The official publication of the Auto Body Association of Texas (ABAT)
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Contents
FEBRUARY 2024
on the
cover
Official publication of the Auto Body Association of Texas
ABAT BOARD OF DIRECTORS
ABAT CELEBRATES A DECADE by Chasidy Rae Sisk
16 DEPARTMENTS 4
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Treasurer David Osburn “Ozzy” David McDavid Ford ozzy6384@gmail.com (817) 648-5759
Executive Director Jill Tuggle jill@abat.us (817) 899-0554
ABAT BOARD MEMBERS
PRESIDENT’S MESSAGE by Burl Richards Cheers to ABAT’s 10 Years!
6 7 8 11 12
EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle With Love, from ABAT
14
NATIONAL FEATURE by Alana Quartuccio Improving Efficiency as Paintless Dent Repair Goes Mainstream
20
ASK THE EXPERT by Robert L. McDorman A Well-Funded Mandatory Right to Appraisal Journey in Texas Continues
ABAT MEMBER APPLICATION ABAT FEATURE by Chasidy Rae Sisk Fresh Perspectives: Death of the Estimator Role TEXAS AUTO BODY TRADE SHOW SAVE THE DATE LOCAL FEATURE by Chasidy Rae Sisk Battling for Right to Appraisal: Do You Understand the Impact?
Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Logan Payne Payne & Sons Paint & Body logan@paynescollision.com (214) 321-4362
Brandon Gillespy Park Place BodyWerks bgillespy@parkplace.com 214-443-8250
Anthony Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 PRESIDENT/PUBLISHER Thomas Greco / thomas@grecopublishing.com VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio / alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk / chasidy@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
ADVERTISERS’ INDEX
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
1SourceADAS....................................................5
Ecotech...............................................................23
All Clear Diagnostics & Calibration..............10
FindPigtails.com................................................5
Alloy Wheel Repair Specialists.....................15
Paint Works Dallas...........................................IFC
Auto Claim Specialists....................................21
Petty Details.......................................................9
Beacon Equipment Resources.....................23
Transparent Claim / Who-Owes-What........13
CAR-O-LINER Southwest...............................18
USI........................................................................19
Classic Chevrolet.............................................24
Womens Industry Network............................22 3 February 2024 Texas Automotive
SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle Robert L. McDorman / Mike Anderson / Jacquelyn Bauman @grecopublishing
www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2023 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. Stock Images courtesy of www. istockphoto.com.
President’s Message
Cheers to ABAT’s 10 Years!
T
Time sure flies when you’re having a good time and doing something that matters. When Texas Automotive Managing Editor Chasidy Rae Sisk mentioned ABAT was coming up on our 10 year anniversary, my first thought was “damn, those 10 years went by fast!” As I’ve reflected over this past decade and thought back to when we first got started, I can’t help but recognize that God works in mysterious ways. Our initial intention was to create a somewhat localized association here in East Texas, but little things happened and added up to thwart that plan…for the best. For instance, a company already existed with a similar name to the one we wanted to use, so we just went with Auto Body Association of Texas. Next thing you know, we’re holding our second meeting in Tyler, and several shops from Dallas show up after hearing about our first meeting. Well, if they wanted to join, we weren’t going to stop them – we welcomed them right into the fold! At the time, I was driving around a lot, traveling to different cities around the Lone Star State, and in those first six months, we had a lot of successes. It seemed like each meeting would result in a group showing up with the desire to be part of what we were doing. Even though one market may be experiencing things that another market isn’t seeing yet, it seems like those market conditions have a tendency of creeping into other markets eventually, so having a good system to communicate and share information has really benefited all of us by giving shops a heads up about what may be coming. And as we added chapters in Austin, Dallas, East Texas, South Texas, West Texas and so forth, we immediately recognized that we needed a Board member to represent each of those regions. We wanted to make sure that those parts of the state had some say about what happens with our association, and I think we did a really good job with that. Our Board consists of a great mix of guys from all over with lots of different viewpoints and ideas, and that’s a huge part of what makes us so successful. ABAT Vice President Eric McKenzie, Chairman of the Board Corey Pigg, Treasurer David Osburn and Board members Bobby Beason, Larry Cernosek, Kevin Ellison, Brandon Gillespy, Chad Kiffe, Greg Luther, Darrell
Smith, Robert McDorman, Chad Neal, Logan Payne, Anthony Palomo, Manuel Rubio and Albert Salinas are all incredibly successful members of the industry. Add Burl Richards in ABAT Executive Director Jill Tuggle, ABAT President and you’ve got a quality group where everybody is bringing something pretty amazing to the table. And I’m not just the president of this association. I’m also a shop owner, and when I ask myself what ABAT has done for my business, I can tell you unequivocally and without hesitation that ABAT has worked wonders for my shops. It has helped get the message out to customers about what we’re doing, but the biggest thing that this group has done for my business is help me truly realize the importance of repairing vehicles properly and safely. It all starts with that; any profitability or other success is backdoor to the safety component. But it all goes hand in hand because if you’re fixing cars properly, you’re aware of the training and equipment needed, and that isn’t sustainable if you aren’t being reimbursed properly…it’s all tied together! So, what’s next? As an association, ABAT has a lot of confidence going forward. The next legislative session is a year away, but we’re already preparing for that. In the meantime, we’re gearing up for the 2024 Texas Auto Body Trade Show, scheduled July 11-13 at the Irving Convention Center. As an organization, we’ve learned a lot, we’re still learning more, and we plan to stay on that track as we continue to gain traction. Anyone who comes to an ABAT meeting is certain to leave in a better position with something new to add to their business; otherwise, what’s the point of even having an association?! We’re going to keep doing what we’ve been doing – giving Texas shops a forum for education, communication and sharing information so we can all be successful. It’s been a great first decade, burl@burlscollision.com but we’re just getting started. Cheers to the next 10 years! TXA
4 February 2024 Texas Automotive
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5 February 2024 Texas Automotive
MEMBER
Executive Director’s Message
With Love, from ABAT
I
I thought it would be cute to look up the origins of Valentine’s Day to bring you the second installment of my highly-riveting messages of 2024. One of the first hits from my search was from the NPR website which looked both promising and legitimate. So I clicked on it and read…“From Feb. 13 to 15, the Romans celebrated the feast of Lupercalia. The men sacrificed a goat and a dog, then whipped women with the hides of the animals they had just slain.” Whoa. Ok then. So the origins are far from romantic. I started wondering, “What collision industry sectors might have questionable origins?” Well, I went down a couple rabbit holes, and here’s what I found… Googling “the dark side of the insurance industry” yielded MANY results – a major rabbit hole of its own mostly consisting of articles from outside our industry which serves as a huge flashing light that we are not alone in our misery working alongside these “partners” as some may call them. One article from the journal Review of Law and Economics states: “We focus on the incentives of insurers to engage in anti-competitive practices and trigger harmful behaviors of their insureds or third parties, in order to increase demand for insurance coverage. Policymakers should be aware and critical of insurers’ perverse incentives that counteract the interests of the insureds and society.” Oof. Like I said, we are not alone in our experience. But not the kind of material I was after for this message. One of the darker nuggets I found rolled my stomach into a knot. In the spring of 1845, sales were slow for the insurer New York Life, so they looked to a particular agent in the south who had a new idea. According to an article in The New York Times, “There, in Richmond, VA, an enterprising New York Life agent sold more than 30 policies in a single day in February 1846. Soon, advertisements began appearing in newspapers from Wilmington, NC to Louisville as the New York-based company encouraged southerners to buy insurance to protect their most precious commodity: their slaves. Alive, slaves were among a white man’s most prized assets. Dead, they were considered virtually worthless. Life insurance changed that calculus, allowing slave owners to recoup three-quarters of a slave’s value in the event of an untimely death.”
Ew. I know I asked for dark, but I’m not sure you get much darker than that. I’m not sure what’s worse: a man insuring enslaved people as assets or the insurance company exploiting it for a boost in sales. Thank God those times are behind us! Jill Tuggle On a lighter note, I was surprised ABAT Executive Director to learn that automobile manufacturers invented jaywalking as a clever response to the new and quite dangerous mode of transportation hitting the streets: cars. Prior to the 1920s, city streets were a place where people gathered. Until cars came along, the streets were a pedestrian’s domain, so it’s no surprise that as automobiles became more commonplace, pedestrian fatalities skyrocketed. Cities were outraged and went on a campaign to do away with these “killing machines.” Local auto dealers panicked and decided to take action to claim the streets as a place for vehicles. The laws and messaging was carried forth by an automobile industry group (think association) whose keen thinking helped them take control of how the messaging was presented to the public, shifting the blame from the cars to citizens who were jaywalking. According to the article, “During this era, the word ‘jay’ meant something like ‘rube’ or ‘hick’ — a person from the sticks, who didn’t know how to behave in a city. So pro-auto groups promoted use of the word ‘jay walker’ as someone who didn’t know how to walk in a city, threatening public safety.” I was encouraged to see that an “industry group” took matters into their own hands, gained control of some skewed messaging and created change. I know a group who is trying to accomplish just that… If you made it this far along, thanks for sticking around with me. This message began as research hopeful for a tale rooted deep in love, then dove down to one of the darkest parts of our history and came back around to inspire change. I hope you had a chuckle in there somewhere and that you will stick around to see what else we have up our sleeves for 2024 because I promise there is never a dull moment. With love, jill@abat.com ABAT TXA
6 February 2024 Texas Automotive
Join ABAT today in our mission to promote consumer safety, proper repairs and the success of the collision repair industry!
WE CAN’T WAIT FOR YOU TO SHARE YOUR IDEAS! 7 February 2024 Texas Automotive
ABAT Feature
Fresh Perspectives: Death of the Estimator Role In an environment that changes as quickly as the auto body industry, those who are willing to look at their businesses from different angles may have an advantage over someone insisting on doing things the same way over and over again…even when it no longer works. ABAT encourages its members to embrace change as repairers look to the future, which is why the association kicked off its “Fresh Perspectives ‘24” webinar series with “Death of the Estimator Role,” presented by Andrew Batenhorst (Pacific BMW Collision Center; Glendale, CA).
Andrew Batenhorst (Pacific BMW Collision Center) Comparing himself to the Grim Reaper, Batenhorst noted that the industry is in its current situation because shops have gotten comfortable with the pressures they face every day. Before offering solutions, he took a look at the history of how things have been, warning that “reality is coming up like a freight train behind us. We’re struggling to fill shops with the right people, struggling to get paid fairly…and there in the middle, you’ll find the estimator trying to make things work for the shop.”
Batenhorst explored the evolution of estimating – from the hand-written estimates using OEM Helms books and the MOTORS Guide of 30 years ago to today’s methods which rely on information providers (CCC, Audatex and Mitchell) and other systems like OEM1Stop, ALLDATA and Repairify. He predicted a future that could include advances like pre-ordering parts, predictive analysis and integrated repair instructions. “The past doesn’t compare to the present which doesn’t compare to the future because of the multitude of changes.” While the Collision Industry Conference (CIC) has defined an estimator as “an appraiser or insurance company representative who inspects a damaged vehicle and determines the cost required to restore the vehicle to the condition prior to the loss,” Batenhorst does not believe that definition fits the estimating role any longer. He challenged attendees to take a deeper look at what estimators do, pointing out that estimators in most shops “interface with everyone. There is typically no part of the process that doesn’t involve an estimator or repair planner. “But as you take note of all the different tasks they’re performing, notice that the majority are not actually important to repair planning. And that contributes to a lot of the issues our industry suffers from because it results in burnout, high turnover and even technician pay because if a shop isn’t getting paid fairly, technicians are going to suffer from low wages as well.” Fortunately, the shop itself contains answers to these problems. “There are lots of opportunities to change the dynamic of what we’re seeing in the shop,” Batenhorst insisted. “We just need to do some things differently.” 8 February 2024 Texas Automotive
It all begins with the organization’s leaders and the bar they set for everyone else. Quoting Shingeo Shingo who said, “The first step in improvement is dissatisfaction with the status quo,” Batenhorst encouraged shop owners and managers to put the work in. He suggested the first step is splitting the role of estimator into at least two roles: a front office customer service representative who would check in the vehicle, update customers and perform all other non-value-added tasks,
“
Reality is coming up like a freight train behind us. We’re struggling to fill shops with the right people, struggling to get paid fairly… and there in the middle, you’ll find the estimator trying to make things work for the shop.
by Chasidy Rae Sisk
while the repair planner researches the repair information and translates that onto the repair plan. Ideally, a third role could be created for a repair planner’s assistant as a feeder position that allows a stepping stone for training and development Batenhorst also identified eight types of shop waste in terms of productivity: defects, overproduction, waiting, non-utilized skills, transportation, inventory, motion and extra processing. To eliminate those sources of waste, he proposed a value stream mapping of the repair planning process. The three components needed to map the value stream include an information flow (communication of process-related information), product flow (which maps the steps of the development lifecycle from concept to delivery) and a time ladder (which specifies the average amount of time to complete each step). Taiichi Ohno taught, “Without standards, there can be no improvement,” and Batenhorst used Rolex as an example of a product that sets a standard with its reputation for quality, elegance, luxury and precision. “Why can’t that concept exist in a body shop?” he asked. “We are dealing with highly variable work, but we want to remove that variability by having every vehicle go through the shop in a standard way. This is vital to making sure everyone has what they need and that everything is done in a consistent manner. “Realize that it will take time to craft these foundational elements,” Batenhorst cautioned. “It won’t work perfectly as soon as you deploy standards; it will require attention, guidance and empathy to accomplish this together. And your team needs to know it’s okay to make mistakes as you get this off the ground.” Acknowledging that not everyone fits into the repair planner role, Batenhorst identified a list of skills he believes leads to the highest performance: natural curiosity, emotional control, not afraid of confrontation, enjoys doing the research, empathetic, has negotiation skills, excellent collaboration skills and not overwhelmed by detailed work. He likened a repair planner to “the surgeon of the shop” and recommended putting repair planners through all possible training. “We want them to be familiar with every aspect of the process. They won’t need to perform the work, but learning the data allows them to put their repair planning mindset on top of it. Giving them access to all that knowledge will only improve the quality of the repair plans they generate.” When it comes to measuring success, Batenhorst recommends choosing a few key objectives that mean the most to the
organization. He also indicated that empowering repair planners by giving them a certain amount of autonomy is beneficial in the long run and contributes to the positive cultural impact these changes can make in an organization. Since implementing this methodology, Batenhorst has seen a huge impact among his employees. The repair planner now has time to properly research the repairs, which also enables him to address estimating inaccuracies in the information providers’ platforms and also to contribute regularly to the Database Enhancement Gateway. Quality has increased, and there are fewer delays. Because there is more time to negotiate, technicians earn more money. And overall, there’s no more 12-14 hour days, allowing for stress-free time off and a better work/life balance. “The positive cultural impact counteracts the turnover issues many shops face,” according to Batenhorst. Of course, implementation is never easy. It requires collaboration and buy-in from the entire team. “These theories are useless if you don’t hold the line, but you have to be flexible and realize your people are going to have their own opinions and ideas, so figure out how to engage them and get them involved with the process development. It’s a collaborative approach. “Our industry has been comfortable with how we’ve done things for a long time, but there’s a new chapter unfolding in front of us,” he summed up his message. “The labor market, vehicles and customer expectations are different, and with all those outside pressures, we need to leap forward.” Stay tuned to abat.us for updates on future installments in the “Fresh Perspectives in ‘24” webinar series! TXA
9 February 2024 Texas Automotive
10 February 2024 Texas Automotive
2024 THE LARGEST SHOW OF ITS KIND IN THE SOUTHWEST!
SAVE THE DATE! New Dates! July 12-13, 2024 The Irving Convention Center Irving, Texas
For more information visit www.abat.us/tradeshow 11 February 2024 Texas Automotive
Local Feature
by Chasidy Rae Sisk
Battling for Right to Appraisal: Do You Understand the Impact? Last month, Texas Automotive’s cover story (available at grecopublishing.com/txa0124coverstory) focused on one consumer’s generous donation to the fight for mandatory appraisal rights in Texas. We know you’re absolutely itching to know how the elected steward of those funds, Robert McDorman (Auto Claim Specialists), plans to use them in his fight for Right to Appraisal…and those details will be revealed next month. But in order to appreciate exactly why it’s so important to pursue this battle, it’s imperative for collision repairers to understand the impact of Right to Appraisal (RTA). Sure, you can flip through the pages of nearly any past issue of this magazine to get the gist of it, but consumer advocacy group Texas Watch compiled some relevant information last year that is worth exploring. “The numbers are eye-opening,” insists ABAT President Burl Richards. “The association gathered the information, and Texas Watch did a great job of putting this analysis together which really shows the impact that Right to Appraisal has had in Texas.” Before recognizing the value of RTA, one must first comprehend the problem that it was designed to solve. “Too often, insurance companies offer consumers too little to repair or replace their vehicle. Fair auto insurance appraisal allows consumers and insurers to determine the cost to repair vehicles or the value of the total loss,” the report indicates, explaining that RTA allows consumers and insurers to establish that fair value. Unfortunately, in 2015, the Texas Department of Insurance (TDI) permitted State Farm to eliminate the Appraisal Clause from its Texas policies, and in 2022, GEICO sought a similar removal, which was only rejected due to a lack of sufficient information being provided by the insurer. “Fair auto insurance appraisal allows cars to be repaired safely or vehicles to be valued accurately in the event of a total loss,” the Texas Watch report stresses, going on to analyze 1,246 auto insurance claims settled through independent appraisers and break down the figures in a number of insightful ways. Invoking RTA for repair claims resulted in an average increase of $5,307.35 for Texas consumers, while appraisal increased the average total loss claim by $3,889.27. Imagine the difference that $4,000 to $5,000 would make for the average vehicle owner facing such a crisis! More amazingly, when all of those claims were combined, the total amount by which the settlements were increased was $5,081,431.83…
an amount that now resides in consumers’ pockets instead of insurers’ bank accounts. But what about all the claims that were taken at face value without the vehicle owner ever pursuing RTA? It seems likely that the amount that consumers are being cheated out of could be exponentially higher since the analyzed claims only encompass a small percentage of the claims processed in Texas each year. The report goes on to examine various insurers’ average underindemnification on Texas claims as well as how those amounts vary from region to region. It also demonstrated that the average amount that insurers undervalue repair claims varies from year to year but has seen an increase in the past four years. Based on the data it analyzed, Texas Watch came to the same conclusion that ABAT has emphasized for several years: “Fair auto appraisal gives consumers an essential tool if their insurance company undervalues the cost of repairing the vehicle or the value of the total loss…From our data alone, appraisal helped over 1,000 Texans recover over $5 million in property damages, collectively. Scaled across millions of Texas drivers, one may safely assume the problem of underindemnification is orders of magnitude larger.” The consumer rights group continues on to make the plea for mandatory Right to Appraisal as the most viable solution for consumers needing to resolve value disputes with their carriers. In addition to recommending “widespread education on the policyholders’ right to invoke the Appraisal Clause,” Texas Watch’s report professed, “We must make the right to a fair auto insurance appraisal mandatory in Texas policies and educate policyholders about their right to invoke appraisal. Without the right to a fair auto appraisal, consumers have few options when determining the right dollar amount for the repair cost or the value of their total loss. Fair appraisal leads to safe repairs, and safe repairs save lives!” Texas Watch’s “Impact of Auto Appraisal” is available in its entirety at bit.ly/TXW-RTA; however, this is not the only entity that has recognized the significant impact that Right to Appraisal has on Texas consumers, as evidenced by the Office of Public Insurance Counsel Report to the 88th Texas Legislature, which can be viewed at bit.ly/ OPIC2023, and even TDI’s 2022 Biennial Report (available at bit.ly/ TDI2022biennial). Flip to page 20 for McDorman’s examination of how these reports factor into the journey for mandatory appraisal rights for all Texas consumers. TXA
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12 February 2024 Texas Automotive
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13 February 2024 Texas Automotive
National Feature
by Alana Quartuccio
Improving Efficiency as Glue Pull Repair Goes Mainstream
Paintless dent removal (PDR). Most collision repairers are likely familiar with – but perhaps not necessarily skilled in – this method of repair…but that is rapidly changing as this less invasive method for dent removal is becoming the preferred method of choice. PDR may sound like a relatively new form of repairing vehicle damage, but it’s quite the opposite! It has actually existed for decades, rumored to have originated in a Mercedes Benz factory in Germany where workers would use a tablespoon and their thumbs to push out and remove dents. It’s come a long way since and continues to gain popularity at lightning speeds! Not only are more collision repairers using the method, but some companies have made this method of repair a major part of their foundation. “With PDR, you don’t use any paint and you fix the dent completely flat and there are highly specialized guys and girls out there trained to perform this method,” explains Scott Stayton, director of marketing and sales at KECO Body Repair Products, which specializes in making the tools for pulling dents. In fact, KECO has taken the idea and built on it further, developing what they call Glue Pull Repair (GPR), a new and less invasive way of repair that really is shaping the way for the future. “KECO came up with the term back in 2018 in order to make the distinction between PDR and GPR,” adds Stayton. GPR eliminates stud welding, so repairs are far less intrusive
with less post-pull work pounding, filling, priming and painting. It results in fast repairs with minimal, if any, body filler. KECO’s focus on GPR and improving auto body repair efficiency all stems from president Chris White’s passion for collision repair and his dedication to produce products that help technicians do what they do best, according to Stayton. “It was Chris’ vision that if we can repair small damage this way, why not repair larger damage with this method.” “It’s become more mainstream to pull the damage out with glue,” Stayton explains of GPR. “With traditional auto repair, technicians will grind the paint down to bare metal, spot weld tabs on the dent area and then pull it out. The problem with that is the small contact area of the tab is not an efficient way of moving the metal because the metal will want to move towards the point of contact, and you can create additional damage that would have to be straightened. It’s not that one can’t straighten it – it’s been done for years – but it will usually require the use of more filler and more time. “With GPR, we’re able to offer various sized plastic tabs and material that fit the shape of the damage. No vehicle damage is gonna be the same, and all vehicles are different. So when you place the right size and material tab in the correct location, we can create an efficient metal flow where it all moves out together, similar to how it was damaged. It’s just a much more efficient way to pull the damage out, and you don’t 14 February 2024 Texas Automotive
have to remove the paint.” GPR can also save on time by eliminating the need for removing interior pieces or the need to redo the corrosion resistance on the inside of a panel that can likely be burned off due to spot welding. In many cases, it can also help salvage panels that would otherwise need to be replaced, which is especially key in times of challenges such as parts shortages which have been an issue since the pandemic. “It’s starting to increase in popularity as people understand the benefits. Just like with anything, it’s a culture change. One of the biggest things KECO does is provide onsite training. Last year, we conducted training at over 200 shops for those who wanted to learn how to use our system. What they are essentially getting from us is a culture change as they are shown how to repair panels more efficiently, cleaner and safer.” GPR will be especially key as EV repairs increasingly come into play. “Some of the EV manufacturers won’t allow stud welding, and you would have to power down the vehicle. With our system, you would not have to do so unless the damage creates the need via OEM procedures..” Based on the attention this method is getting as it’s becoming more commonplace in shops all around the world, it surely makes sense for shops to gain some comfort and familiarity with GPR. TXA
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Cover Story
ABAT Celebrates It’s hard to believe that 10 years ago, ABAT did not officially exist yet. But in the association’s earliest days, it set out to address some pretty specific matters impacting collision repair shops in Texas. Since its inception, ABAT has made some huge strides for the auto body world and is still going strong as it celebrates a decade of dedication to this industry. In early 2014, the idea began to take hold during an estimating seminar at Paint Works (Tyler). Burl Richards (Burl’s Collision Center; Henderson) and Chad Neal, owner of Paint Works, had engaged in several conversations about the need for a local association, and although an attempt the previous year had proven unfruitful, the pair were not discouraged. Taking advantage of having a number of Eastern Texas shop owners gathered in one place during the estimating seminar, Richards and Neal presented their idea for a new association – and ABAT was “birthed” shortly after. “Chad and I basically capitalized on the opportunity that presented itself,” ABAT President Richards said at the time, attributing the favorable reception from shops to “the fact that PartsTrader had begun to be implemented, and these local shops were truly beginning to see that we had better join together, or the insurance companies were going to continue to control more and more of our businesses.” Richards worked with his attorney to establish the new association which was officially “born” on May 7, 2014. Originally, the association was going to be called the East Texas Auto Body Association, but fortuitously, that name was already taken, encouraging the founders to embrace the interest they had received statewide and welcome members from all over Texas. “This would not be happening if not for the enthusiasm and excitement shared throughout our region and beyond,” Richards 16 February 2024 Texas Automotive
shared after ABAT’s first meeting, held that June. “Everyone has been more than willing to assist and contribute when asked. It’s really been more about spreading the word, and once others hear about what is happening, they know that they are not alone and begin to realize that, together, we can truly take back our business for the best interest of our customers and the industry as a whole.” From day one, ABAT’s primary objective was “to take back our shops,” according to Richards. “We repair vehicles, and insurance companies sell insurance; it’s that simple! Who knows better and is more qualified to make these repairs than us? We work for the customer, so it is our responsibility to properly repair and restore their vehicle to its preaccident condition.”
Additionally, ABAT intended to offer educational opportunities to Lone Star shops to help them learn more from a technical angle as well as in terms of their rights. The plan to explore legislation to benefit consumers was also established very early on. Specifically, Richards pointed out, “Profit margins have decreased over the years, and we must become more profitable in order to provide the training and equipment necessary to perform repairs to the ever-changing technological advancements on today’s vehicles – and that can honestly be accomplished by being compensated for all repairs and processes that must be performed (not just the hand-picked
by Chasidy Rae Sisk
a Decade! operations that insurers want to pay for).” As ABAT gathered steam in the middle of 2014, Richards expressed his pleasure with the association’s immediate growth. “The response we have received has been more than I could have imagined. Going back to just six months ago, I felt like I was on an island by myself, and now, I have more faith and excitement about the future of our industry than ever. We will put the customer first, and everything else will take care of itself.” Before long, industry professionals from Texas had come together to form ABAT’s Board of Directors, a group whose diversity and passion for auto body excellence
strengthened the young organization (see Richards’ President’s Message on page 4 for more information on the dream team that makes it all possible). Executive Director Jill Tuggle also got involved early on in a parttime capacity, promoting the association’s events and facilitating its many efforts to better the industry for Texas repairers. Industry veteran Janet Chaney participated heavily in getting the association off the ground in its earliest days, and Richards notes, “She was a big help to us in the beginning and helped coordinate our
very first trade show in Fort Worth. Janet was instrumental in showing Jill and our association the ‘ropes’ and introduced us to many influential people in this industry.” As the organization grew, so did its need for full-time assistance, and ABAT offered the position to Tuggle who embraced the challenge with true Texan determination and grit. “My vision for ABAT is to grow our association and be a unified voice for Texas. We will bring education, government affairs, communication, industry networking and have fun doing it,” Tuggle promised when she accepted the full-time position in 2017. “I am excited to see the momentum continue to grow. One of the most inspirational things I have seen in my career is the way these guys have knocked down their walls of competition and have started to work together and communicate to make our industry better.” “Good things are about to happen!” Richards predicted a decade ago…and he was right! Immediately striving to pursue the goals set out by the association, ABAT’s second meeting in July 2014 featured a discussion about the process of introducing legislation by none other than Representative Travis Clardy (R-Nacogdoches), the legislator who has since sponsored every bill ABAT has put forth. ABAT introduced its first bill in 2017, legislation targeting the need for safe repairs which attempts to eliminate “gray” areas regarding what a proper repair is and how insurers indemnify policyholders. Although the House Insurance Committee approved the amended version by a six-to-three vote, the session ended before the House voted on it. Subsequent iterations of the bill have met a similar fate, but Texans aren’t quitters, so the 2025 legislative session will likely see another version of the bill, alongside proposed continued on pg. 23 17 February 2024 Texas Automotive
18 February 2024 Texas Automotive
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 19 February 2024 Texas Automotive
Ask The Expert
by Robert L. McDorman
A Well-Funded Mandatory Right to Appraisal Journey in Texas Continues Dear Mr. McDorman, I own and operate a collision facility in east Texas. I read last month’s editorial about Mr. Collins donating every penny he received from the $248,517.59 State Farm verdict in support of the fight for mandatory appraisal rights in all Texas motor vehicle policies. I further read that he entrusted you as the steward of these funds to determine how best to use them to help secure mandatory appraisal rights for all Texans. I, like Mr. Collins, completely trust your direction on this critical issue. Over the last decade, we have seen you staunchly and successfully help hundreds of our clients and others resolve their motor vehicle claims. Thank you so much for your service. Without your help and direction, many of these clients would have wrongfully had their vehicles taken from them by their insurance carrier with no chance of being made whole for their loss. Now that Mr. Collins has entrusted you with every penny of the State Farm verdict awarded to him, Texans’ eyes are on you to see how you can get this important reform to the finish line. What is the next step you will take in the battle to secure mandatory appraisal rights in Texas motor vehicle policies? Thank you for your question, support and kind words. For several months, I have written, “Until legislators pass laws to make the Right to Appraisal mandatory in Texas for all motor vehicle policies, we have no choice but to continue to advise our clients who have been harmed and cheated by their insurance carriers to fight like the third monkey in line to get onto Noah’s Ark when it has already begun to rain, and we will help.” I am now that third monkey in line and will do just as I have advised my clients over the years. It is my unwavering position that the removal or limiting of the Right to Appraisal in the motor vehicle policy is the enemy of a safe repair and the nail in the coffin for safe roadways for us all. It was on September 13, 2019 when Auto Claim Specialists first brought the need for the Right of Appraisal reform to the Texas Department of Insurance. On May 14, 2020 – after over seven months of anticipation – TDI finally issued its response. (You can find their response included in my editorial, “Beyond TDI, published in the July 2020 issue of Texas Automotive and available at grecopublishing.com/Texas-automotive-july-2020.) As we wrote then, our interpretation of the TDI response was that the issue we presented to them was actually one for the court system to address rather than the regulatory system. This is what we did and will continue to do until legislators pass laws to make the Right to Appraisal mandatory in Texas for all motor vehicle policies. Now, nearly four years after the TDI responded to our appraisal reform, we have referred hundreds of our clients to very Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached by phone at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com.
interested consumer advocate law firms to protect their interests when their insurance carrier has unlawfully harmed them and ignored their rights. Many of these have now settled before court with our client being made completely whole, including receiving substantial monetary damages. Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company was the first to go to court and result in a $248,517.59 jury verdict for State Farm’s unlawful behavior. The litigation that the jury decided over had many of the same unlawful optics we see most carriers levying against their policyholders daily. It is my goal on this journey to bring together in a formal setting the Texas Department of Insurance (TDI), Office of Public Insurance Counsel (OPIC), Texas Watch, the insured citizens of the great state of Texas and anyone else adversely affected by the removal of or modification to the Right to Appraisal in a motor vehicle policy, and ask that the Commissioner issue a ruling on this critical issue ahead of the 89th legislative session. I have provided a brief overview of positions issued by TDI, OPIC and Texas Watch on this sensitive issue. During the 88th Texas Legislature, Texas Watch, a bipartisan consumer advocate group, presented their study of the impact of auto appraisal to legislators. As quoted from the study, “Too often, insurance companies offer consumers too little to repair or replace their vehicle.” Their findings went on to note that in over 1,246 auto insurance claims they analyzed, the average difference between appraisal awards and insurance offers for repair claims was $5,307.35. Also, the average difference between appraisal award and insurance offer for total loss claims was $3,889.27. The complete Texas Watch “Impact of Auto Appraisal” report can be viewed at bit.ly/TXW-RTA. continued on pg. 22
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Ask The Expert continued from pg. 20 In addition, the very first recommendation in OPIC’s Report to the 88th Texas Legislature by Mr. David Bolduc was to require personal auto and residential property insurers in Texas to preserve the insurance consumers’ right to invoke appraisal in disputes regarding the cost to repair or the amount of a total loss. The complete OPIC Report to the 88th Texas Legislature can be viewed at bit.ly/OPIC2023. Finally, the TDI 2022 Biennial Report suggested the need to establish policy form appraisal guidance under policy considerations. The complete TDI 2022 Biennial Report can be viewed at bit.ly/TDI2022biennial. I have pulled together all these resources listed above regarding the mandatory Right to Appraisal in motor vehicle policies and taken them under advisement. Please watch for next month’s editorial with the findings and direction we will be taking to ensure all Texans have the mandatory Right to Appraisal in their motor vehicle insurance policy. As I have noted in several past editorials and public speaking engagements over the years, as a stark consumer advocate, Auto Claim Specialists has gone to agencies with well-documented facts seeking to help our clients who have been harmed by their insurance
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carrier and to bring awareness to these systematic atrocities. At each turn, we were told the only help was to seek legislation or a finder of fact. I believe now that the State Farm verdict is a matter of law, lawmakers will take note and see this as a time for change. Thank you, Mr. Collins, for believing in me to be a good steward of your State Farm settlement proceeds to help ensure that the mandatory Right to Appraisal in Texas motor vehicle insurance policies becomes law. The under-indemnification in total loss and repair procedure claims in Texas is rampant. Besides the higher settlements for total loss clients averaging 28 percent above the carrier’s undisputed loss statement, we have also reduced clients’ out-of-pocket expenses on repair procedure disputes such as in the above example. These under-indemnification percentages are staggering and harmful to Texas citizens. The spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue the loss settlement and under-indemnify the insured. Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased experienced independent third-party appraisers as opposed to more costly and time-consuming methods such as mediation, arbitration and litigation. In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claim handling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give their professional opinion as to the fairness of the offer. Please call me if you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always keep in mind a safe repair is a quality repair and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise. Sincerely, Robert L. McDorman TXA
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22 February 2024 Texas Automotive
Cover Story continued from pg. 17 legislation for mandatory appraisal rights (flip to page 12 if you need a refresher on why Right to Appraisal is so important for Texas consumers). Starting in September 2018, ABAT decided to partner with Thomas Greco Publishing to produce Texas Automotive, providing a new avenue to reach shops locally and nationally to keep them informed about what the association was doing to benefit the industry. ABAT also continued its promised push to provide educational opportunities to shops throughout the Lone Star State by hosting regular meetings in different locations and also by planting the seeds for what would eventually become the Texas Auto Body Trade Show. Little more than a year after establishing the association, ABAT hosted its 2015 Collision Industry Day featuring Mike Anderson (Collision Advice). “We expect this to be the largest industry trade event in TX since NACE in the early 2000s,” Richards acknowledged in the weeks leading up to the event, which was coordinated by Chaney. “Boy, were we excited when almost 100 auto body repairers showed up to get some valuable information they were able to take
home with them!” Richards now recalls. “Their reception of the idea – and thirst for more knowledge – led ABAT to plan the first Texas Auto Body Trade Show the following year, doubling attendance to over 200.” Since then, the show has grown exponentially year after year, with its most recent iterations attracting around 1,000 attendees. And the 2024 Texas Auto Body Trade Show is shaping up to be the biggest and best yet. In addition to the premiere educational slate and world-class exhibitors, ABAT has something new and exciting in store for this year’s attendees as the association plans to celebrate its double-digit birthday, but Tuggle is keeping tight-lipped for now, so be sure to register for the show taking place July 12-13 at the Irving Convention Center and stay up-to-date on what you can expect at abat.us/tradeshow. TXA
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