working towards certification. We are now seeing double the shops as last year who have become certified/ recognized. As there was a 66 percent decrease in those working toward certification/recognition, it appears those who were working toward these accomplishments last year have finished their programs.

If you answered that you are certified/recognized by one or more OEMs, please list them.

This year’s survey saw a record number of manufacturers mentioned with over 35 of them finding their way onto the list. Similar to the past two years, top performers were Honda/Acura, Nissan/Infiniti, Hyundai/Kia, Subaru and GM. In a newer trend, 37 percent of the manufacturers mentioned were luxury car brands.

“There are a good number of customers who prefer to use a certified shop, so we try to be on as many programs as possible.”

“OEM certifications are going to be necessary for shops to survive in the future,” predicted one Northern NJ repairer. “That’s why we’re currently working on a few major OEM certification programs.”

However, not all New Jersey shop owners feel the same promise about OEM certification programs in the future.

“It currently only adds incremental volume to our workload,” explained one survey respondent from Southern Jersey. “And other shops becoming certified are watering down the value of a certification. Just look at Tesla.”

How would you rate your current state of business?

Last year’s survey revealed that respondents found their current state of business to be a 6.1 on average. This year, that number has increased slightly to 6.7; however, 61 percent of survey takers rated their current state of business at a seven or higher – a 22 percent increase from last year.

How has steering affected your business?

How do you feel OEM certification programs will impact your business?

My business will be affected in a positive way: 67%

My business will be affected in a negative way: 5%

My business will not be affected: 28%

Although we saw a 32 percent decrease from last year in those not expecting to be affected at all by OEM certification programs, shops across the state still feel overwhelmingly that they will be impacted by certifications in a positive way.

“We get a lot of referrals from the dealerships that know we’re certified,” one North Jersey shop owner celebrated.

It’s one of the first things you learn when you open your own shop – if you’re going to stay in business, you’re going to have to find a way to deal with steering. Whether your shop has been open for one year or 50, it’s likely that your bottom line has been affected more than once by this insurer interference.

“Insurers put doubts into a customer’s head before they even make it to your door,” one North Jersey repairer lamented. “And what happens if they do make it to you? You see it all the time – someone gets referred to you by a friend or family member, and then their insurance company pushes them elsewhere. State Farm is now even refusing to send out adjusters to us! They tell their customers that they’re in an ‘estimate assist area’ only and that they don’t have any adjusters available. Then, they tell the customer that we won’t work with the insurer and that the customer will have to move the car to

“Insurers are stepping over the line and poisoning the customers’ minds by lying to them.”

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get it fixed.”

“We hear it every day,” one Central Jersey shop owner concurred. “They say, ‘We can’t guarantee their work,’ and ‘You may be responsible for out of pocket expenses if you go there.’”

Another repairer from Middlesex County agreed.

“For every one customer we know about being steered away, there are 15 others we never know about,” he explained. “Insurers are stepping over the line and poisoning the customers’ minds by lying to them. They never give them their full options; they only give them select choices that they want them to pick from.”

Still, despite all of the challenges that steering provides, some New Jersey shop owners are finding a silver lining.

“With parts and business delays, I have seen more claims from insurance companies than ever before,” noted a North Jersey survey respondent. “That’s even for the insurers for whom we’re not part of a DRP. Their providers just can’t keep up.”

phone calls to negotiate a photo claim, more pictures, delayed repairs, exhausted rentals, pissed off customers, uneducated insurance agents writing estimates claiming he can’t see the damage… and so on. It should be used accordingly to help expedite repairs, not as the standard.”

Another shop owner from Rockaway agreed with his North Jersey neighbor.

“It can help in situations that warrant it,” he noted. “However, it definitely does hurt when it’s used in situations that don’t. I do feel like it speeds the process along when it works as it should.”

Has the increase in photo

estimating caused delays in your shop’s repair process?

Yes: 72%

No: 28%

In 2020, 67 percent of survey respondents thought photo estimating was

insurance companies and arguing with people who don’t understand the repair process.”

“Someone who was a bank teller three months ago is now an estimator,” joked one Central Jersey repairer. “They have little to no experience and are writing estimates…it’s a joke.”

Even though photo estimating causes its own delays, even trying to avoid it completely doesn’t seem to solve the problem.

“We do not allow photo estimates for supplements,” explained one North Jersey survey respondent. “Yet, since COVID, fewer adjusters are on the road, and that does lead to longer repair times.”

“The time to process claims in general has lengthened,” another Morris County shop owner pointed out. “As too has photo estimating. But how long it takes an insurance company to process their claim is none of my concern.”

Do you typically perform scans before and/or after a repair job?

Yes: 24%

No: 76%

They say a picture is worth a thousand words. For shop owners today, we know that somehow that still simply isn’t enough. Even though photo estimating hasn’t been around for very long, it has had a huge impact on the automotive repair industry – one which, according to 76 percent of survey respondents, has been overwhelmingly negative.

“As the repair facility, it starts the process of the claim faster but adds additional administrative work and slows down the actual repair process,” expressed one Essex County-based shop owner. “As the customer, it gives them a false sense of security when their vehicle may not be safe to drive due to hidden structural damage.”

“Lack of education of the processes leaves shops thinking they have to send pictures,” a fellow repairer explained. “This leads to 10 times the uncompensated admin work on the shop’s end. Multiple emails, picture saves, file creations,

“Someone who was a bank teller three months ago is now an estimator. They have little to no experience and are writing estimates...it’s a joke.”

helping expedite the repair process, likely as the pandemic was already causing other delays, and it provided a stop gap for one part of the process to keep moving forward. That very quickly took a turn in 2021 with 73 percent of respondents saying it was harming the repair process – a trend which we continue to see in this year’s iteration of the survey.

“Photo estimating delays the whole repair process because, in most cases, the parts selected for the repairs they write for actually need additional pieces, so the cars come into the shop and you immediately have to get a supplement prior to getting started,” reveals one exasperated shop owner. “Then you have to go through six supplements just trying to get the uneducated individual the insurance company hired to look at the photos and understand how the estimating program works and how to repair a car. Cycle time has increased due to the amount of admin time shops have to spend educating the

Yes: 94%

No: 6%

If you answered “yes,” do you typically perform scans:

On every job: 78%

On most jobs: 17%

On some jobs: 5%

When a repair requires calibrations, what is the average number of calibrations you perform per vehicle?

Cars are more technologically advanced these days than ever before. With vehicles looking more like computers, how many calibrations on average do Garden State shop owners perform per repair?

“The repairs always dictate you need to perform a calibration,” explained a Central Jersey repairer. “Any time you replace a headlamp or some sort of crash avoidance equipment, you can bet there will be some kind of programming needed.”

“It depends on the job,” one North Jersey shop owner stated. “Could be none required to several.”

Do you feel the increase in photo estimating has helped the repair process?

One thing is for certain, the future of automotive repair will see shop owners dealing with more and more internal programming as the years go on.

If you answered “yes,” do you typically:

Scan in-house using a third-party scanner: 50%

Hire a third-party vendor to perform scans: 22%

Scan in-house using an OEM scanner: 28%

Do you experience difficulty in getting properly compensated for scans?

Yes: 50% No: 50%

Do you feel that your shop is prepared to repair EVs? Why or why not?

Yes, we are prepared: 56% No, we are not prepared: 44%

With gas prices the way that they are, it’s no wonder that we’re seeing more and more electric vehicles on the road than ever before. If an electric vehicle rolls into one of your bays, will you be prepared to repair it? Nearly half of all survey respondents who participated this year do not feel ready to take on this new challenge.

“We have to invest a lot of money and time into equipment and training before we can let one into our shop,” a Howellbased shop owner admitted.

As one survey taker from Northwest New Jersey expounded, training and equipment aren’t the only barriers to getting involved in these repairs.

“The training and requirements are not a problem,” he pointed out. “The bigger issue will be in the space requirements. As electric vehicles increase in number, larger areas dedicated for safe storage of damaged EV vehicles, EV equipment and batteries will be our challenge.”

Yet, some shop owners in the state just don’t feel like this challenge is yet worth their time, money and energy.

“There’s just not enough volume to justify the cost of training, tools and

certification,” a Nutley shop owner confessed. He was not alone in his sentiment.

“I have no interest in repairing Teslas and Rivians,” one of his North Jersey neighbors agreed. “We will gladly send them to someone else who is qualified for the repairs.”

In your experience, which insurer do you find most difficult to deal with and why?

While nearly every insurance company you can name ended up on this year’s list of difficult insurers, for a record sixth year in a row, the most problematic insurance companies to Garden State shop owners were State Farm (or as one survey respondent referred to them – “Snake Farm”), Allstate and Progressive.

“At the moment, State Farm is probably at the top,” one North Jersey repairer revealed. “Although they’re followed very closely by a pack of others!

“As electric vehicles increase in number, larger areas dedicated for safe storage of damaged EV vehicles, EV equipment and batteries will be our challenge.”

The removal of the Appraisal Clause from their contracts leaves the insured with no good avenue for claim dispute, and their egregious behavior leaves customers with significant out-of-pocket expenses.”

“State Farm is the worst,” agreed one of his neighboring shop owners. “They refuse to send anyone out and claim that there are no adjusters in this area. Customers can expect a minimum of four weeks on their repair with any State Farm claim. They take over a week to respond to a supplement. If they call you to discuss it, they usually never know what they’re talking about and aren’t familiar with how the estimating software is supposed to be used to properly account for the repairs. Whenever you provide them with documentation, they still send the supplement through without making the corrections, and then you have to go through it all over again with someone else. I’ve had their customers on a threeway phone call with them, trying to settle

claims, and the representative would be mocking the client and screaming at them, telling them to be quiet and being rude to them…only to hang up and never be heard from again. No State Farm claim is to leave our shop without payment in full.”

“State Farm, Allstate and Progressive do not negotiate in good faith,” said a Central Jersey repairer. “They want to divide us and the customer in order to save some money. Adjusters are all motivated by low severity.”

What is your current labor rate?

$50-$60: 44%

$61-$70: 28%

$71-$80: 11%

$81-$90: 6%

More than $90: 11%

What do you think your labor rate should be?

Less than $90: 13%

$91-$100: 33% $101-$110: 7% $111-$120: 7% More than $120: 40%

How do you educate your current and potential customers?

Even though there is more information than ever at our fingertips, it seems that the consumer has never been less informed. The responsibility to reliably educate customers, therefore, unfortunately falls on the shoulders of automotive repairers. So, what do New Jersey shop owners find is the best way to go about it?

“Any time we write an estimate or field a phone call, we are open and transparent with them,” reported one North Jersey repairer. “We have no companies that we’re contractually obligated to bend over for or watch what we say about, so we can be honest with the customer. We tell every State Farm customer what they’re in for prior to them leaving the vehicle with us, and we let them know we’re going to fight for them. Unfortunately for the customer, State Farm proves us right every time. But it shows them that we weren’t kidding, and from that point onward, they won’t go anywhere else.”

2022 NJA Industry Survey

“It takes hours of coaching,” a shop owner from South Jersey agreed. “We have a detailed discussion on the claim/ repair process during the initial inspection to give them a clear perspective from start to finish. We explain the entire process up front on what could or could not happen and everyone’s individual responsibility. It’s worth it though. Quality and service make them come back.”

Approximately how much do you spend on parts annually?

$1-$100,000 per year: 6%

$101,000-$500,000 per year: 33%

$500,001-$1 million per year: 22%

Over $1 million per year: 39%

Where do you look first when purchasing parts and services for your shop?

New Jersey Automotive: 42%

Word of mouth: 11%

Online: 5%

ABD: 11%

Existing relationships: 26%

Other: 5%

Shop owners: Do you feel that MSOs (Caliber, ABRA, Crash Champions, etc.) are:

A threat: 33%

Irrelevant: 28%

An opportunity: 39%

In 2021, only 14 percent of survey respondents saw MSOs as an opportunity, a number which has increased in 2022 to 39 percent. We also saw a 19 percent decrease in those who see MSOs as a threat! Why the change of heart?

Even though many of the individuals who took the survey noted that MSOs are more loyal to the insurance companies than their customers, some New Jersey shop owners are hopeful that their combined voice may be able to be leveraged for higher labor rates.

If you could change anything about this industry, what would it be?

Imagine you found a genie who could grant you three wishes to change your industry – what would you ask for? For New Jersey shop owners who took our survey, the answers truly came in all across the map.

“I would eliminate direct repair,” a survey respondent from Millstone stated. “I would also have them pass legislation to allow legal action against insurers.”

He was not alone in his desire for insurance companies to behave differently than they do. In fact, 23 percent of survey takers mentioned insurers and DRPs in the changes they wish they could see in the industry.

“I just want the insurance companies to reimburse the

customers,” a Washington shop owner agreed. “They act like they’re doing the repair themselves. It’s ridiculous.”

However, our survey respondents didn’t limit their ideal changes to just the impact of insurance companies on the industry.

“There should be more camaraderie among the shops,” expressed one Livingston shop owner. “It’s an all-you-can-eat buffet out there, but everyone wants to act like they have the better mouse trap, and they can’t talk about it. We need a lawyer to explain what we can and cannot talk about, because I think it’s ‘BS’ we’re not allowed to use insurance company names or specifics in our meetings.”

“I wish there was more education for shops,” noted one Edison repairer. “It’s a business. A lot of us need to learn how to run it like one.”

One thing is for certain: Unless we find that genie, we as an industry will need to work together for anything to change.

Summary:

One thing the results of the 2022 New Jersey Automotive survey have shown us is – like the old saying goes – the more things change, the more they stay the same. As we level out from the pandemic and see some of its effects in our rearview mirror, many new challenges lay on the road ahead. We hope that these results helped you feel less alone in your struggles and allowed you to find new insights on how to handle the challenges currently at your door. NJA

continued from pg. 24

As I stepped back to take a breath, I noticed my dogs were laying there looking up at me with a look on their faces like, “What the f#$k is wrong with you, psycho popcorn man?” Laughing at the ridiculousness of it all, I took out my phone and videoed the psycho popcorn man method for posterity.

Two days later, I found myself in Target and couldn’t resist. I bought the Dash SmartStore Stirring Popcorn Maker. Third time’s the charm? Not quite. This one works and cooks all the kernels. Problem is, it takes about a half hour to cook maybe half of what the first two cooked. It’s not really worth the trouble.

But I’m not a quitter! When I wrote up my Christmas list for my wife and kids, I bet you can guess what was right there at the top. That’s right. I can’t wait to get my hands on my Stovetop Popcorn Popper!

Merry Christmas everyone! Wishing everyone a healthy happy new year, and THANK YOU all for supporting us!

Why Join WIN?

WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market.

• Local/Regional Networking Events

• Annual Education Conference

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womensindustrynetwork.com

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Greco Publishing has successfully served the automotive repair industry for over 30 years in print, online and as an association liaison, providing a variety of different services to cover the needs of our clients and facilitate their day-to-day business.

NJA

THOMAS GRECO

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ARANJ

Board of Directors

David Yeager - EL & M Auto (800) 624-2266 / elandmauto@aol.com

Ed Silipena American II Autos (609) 965-0987 / esilipena@yahoo.com

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

Dillon Rinkens - East Brunswick Auto (732) 254-6501 / ebautonj@comcast.net

ARANJ Officers

President - Rodney Krawczyk

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

1st Vice President Daryl Carman

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2nd Vice President - Mike Ronayne

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Wharton Insurance Briefs

The New Jersey Workers’ Compensation Rating and Inspection Bureau released the newly promulgated rates for 2023:

• Auto Dismantling rate increased from $13.22 to $15.12.

• Auto Body Repair decreased from $4.18 to $3.51.

• Auto Repair decreased from $5.49 to $5.43.

• Clerical decreased from $0.17 to $0.16.

• Iron or Steel Scrap Dealer decreased from $10.57 to $9.07.

• Salesperson decreased from $0.42 to $0.40.

• Store: Retail Accessories (Counterperson) decreased from $4.61 to $4.29.

• PLEASE NOTE: The Store (Counterperson) code must be approved prior to use. The operation must be physically separated from salvage and parts storage and must not have any interchange of labor. This code does not include drivers.

Also, the executive officers’ annual minimum payroll is $41,080 and annual maximum payroll is $163,800. Lastly, if your insurance policy is written in the New Jersey State Plan, you are going to be charged an additional 20 percent (minimum) for the Plan Premium Adjustment Program and will lose the Premium Discount.

As always, if you have any questions regarding your insurance coverage, please contact us.

Mario

Insurance

DeFilippis AAI Vice President Wharton

Group

(732) 686-7020 (908) 513-8588 (cell) mdefilippis@whartoninsurance.com