bodyshop business, july 2014

NACE Preview » Lessons from a Storm » Profit Centers

July 2014//Vol. 33 No.7

What to do when one ofthe mega consolidatorscomes to town.

SHOW ISSUE

Circle 1 for Reader Service

InsideJuly

July 2014 Vol. 33 No. 7

BODYSHOP BUSINESS (ISSN 0730-7241)(July 2014, Volume 33, Number 7): Publishedmonthly by Babcox Media, Inc., 3550 EmbassyParkway, Akron, OH 44333 U.S.A. Phone (330)670-1234, FAX (330) 670-0874. Copyright 2014Babcox Media, Inc. All Rights Reserved. Periodicalpostage paid at Akron, OH 44333 and additionalmailing offices. POSTMASTER: Send addresschanges to BODYSHOP BUSINESS, P.O. Box13260, Akron, OH 44334-3912.

Member, BPA Worldwide

Guess the Car ....................................................................................4e-Buzz ..............................................................................................6Industry Update ..............................................................................12Tech Tips ........................................................................................30Product Showcase..........................................................................100By the Numbers..............................................................................104

Battling the BigsFour small MSOs explain their strategy should one of the megaconsolidators move to their block.

ON THE COVER

24

34

44

FEATURESBUSINESS

The Perfect StormA Philadelphia-based shop talks about the business lessons itlearned after one of the worst winters in its history.

64SHOW PREVIEWNACE 2014

Rev Up for the Motor CityThe NACE/CARS Expo & Conference is taking place July 30-Aug. 2, and what better place to have it than Detroit?

EQUIPMENT

Clean That Booth!Cleaning and maintaining your spraybooth is essential toavoiding costly redos and keeping a tidy shop.

54 BUSINESS

Ringing Up the ProfitAdd-on businesses can be just the thing to add a boost to yourbottom line.

DEPARTMENTS

8101420

SHOP TALK

Editor’s NotesAfter a run-in with a deer, I’m now your customer.

DetoursIt’s time for NACE/CARS!

Clark’s CornerWhat separates the “wow” shops from the “ugh” shops?

Web Presence ManagementCybersecurity for your business.

Phot

o co

urte

sy o

f Bill

Bow

en

Guessthe Car

4 July 2014 | BodyShop BusinessCircle 4 for Reader Service

What vehicle MODEL does this picture represent? Fax your guess to

(330) 670-0874. Include name, title, shop name, city, state and phone

number. Or submit your guess with

our online contest form by visiting

bodyshopbusiness.com/guessthecar.

The winner will be randomly se-

lected from correct entries and

awarded $50. Entries must be

received by July 31.

*Only one winner will be selected.Chances of winning are dependent uponthe number of correct entries received.Employees of Babcox, industrymanufacturers and BSB advertisers arenot eligible to enter.

Andy Charnota, manager, Chicago

Collision Center, Chicago, Ill.

Soup + RA = (Toyota) Supra#136

See the August issue for

winner of Guess the Car #135.

Sonic boom = (Chevrolet) Sonic

Reader Contest! Win $50!

#134 WINNER!

SOLVED!#135

e-Buzz

6 July 2014 | BodyShop Business

Find 1,000’s of BodyShop Businessarticles online at www.bodyshopbusiness.com

:BodyShop Business Readers Group

Who’s responsible, and how do we fix this?Some would say that this is all the responsibility of the shop,some believe the problem is the DRP environment. I wouldsuggest that both bear responsibility for work that is totally...

The latest online content from BodyShop Business

Defying the OddsComment by stopdrp.com:Thumbs up! What you did isexactly what I'm fighting for: tobring the American Dream back.You’re living what I call the“American Dream.” You’re doingthe same thing I did 25-plusyears ago. Greedy CorporateAmerica and crooked politiciansmake it just about impossible foranyone to live the AmericanDream. I am 100 percent inhopes of you being very success-ful, and I really believe you willbe. There are a lot of people likeme all over the country fightingfor people like you, and we aregoing to win – not only in thisindustry, but all industries. Again,I wish you the best of luck! Ifthere’s anything we can do tohelp you, please let us know.

Comment by Bobby Brain: Unfor-tunately, you’re living in fantasyland. With all of the new advancesin the automotive industry (e.g.aluminum, carbon fiber, fiberoptics, AHSS at 1800 mpa, etc.),you’ll need to invest substantialamounts of capital in equipmentand training all of the time. Withthe low labor rates, the insurancecompanies set it to be impossibleto get any return on investment,making it a loser to be involved inthe collision repair industry. Thelarge MSOs will be the only shopsout there to repair the new cars asthey will have large designatedshops that will have the equip-ment for those vehicles and havethem towed to the locations.

Comment by hippy: I don't nor-mally like to comment on things,but I thought I should say a fewwords. I’m a body shop owner ofeight years and have been paint-ing cars since I was a kid in myfather’s shop. I do it because I loveit. I met Ben a while back and gotalong great with him right fromthe start. It’s refreshing to meetsomeone with passion and enthu-siasm for what they do, especiallywhen it’s the same thing you feelthat way about. He doesn't treatme as competition. In fact, heonce said to me, ‘We're bodymen,and we have to stick together.’ Socongrats on the article, Ben!

They Said It On

bodyshopbusiness.com

Mark Schaech

Like • Comment • Share

June 18 — Attendees of the Sherwin-Williams EcoLean

Workshop on the production floor of Michael Waltrip Racing...

@BSBMagazine:Attention, young #automotive technicians!

Don’t miss this event at #CARS2014:

Why You Shouldn’t Go to the First Shop YourCar Insurance Recommends youtube.com

http://www.packbrotherscollisioncenter.com/Don't go to the first auto body shop your

insurance recommends! It's your car, it's your choice! If you've had asignificant repair to your vehicle, make sure you get a post collisionrepair inspection...

Once I arrived home, I grabbed aflashlight and inspected the damage.Busted fender. Smashed headlight.Cracked bumper cover. Bunged uphood. Smashed-in grille, with thefront grille molding I had so lovinglyWindexed that morning gone. Wasthe radiator damaged too? Possibly.

I was devastated because I hadfallen in love with the ’09 HondaCivic ever since purchasing it in

November 2012. I lovedhow compact and

fun to drive it was.I detailed it

every week,applying tireshine to it andWindexing the

chrome. That

Friday morning, I had even cleanedthe glass with a microfiber cloth andwater.

I found myself firmly in the shoesof your average customer, and it feltawful.

I texted a friend of mine whoowns a body shop, and he set me upwith a tow truck. I was impressed bythe empathy shown by both theinsurer and the shop manager, whoboth asked if I was OK. The call cen-ter rep even told me how she had hita deer once as well. I don’t know ifmy friend’s shop is on my insurer’sDRP, but when I told her the car wasalready at that shop, there was noattempt to steer me somewhere else.

Shortly after the incident, I gotover my pain and realized the carwould come back looking betterthan it had before. But I gained anew appreciation for what you’redealing with: customers who are in

a fragile frame of mind when theysee their second biggest invest-

ment and the thing that takesthem to work to feed theirfamilies put out of commission.

Editor’sNotes Publisher

S. Scott Shriber, ext. 229 [email protected]

EditorJason Stahl, ext. 226 [email protected]

Managing EditorGina Kuzmick, ext. 244 [email protected]

Contributing EditorsMitch Becker, Mark Clark,Mark Claypool, Erica Evers-man, Tom Ferry, Curt Harler,Kristen Hampshire, HankNunn, Carl Wilson

Graphic DesignerLisa DiPaolo, ext. [email protected]

Advertising ServicesKelly McAleese, ext. [email protected]

Director of CirculationPat Robinson, ext. [email protected]

Director of eMediaRandy Loeser, ext. [email protected]

Subscription ServicesEllen Mays, ext. [email protected]

Tel: (330) 670-1234Fax: (330) 670-0874Website: bodyshopbusiness.com

Corporate

Bill Babcox, PresidentGregory Cira, Vice President,

Chief Financial OfficerJeff Stankard, Vice PresidentBeth Scheetz, Controller

A limited number of complimentary subscrip-tions are available to those who qualify. Call(330) 670-1234, ext. 288, or fax us at (330) 670-5335. Paid subscriptions are available for non-qualified subscribers at: U.S.: $69 for one year.Canada/Mexico: $89 for one year. Canadian ratesinclude GST. Ohio residents add current countysales tax. Other foreign rates/via air mail: $129for one year. Payable in advance in U.S. funds.Mail payment to BodyShop Business, P.O. Box75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.

The deer strolled out in front of me with no warning. I was roundingone of the many curves on the scenic Shoreway in Cleveland thatoffers a fantastic view of Edgewater Beach and Lake Erie Fridaynight. I had no chance to react, smashing into it with the right front

corner of my car at roughly 50 miles per hour and turning it into so manypounds of hamburger. I yelped a few choice curse words, but other than thatsped along my (merry?) way toward home.

Oh Deer!

Jason Stahl, Editor

Email comments to [email protected]

It’s Time for NACE/CARS!

Well, it’s time to pack our bags andhead to our very own collisiontrade show. Yep, NACE/CARS ishere for 2014. I have to tell you

that I’ve been in-volved in much ofthe planning, and Ican assure you thatASA has developedand organized ashow to remember. Iurge you to go tothe website(www.naceexpo.com)and see allthe greatevents andeducation-al oppor-tunities toparticipatein. Detroit will be the collision mecca July 28-Aug. 2.

From a professional stand-point, the educational offeringsare unbelievable. Whetheryou’re looking for technicalknow-how, industry trends,business procedures or the lat-est repair techniques, it will allbe available in Detroit. The sup-port from the automobile manu-facturers this year is nothingshort of incredible. If it’s in ourindustry, you can learn about it there.

If you’re looking to kick back and enjoy abig city, there’s lots for you to do. DowntownDetroit is home to the Tigers, Lions, RedWings and Pistons, as well as many other

local attractions. Our friends, the Canadians,are just across the river in Windsor with allthat they have to offer and see. The city is inthe middle of a renaissance, and you owe it to

yourself to come and see allthat it has to offer.

If you’re a car person, whatmore do I need to say? This isthe Motor City – Telegraph,Woodward, The Rouge, theFisher Building and on and on.

The Satur-day sched-ule is so fullof activitiesto do, youcouldn’t getit all done ifyou stayedthe follow-ing week.

Just take a look atthe “Places to Go”on pg. 66 and you’llsee what I mean.

There are over6,000 collision repair shops withina four-hour drive;this is the place tobe in late July. It hasbeen a long timesince our show hasbeen here in ourneck of the woods,

and we should all get together and see what’snew. Our entire team will be on hand, and welook forward to seeing you there and talkingabout the industry.

See you in Detroit!

Detours By S. Scott Shriber, Publisher


(Clockwise from top) The Tigers, GreenwichVillage, Woodward Dream Cruise and Motowntour all await visitors to Detroit. (Photoscourtesy of MeetDetroit.com)

It wasn’t long ago that an anonymous body shopowner created StopDRP.com to educate con-sumers on steering, appraisal clauses and dimin-ished value. Now, another anonymous shop

owner has created BodyShopMedia.com, urging colli-sion repairers to use the power of social media (espe-cially Twitter) to communicate with one another andunite over issues such as PartsTrader and not gettingpaid for procedures necessary to return vehicles totheir previous condition.

A statement on the homepage of the website states: “We are a private firm looking out for the collision

industry. We are connecting body shops across theU.S. to see what everybody else has to say. This blogis for all of us to share our opinions and thoughts. Ascars get more technical in the industry, we can shareadvice and ideas with each other. We hope you makefriends on here and also get some good ideas.”

The site has a “Shop of the Month” contest wherethe winner is the shop with the best tweet. It also hasa link to StopDRP.com and a video showing tips andtricks when using certain collision products. There isalso a video of George Avery explaining why StateFarm created PartsTrader.

IndustryUpdate

12 July 2014 | BodyShop Business Circle 120 for Reader Service »

Sherwin-Williams TalksLean at EcoLean Workshopin CharlotteSherwin-Williams Automotive Finishes held an EcoLean Level 1 WorkshopJune 17-18 in Charlotte, N.C., providing collision repairers the essentials ofrunning an efficient shop and also a glimpse of Joe Gibbs Racing andMichael Waltrip Racing. Steve Feltovich, manager of Business ConsultingServices, led the first day’s discussion, talking about the general principlesof lean and the Toyota Way. The following day, Judy Lynch, manager ofCollision Repair Design Service, went over the principles of 5S.

BodyShopMedia.com Urges Body Shops to Use Power of Social Media

The Honorable Judge Gregory A.Presnell, senior U.S. districtjudge for the U.S. Court for theMiddle District, has filed an or-

der in an effort to attain more specificinformation relative to the lawsuit ini-tially filed by 20-plus Florida auto bodyrepair shops against dozens of insurers.

In an effort to gain a more thoroughunderstanding of the issues leading tothe lawsuit, Presnell dismissed the casewithout prejudice allowing the plaintiffattorneys to modify, amend and re-plead the complaints to meet the court’srequest. The judge has asked that theplaintiffs provide a more detailed com-plaint listing specific actions or inac-tions by each of the defendant insurers,along with the specific damages relativeto each, on or before June 27, 2014.

In another ruling, Presnell dismissedthe defendant insurers’ request for thecourt to dismiss the repairers’ lawsuitswhich, by way of the judge’s ruling,were “moot” and summarily deniedthrough the judge’s dismissal.

This lawsuit is similar to those filedin Mississippi and other states by At-torney John Eaves Jr. earlier this yearon behalf of a group of body shopowners who accused more than threedozen insurance companies of conspir-ing, through DRPs, to manipulate labor

rates and other shop charges to reducetheir claim costs.

The suit alleges that State Farm is atthe heart of an effort by insurers to sup-press labor rates, coerce shops into ac-cepting less than actual or market costsfor materials, refuse to pay for many re-quired procedures and punish non-compliant shops through steering. Thesuit alleges these actions constitute tor-tious interference, unjust enrichmentand violation of Sherman Act price-fix-ing and boycotting prohibitions. Theseactions, the suit states, place the shopsin “the indefensible position of eitherperforming incomplete or substandardrepairs and thus breaching their obliga-tions to automotive owners to returnvehicles to pre-accident condition, orperforming labor and expending mate-rials without proper compensation.”

The suit also seeks an injunction pro-hibiting the insurers from “directing, ad-vising or otherwise suggesting that anyperson or firm do business or refuse todo business” with any of the namedshops; using boycott, coercion or flat-ratemanuals to establish or control repairshop pricing; and requiring the shops toparticipate in any parts procurement pro-gram (i.e. PartsTrader) and unspecifiedcompensatory and punitive damages suf-fered by the represented shops.

surer refused to pay afterthe insured’s car wasfixed. The short-pay liti-gation was filed by Ron-nie Pack, owner of PackBrothers, on behalf of hiscustomer using a Powerof Attorney.

According to the in-sured customer’s policy,Allstate is obligated topay for necessary andproper repairs of his ve-

hicle. The total amountcharged for repair of thevehicle was $3,445.27, butthe insurer only paid$2,503.55 for the dam-ages.

The customer is enti-tled to the full amount of$891.72 owed to PackBrothers plus interest ac-crued since his accident,attorney fees and anyother punitive damages.

Illinois Body ShopOwner Posts Feather,Prime and Block Videoon YouTube

An Illinois shop owner

has created a 20-

minute video and

posted it on YouTube to

demonstrate all of the steps

in the feather, prime and

block procedure that must

be performed to bring a

repair panel back to a new,

undamaged one.

Russ Hoernis of Hoernis

Auto Body in Belleville, Ill.,

starts off the video by stating:

“Feather, prime and block

is a refinish operation that

for years has been snubbed

by the insurance industry as

either an included operation

in repair times, or they have

just been unwilling to com-

pensate shops for the work

and materials utilized. I have

researched the CCC, Auda-

tex and Mitchell manuals,

and each estimating system

has independently stated

that feather, prime and

block is a necessary opera-

tion that must be performed

to bring a repaired part back

to a new, undamaged panel.

Each manual also clearly

states that published refin-

ish times are for new,

undamaged panels.”

After documenting the

entire operation, Hoernis

goes over the labor and

materials used and

ultimately calculates that

not getting paid for this

results in roughly $50,000

per year in lost revenue to

his shop.

Hoernis concludes the

video by saying, “I hope for

whoever is watching that

this clarifies some of the

issues we are up against.”

»| Industry Update |«

www.bodyshopbusiness.com 13« Circle 121 for Reader Service

Florida Judge Denies Insurers’ Requestto Dismiss Body Shops’ Lawsuit

North Carolina Collision Shop Wins Short-Pay Arbitration Over Allstate

Pack Brothers CollisionCenter in Belmont, N.C.,has won a short-pay arbi-tration case in a NorthCarolina court againstAllstate.

On May 27, a LincolnCounty judge ruled in fa-vor of awarding a PackBrothers customer$891.72, which was owedto the body shop for colli-sion repairs that the in-

In several classes I teach for paint, body &equipment (PBE) jobbers, I describe theuniverse of American body shops asfollows:

5 percent: Ugh!These shops haveno interest in calcu-lating financialnumbers of anykind, improvingtheir production efficiency (what’sthat?) or new andfaster equipment. They’re too busy fixingcars to get any better at it.

30 percent: Good. These shops knowthey should be measuring performancesomehow and organizing their workspacesmore efficiently. They also understand thatmore productive equipment would eventu-ally pay for itself but are unclear how tomake any time to implement those neededimprovements because all their repairsmust be delivered by noon this Friday.

30 percent: Better. These shops have fig-ured out that the only way to make seriousmoney in collision repair is to beat the flatrate times at every opportunity. They meas-ure a few numbers, the painters mix mostof their liquid over an electronic scale, theshop sets aside some funds annually to buyfaster equipment and even holds occasionalmeetings with their techs to discuss howthey can improve.

30 percent: Best. These shops are track-ing numbers all the time. From productionefficiency percentages to parts-to-labor ratios, close rates to sales mix (how muchof their sales are labor, parts, P&M and sub-let), they know where their shop perform-ance stands today and have specific future

goals to meet. They communicate regularlywith everyone in the shop, from the detailkid to the receptionist, and all employees

have clear per-formance targets.These shops got towhere they arethrough lots ofhard work andconsistent follow-through.

5 percent: Wow!These top per-

formers also know that communication iskey and that they can’t identify a win ifthey don’t keep score of everything all thetime. They share numbers with managers,have regular shop meetings to examinecurrent performance and receive feedbackon improving it. They mix every drop ofliquid over their smart scale and tie all ofit to an RO number, have the fastest, latestequipment because they know speed pays,and get up every morning with a goal ofgetting better by nightfall. Of my five shopsegments, these folks are the easiest toidentify. Walk from the parking lot to theoffice to the shop floor, look around andsay “Wow!”

Clean as a Whistle » As I travel aroundthe country, I’m often invited to the localsuper shop. “You gotta see this guy,” myhost says. These various “wow” bodyshops have lots in common with each other,which is not surprising since all body shopsare in the same business and thesebusinesses have clearly excelled at it.

First, second, third and fourth on all thesuperior players’ shop checklists is “clean.”As every insurance company survey ever


By Mark Clark

Separating the “Wow” from the “Ugh”

Clark’sCorner

conducted has concluded, a cleanpresentation is No. 1 on the con-sumer’s preference list. Every year,every survey, forever.

One thing that usually distin-guishes the wow shops from thebest shops is their production

spaces. Best shops look super pro-fessional and clean from the front.Their parking lots, windows, wait-ing areas, estimating bays andsales offices all sparkle. Their shopspaces often look like dirty, dustycollision repair takes place in them.

Wow shops’ production spaces arejust as clean, well lit and organizedas their front ends. All that extracare is worth it because they turnout top-quality repairs reallyquickly – just what the insurers’CSI surveys all want to see. Whenyou step through the door intothese shops’ production spaces, thefirst thing out of everyone’s mouthis, “Wow!”

Presentation » Wow body shopsall seem to have great signageboth outside and inside. On theexterior, the lighted, profession-ally made signs look big-timeretail. Say what? Illuminated signsfrom full service, commercial signcompanies are very expensive.These wow shops all had thenearby stamped-vinyl place dotheir inside signs but paid the bigbucks for real-deal outdoor adver-tising signs.

The parking and estimate areasare clearly marked with evenmore professional signs. In nouncertain terms (two signs forevery command), they direct ap-prehensive customers where togo next. Not to mention the en-tire lot itself is squeaky clean –there are no weeds anywhere,there are mowed and trimmedgrass areas (it does look cool),parking stall lines are freshlypainted, and there is a shadedcover if the shop is in an extrasunny market.

Check out the sparkling glass,too. The difference between a$200 auto detail and a $5 carwash in part is the glass. Wowshops keep all their window anddoor glass crystal clean everyday. It’s a subtle clue, you think,but next time you’re shopping atthe mall, check the big retailer’sdisplay glass. Smudge-free glassmakes a difference and sends the“we care” message your shopwould like your potential cus-tomers to hear.

»| Clark’s Corner |«


Inside the brightly lit receptionareas, the top shops have waitingspaces as nice as the ones in doc-tors’ offices. Plus, there’s free Wi-Fiand professional seating areas withattractive furniture (nothing leftover from the owner’s old livingroom set). Current issues of boththis week’s photo and news maga-zines are racked neatly nearby. Akid’s play area and a guest desk ortwo for those trying to work whiletheir estimate is created sends thethoughtful message of, “We’re gladyou’re here, and please be comfort-able while we complete the paper-work” – even if the customerdoesn’t have kids or a critical work project.

Perception Is Everything »Notice that none of my bodyshop segment descriptions had

anything to do with actually fix-ing the collisions. I’m willing toconcede that even the “ugh”shops could perform a safe,attractive repair. My point is thatMrs. Smith (my universalconsumer) won’t give them thechance. If your shop doesn’t lookas nice as your best-looking com-petitor, it doesn’t matter howgood your techs are or how accu-rately your equipment performs.She wants to go somewhere thatlooks like they’ll take good careof her second-most valuable possession.

It isn’t easy; neither the bestshops nor the wow shops wereborn looking like that. It takes amajor daily commitment to keepeverything clean and dust free. Ittakes an ongoing commitment tobuy better equipment, train faster

processes and constantly improve.It takes an iron-clad will to perse-vere in the face of the many obsta-cles on the road to topperformance. Wishing your shopwere better won’t help.

Make those business improve-ment commitments and the nexttime I’m speaking in your area,the locals will want to take me toyour wow shop. I look forward toseeing it. BSB

Mark R. Clark isowner of Profes-sional PBE Systemsin Waterloo, Iowa.He’s a popular industry speaker andconsultant and iscelebrating his 26th

year as a contributing editor toBodyShop Business.

»| Clark’s Corner |«


Web PresenceManagement

Cybersecurity for Your Business

Password: fluffy1234. One of ourclients asked us to use this for set-ting up his email, telling us it wasthe name of his wife’s cat. “Ad-

min” was another client’s request for ausername, and he wanted his password tobe 1234. Nope! No way, no how! We vigor-

ously refuse to put unse-cure passwords in place.“But they’re hard to re-member, I have so manyof them,” said one busi-ness owner. “I just keepthem all the same, itmakes it easier to keep itall straight,” said anoth-er. And that makes it eas-ier for thieves to makelife a living nightmare.And if they aren’tthieves, they are, at thevery least, vandals.

Real Threats »Consider this a warningshot across your businessbow. There are plenty ofpeople out there gunningfor weaknesses in web-

site passwords, email passwords and data-bases with information of value – names,addresses, phone numbers, email andcredit card information. How secure areyou and your business?

Threats to your cybersecurity are all tooreal. If you haven’t been impacted by iden-tity theft, hacked emails and websites ordata breaches, consider yourself lucky. Toprotect yourself – and your business – fromcybersecurity threats, you need a plan.

Here are nine things you need to address:1. Policies and training: Set up rules and

policies to protect your business. Have sys-tems in place, then train employees and setup consequences for non-compliance.

2. Passwords: Strong passwords need tobe set up. Here’s a free source for the cre-ation of a highly encrypted password:http://passwordsgenerator.net/. Some policiesto follow include:

� Don’t use the same password acrossmultiple accounts.

� Passwords should be at least 15 to 20characters long and include numbers,upper and lower case letters, andsymbols.

� Don’t use family names, initials, pets, birthdates, addresses, towns or full words in general, phone num-bers or mathematical sequences aspasswords.

� Do not permit your browser or FTPclient programs to save your pass-words. Any password saved in thismanner can easily be discovered with asingle click using some programmingscript.

� Do not access important, password-protected accounts from public com-puters or someone else’s computer.

� Change your passwords regularly.Monthly is best, quarterly at the veryleast.

� Keep passwords straight using phoneapps or an online password manage-ment system. PC Magazine suggeststhe following: KeePass (free, downloadto your computer), www.keepass.com;LastPass (free, cloud-based), www.lastpass.com; RoboForm Desktop 7 (for

By Mark Claypool


If you haven’t been

impacted by identity

theft, hacked emails

and websites or data

breaches, consider

yourself lucky.

one PC), or RoboForm Every-where 7 (multiple PCs) (from$29.95) www.roboform.com. Al-ternatively, save your pass-words as plain text, thenencrypt them with AES Cryptor AxCrypt.

� When employees leave thecompany, change all pass-words that person was familiarwith.

3. Virus/malware protection:Your computers must have thelatest virus and malware protec-tion installed and operating. Itmust be updated regularly, thenhave a full scan run after eachupdate.

4. Firewall: A firewall should beset up for your company’s Internetconnection. Talk with an IT profes-sional about what that entails. Firewalls protect your private net-work data from being breached byoutsiders.

5. Mobile device protocol:Mobile devices used by yourteam can pose significant threats.They may contain confidentialinformation and are frequentlyused to access company net-works. Password protect thesedevices, and have security appsinstalled. Encrypt all importantdata. Devices connecting to pub-lic networks at coffee shops, libraries, schools, etc., are partic-ularly vulnerable to attack.

6. Back up data: Nothing is sacred. Back up your data regu-larly. Email, documents, spread-sheets, databases, accountingfiles, HR files, etc., are irreplace-able and should be backed upregularly, preferably automatical-ly. Services like Carbonite or Bar-racuda are great for this purpose.If you make your own backups,put them on two external drivesand keep them in a safe depositbox. Alternate these drives witheach backup.

7. Wi-Fi: Secure your companyWi-Fi account with a highly en-

crypted password, which will helpblock outsiders from getting intoyour company network. If you of-fer a public access point for cus-tomers to use, make it separatefrom your business network.

8. Credit card processing: Workclosely with whatever service youuse to process credit cards andmake sure you’re using the mosttrusted, validated and anti-fraudsystem possible. Use an isolatedcomputer for these transactions,not one used for going online.

9. Give limited access: Give access to employees only on aneed-to-know basis, only for theprocesses they use. No person other than the owner should haveaccess to all this information. Wecall this having the “keys to thecastle.” Give these keys to a trustedattorney who’s in charge of theowner’s estate should somethinghappen, with strict instructionsthat these be given out ASAP to aspecific person in the event of theowner’s demise.

Not So Hard » Sure, it’s hard todo all this, but it’s much harder tofix a data breach, undo the damagedone by hackers and apologize tocustomers for their personal infor-mation being stolen. Set a goal toget this done before the end of theyear. BSB

BSB Contributing Ed-itor Mark Claypoolhas more than 30years of experience inthe fields of workforcedevelopment, appren-ticeships, marketingand Web presence

management with SkillsUSA, the I-CAR Education Foundation, Mentorsat Work, VeriFacts Automotive and theNABC. He is the CEO of Optima Automotive (www.optimaautomotive.com), which provides website design,SEO services and social media manage-ment services.

»|Web Presence |«


COVER STORY

Four locally ownedsmall MSOs sharetheir thoughts on howthey plan to retaintheir market shareshould one of the megaconsolidators move totheir block.

By Gina Kuzmick


In a world where Walmart and McDonald’s reignsupreme, it’s sometimes difficult to even see themom and pop shops of yore beyond the boldred letters and golden arches that seem to adorn

every other block in America. But we as consumersknow they’re out there, and they still retain theirown loyal followings to stay in business and staveoff competition.

As members of the collision repair industry, weoften divide ourselvesinto two categories: thebig guys vs. the littleguys. But what aboutthe in-betweeners? What

are they doing to keeptheir businesses thriving

and out of the hands of megaconsolidators?

Ask Pat Beavers, managingpartner of CollisionMax in

Philadelphia, and he’ll tell youthat his business’s experience and knowl-

edge of their market gives them the upperhand. Since its inception in 1977, the businesshas grown to 11 locations between Penn-sylvania and South Jersey. With ServiceKing’s recent purchase of Sterling CollisionCenters, the large-scale consolidator willbe moving into CollisionMax’s area, which

means it could potentially disrupt their relation-ship with insurance carriers.

“As we view it, the ‘Big Four’ all have national re-lationships with insurance companies and we are apro-direct repair organization,” said Beavers. “Sowe are concerned that [Service King] could have animpact on our claims and customer base. The high-level relationships they have could impact our rela-tionships that we’ve worked to develop for years,but that’s the unknown for us.”

Despite this concern, Beavers is reassured thatCollisionMax will uphold its longstanding presencein the Philadelphia market.

“We’re local, family owned and operated, andwe’re not a franchise,” said Beavers. “Almost a thirdof our people have been with us for 10 years, sothere’s a strength over a new corporation that’s notfrom the market and doesn’t understand some ofthe market nuances. We can touch our 11 locationsin any given day, so we’re accessible to all our storesbecause of proximity.”

To maintain that feeling of proximity, Beavers reg-ularly meets with his management staff to discussperformance and how to maximize the business in

its market as much as possible, which includes ex-panding the company’s brand identity.

“We’re working on our name in our market andhaving some top-of-mind presence with the retailconsumer so they identify us in the markets weserve as the shop of choice,” he said.

Forming Alliances » Beavers also points toanother unlikely reason for CollisionMax’s success:his current, local competition. By keeping an eyeon one another, CollisionMax and similar well-established shops in the area have been able tostay on their toes and create their own exclusiveand competitive marketplace.

“If we didn’t have some of the good operators inour market already, we probably wouldn’t be as ad-vanced as we are,” he said. “I think because of ourcompetition locally, we and our competitors havemade a market that may not be that easy to comeinto and take over because we have all watchedeach other and didn’t ignore each other – and ourcompanies got better as a result.”

Similarly, Richard Fish, owner of Coast CollisionCenters in Oceanside, Calif., actually admires collisiongiant and local competitor Caliber.

“They’ve always had great prowess in terms ofmarketing, and they’ve been able to strike big dealswith insurance carriers,” Fish says. “That gives themgreat precedence over other MSO organizations, andthat’s always a challenge.”

Fish has been in charge of Coast since 1996 andnow owns four locations in the San Diego area. Heattributes his success to implementing lean practicesand Six Sigma in his business, but also allying withFix Auto.

“Being aligned with Fix Auto allows me to havemy cake and eat it, too. I’m the owner and operator offour body shops. If I were branded on my own, Iwould have felt the market demand to be up to six to10 body shops, so [my alliance with Fix Auto] willallow me to grow at a pace I feel good about.”

Fish says that aligning with the Fix Auto namewill give his shop boosted marketing power as well.In addition, he’s linked to a number of “peer shops,”which grants him opportunities to scope out thefriendly competition and gain ideas as to how toimprove his own business model.

“When you see someone doing something no-tably better than you time in and time out, there’sa paternal feeling there that allows you to reachout to those shops and ask how they’re doing itso much better than you,” he said. “You mightend up even going to visit them to share their

COVER STORY » Battling the Bigs

www.bodyshopbusiness.com 25

best practices, and that collabora-tive atmosphere is something that’svery powerful.”

Eye on the Competition » Fish believes in acknowledging the com-petition rather than ignoring it.

“I think ignoring the competitionis shortsighted and would prevent

you from learning about someinnovation that a competitormight be bringing to the table,”he said. “Having said that, I wouldn’tspend too much time focusing on it.We’re focusing on our own level ofexcellence, knowing full well that ifwe achieve that there are very fewcompetitors who can keep up.”

However, like many businesses,some worries still creep up in theback of his mind.

“I’m a buyer, so the thing I worryabout now is the fervor that’s hap-pening in the marketplace in termsof valuations. With Service Kingcoming through the market recentlythrough the acquisition of Sterling,and Caliber continuing to expandin Southern California, you wouldthink they have enough marketpositioning in the area, but appar-ently they don’t think so. I hope Idon’t get priced out of the valuationmarketplace.”

Still, some shops say that largeconsolidators haven’t had any im-pact whatsoever on their respectivebusinesses. For Jacob Nossaman,owner of Collision Works in DelCity, Okla., the key to keepingneighboring giants Caliber andService King away is to implementa strong company culture and employee environment.

“I feel that if you focus on yourorganization with 110 percent eachday, then the competition is not anissue,” he said.

Established by Nossaman in2001, Collision Works has grownfrom two to four locations in itsmarketplace. One of the factorsthat allowed his business to growwas using a management softwareplatform that’s specifically de-signed for large single-shops andsmall MSOs.



Keys to MaintainingMarket Share in aConsolidationEnvironment1. Aligning with an established

name or improving your

brand identity.

2. Understanding market

nuances.

3. Establishing a strong

company culture.

4. Being an active and

proximate owner.

5. Knowing your competitor

in and out.

“The management software isalso your accounting software, soyou do everything out of it,” hesaid. “It improves accuracy and al-lows you to look at multiple loca-tions off of your PDA. You can be anywhere and you’re still at your office.”

While Service King and Caliber

have more buying power as cor-porations, Nossaman is confidentthat Collision Works’ stable, smallbusiness model will give him the advantage.

“I’m the owner and I’m involved,” Nossaman says. “Werun a family-oriented, locally ownedbusiness. There’s no corporate

red tape; we make decisions and connect fast.”

No Threat in Sight » While con-solidators continue to sweep acrossthe nation, there are still some partsof the U.S. that haven’t yet felt theimpact. Conner Brothers in Rich-mond, Va., is a small, family-ownedbusiness with four locations and nomega-consolidator in sight. But thatdoesn’t mean it’s not on owner KevinConner’s mind.

“We’d have to step up our gameif they did come to town,” he said.“They could really take a lot of workfrom us.”

Although the shop is out of thehands of consolidators for now, Con-ner says he still wants his staff awareof the potential threat they pose.He meets with his manager everyfew weeks to discuss strategies thatcan help to improve their businessmodel – and keep the big guys atbay. Because according to him, losingto the competition stems from igno-rance – something he doesn’t wantto succumb to.

“Having not experienced [consol-idation in our market], I think mybiggest fear is ignorance. We don’tknow what to fear.”

While some might turn a blindeye and deny the fact that consoli-dation is indeed a threat to manyshops, Conner says he actually looksforward to learning more about the topic.

“If you don’t know your competi-tor inside and out, all you’re doingis setting yourself up for defeat.They’re going to eat you alive.”

These four businesses eachshared one commonality that’s al-lowed them to keep mega consol-idators at bay: the involvement ofan active and proximate owner-operator. And as long as their own-ers stay active, the customers willkeep on coming.

“I plan on being in the businessfor many years to come, so theprospect of selling my company isn’ton the table,” said Fish. BSB



You want to hear a great horrorstory? Ask a collision shop owner.Most of them start with, “Re-

member that car we worked on…?” You’re probably thinking, “Yeah,

everyone has a few of those stories.What’s the big deal?” But the storyonly starts with “that car;” the horrorenters when you have to pay yourparts bills and do your payroll.Yeah, that’s the horror story I’mtalking about! As you’re cuttingchecks, you remember all the timeyour staff wasted working on “thatcar” with three techs not producingrevenue because they were standingaround with their chins in theirhands. The clock was ticking anddollars signs were flying out thewindow.

It just goes to show that it’s almost impossible for anyone tokeep up with the latest vehicle tech-nology. Electronic systems, alterna-tive materials, new constructiontechniques designed to save weight,tricky engineering to improve aero-dynamics, etc.

I can listen to shop horror storiesfor days on end, and it drives me tolook at the most searched for repairprocedures in our database to seewhat’s causing those stories. As mygrandfather always told me, “It’s easierto learn from someone else’s mistakes.”Too bad I didn’t heed his advice whenI was younger. The older I get, thewiser the “ol’ man” gets.

In the May 2014 issue of BodyShopBusiness, we told you about the mostrequested OEM procedure from ALL-DATA Collision, which was the re-moval and replacement of the frontbumper fascia on a 2014 Jeep Grand

Cherokee. For this month’s Tech Tips,I decided to focus on those top articlesthat folks are currently looking at to give you some insights into what other shops are running into right now.

Here are five of the most requestedvehicles/repairs among subscribersto ALLDATA Collision. See if any ofthese ring a bell for you.

2013 Hyundai SonataDTC B1742 – Airbag Event #1 (FrontDriver’s Side Door/Pressure-Side Impact Sensor)So you repair damage to the frontdriver’s side door on a Sonata, including the airbag and side impactsensor. You’re ready for a break before the next job, but the airbaglight is still lit. Unlike a conventionalacceleration sensor, this vehicle isequipped with pressure-side impactsensors that sense air pressure in adistorted door at the time of a crash.The SCM detects the impact signalsof the pressure-side impact sensorand does its electronic magic to determine if the driver is going toget hit upside the head with a puffywhite bag.

Verify that your techs are properlyreassembling these doors after they

perform their R&I operations. Therepaired door must be airtight. Any-thing that compromises proper pres-sure within the door will generate acode. Something as seemingly in-significant as a broken clip may bethe culprit. You might say you’reunder a lot of “pressure” to get thisjob right.

2014 Ford FusionFront Door Skin PanelIf you’ve ever had to perform this re-pair, you already understand why somany technicians may need OEM in-formation to do it right the first time.To put it bluntly, this procedure is a bear.

Removal of the skin panel beginswith grinding it off along theperimeter of the door. Then, theoriginal adhesive residue must betrimmed off with a utility knife.Replacement requires bonding thepanel with adhesive and MIG welding in two spots. I guess this procedure could be called a “skin panel Fusion.”

2014 Jeep Grand Cherokee 4WDFrame – Lower Front RailThe new 2014 Jeep Grand Cherokeemay look pretty hot, but Chrysler saysto save the heat when working on thenew SUV because it uses an “extensiveamount” of high-strength steels inthis vehicle.

However, many of you will be de-lighted to hear that Chrysler has pro-duced sectioning documentation forthe new Grand Cherokee. The lowerfront frame rail procedure calls forsectioning the rail 90 millimeters infront of the cradle bolt center-line

TechTipsWhat Are Your Top Five Repairs?

By Karl Kirschenman


and to use butt-joint welding with a.75-inch backer. And don’t forget toapply corrosion protection per OEMspecifications. Just an FYI, Chrysleruses structural adhesives in the 2014frame rails as well. If the sectionedcomponent fails, the results mightnot be so “Grand.”

2014 Toyota CorollaQuarter Panel SectionsWhile you’re not supposed to useheat on a Grand Cherokee’s bodypanels or frame components, Toyotasays you need heat for removingand replacing the quarter panel ona Corolla. The procedure cautionsagainst too much heat, which maydeform the panel. R&R on the quar-ter panel is not a walk in the park.It involves adhesive, body sealerand the three weld brothers: plug,spot and butt. The devil is in thedetails for a proper repair.

2014 Chevrolet Silverado 1500 4WDFront Bumper Lower Shutter ActuatorReplacementRemember when bumpers were justpieces of metal? Bolt off, bolt on. Ofcourse, bumper assemblies are a bitmore complex now. For example, thebumper/grille assembly on a 2014Chevy Silverado includes a shuttercomponent designed to close whenthe need for engine cooling is reduced.Why? Well, when you’re driving yourChevy to the levee, the shutters mayclose down to increase the truck’saerodynamic qualities and perform-ance. It’s all aimed at boosting MPG.The removal procedure describes care-fully disassembling links, tabs, electricalconnectors, actuators and louvers. Theemphasis is on “carefully.”

Evolution » Yikes! It’s getting morecomplex out there every day. So, have

you encountered any of these vehiclesyet? Always be sure to check the latestOEM information so you can guaranteethat your shop delivers safe, efficientand properly repaired vehicles. Theway technology is evolving, it maynot be long before there is a wholenew slate of candidates for the mostrequested collision repair procedures.

NOTE: This repair/service infor-mation is excerpted from informationpublished by the vehicle manufacturer,and intended for the purpose of pro-moting OE collision repair informationto trained, professional technicians withthe knowledge, tools and equipmentto do the job properly and safely. Beforeattempting any repairs described, referto the complete article in ALLDATACollision S3500. It’s recommended thatthese procedures not be performed by“do-it-yourselfers.” BSB

Karl Kirschenman is ALLDATA’s collisionproduct manager, focused on providingsimple, innovative and best-in-class prod-ucts that contribute to efficient, safe andquality automotive repairs for the collisionrepair industry. Prior to joining ALLDATA, he was the director of tech-nology for I-CAR, leading the corporatetechnology team and supporting operationsin North America, Canada and Australia.He holds a bachelor of science degree incommunication, and has over 10 years ofexperience in the collision industry.

© 2014 ALLDATA LLC. All rights reserved. All technical information, imagesand specifications are from ALLDATACollision S3500. ALLDATA and ALL-DATA Collision are registered trademarksof ALLDATA LLC. Hyundai and Sonataare registered trademarks of HyundaiMotor Company. Ford and Fusion areregistered trademarks of Ford Motor Com-pany. Chrysler, Jeep and Grand Cherokeeare registered trademarks of ChryslerGroup LLC. Chevrolet and Silverado areregistered trademarks of General MotorsCompany. Toyota and Corolla are registeredtrademarks of Toyota Motor Corporationand/or Toyota Motor Sales, USA. Allother marks are the property of their respective holders.

»|Tech Tips |«


If Old Man Winter had an axe togrind, this winter was certainlythe year he decided to do it…andboy did he make that sucker sharp!

With more than 60 inches of the whitestuff and 13 separate storms, we hadthe third highest snowfall ever in thePhiladelphia area. Without question,this winter was a collaboration of perfect “storms.”

In the modern collision repair era,it has never taken longer to processestimates, customers and claims. Asa regional MSO in the Philadelphiaarea, the average amount of time ittakes us to document damage andprocess an estimate for our insurancepartners is one to two hours per ve-hicle. Combine that with the amountof claims, which were up approxi-mately 20 percent over last year dueto the weather, and you’re talkingmajor delays. And I haven’t even

touched on other factors that delayedthe process.

In fear of sounding like someonecrying hunger with two loaves of breadunder my arms, let me state that mygoal in writing this article is to sharewhat we went through last winter tohopefully impart some lessons thatthe average shop can learn from and

use to improve their own operations.After all, it’s extremely important thatwe, as our industry moves forward,meet any and all challenges, expectedor unexpected, in an efficient and effective manner.

Extended Hours » Before I decidedto write about this challenging winter,I interviewed all of our stores andmost of our administrative and officepersonnel, asking them how they gotthrough it all. The common themeamong them was: they came in early,stayed late, and performed temporaryrepairs to buy more time and make avehicle drivable to A) avoid an un-necessary delay to the customer andB) allow us to get caught up. Extendedhours and double shifts were the stan-dard over this winter and not thenorm. Our version of extended hourswas 6 a.m. to 7 or 8 p.m.

BUSINESS

The Perfect StormWe had to throw out all we

learned from Six Sigmawhen systems, computers

and power disappearedafter one of the most brutal

winters on record. Thelesson? Our people are our

greatest asset.

By Lou Berman


We subcontracted help to assist uswith much of our administrative duties.We also had out-of-pocket expensesfor rentals due to delays on repairs,even though they weren’t our fault.Here are some other expenses we hadto deal with:

BUSINESS » The Perfect Storm


5 Lessons Learned from the Storm1. Tie up your loose ends and evaluate all of your policies and procedures.

You can’t fix these problems when your shop is in crisis and you have no techs,

adverse weather, no parts, etc. Make your improvements and become as effi-

cient and lean as you can. This will serve you better than you could hope for in

a time of extreme challenge.

2. Being proactive is the key to a calm, understanding customer. Make that

preemptive call or text, advising them of winter-related delays/challenges.

3. Schedule, schedule, schedule! Live and die by the schedule. You want to

help a customer in need but you only have so much production capacity. The

road to hell is paved with good intentions…and how true that is. In our opinion,

customers give you only about a 24- to 48-hour grace period regarding

weather-related delays. A big component of this is parts. Our CEO, Val

Fichera, is known for saying, “You can’t make the dinner without the

groceries!” If we could do it all over again, we would have turned off some

accounts in the few locations that suffered power outages. Even when

customers come in and see we’re without power, as they probably are too,

they sometimes still expect that we’re going to repair their vehicles in record

time. They just don’t understand the dynamic of production and orchestrating

collision repair and all of the components that need to be in sync to make the

miracle of what we do happen on a consistent and timely basis…and please

both the vehicle owner and insurance company.

4. Warn employees as much as possible about the dangers of the weather.Snow shoveling and even walking can be hazardous. While we all want to step

up to the plate and hit a home run, we need to be mindful of our employees

first, keeping them healthy and able to produce effectively. Collision Care is a

company that has always relied on and valued our employees. We’re proud

that we have one of the best employee retention rates in our region. This

storm reminded us that the engine that drives this company is not our process

or procedures or Six Sigma but our people. We couldn’t have been prouder of

our employees for stepping up when the systems failed, computers went down

and the power disappeared. This company still ran well!

5. Be flexible. We certainly were not more efficient during this storm. We

were so accustomed to the efficiency we developed through our Six Sigma

training and implemented at all our stores that we had to revert back to the

“old way” of doing things, like ordering parts from cell phones. We had to

adjust on the fly and adopt the Marine-type mentality of “Improvise, Adapt and

Overcome.” From that standpoint, our company got stronger because we had

to operate without our big guns and no cover. At the same time, it was a meas-

ure of our company’s X factor of talent. Who can think on the fly, outside the

box and outside the system? It was kind of like a flight simulator that’s

doomed to fail. Nothing was working. Computers were down, parts were hard

to come by, raw materials were at a standstill, etc. If you can produce in that

kind of environment and still keep your vendors, it’s a testament to your com-

pany. (Side note: in the last quarter of the year, our CSI remained at a constant

high, helping us achieve an AutocheX Premier Achiever Award from Mitchell

International.)

A. Overtime for techs. Based onmissed days, weather, etc.

B. Car rental. Due to weather, partsdelays, injuries, manpower, etc.

C. Subcontractors. We hired addi-tional administrative temporary staffand second shift evening techs to make

up production from “over in-flow”(when you take in more than you caneffectively produce in our cycle timegoal of eight days keys to keys).

D. Snow plowing. We had to dothis 15 separate times. Includes lotmaintenance, salt, etc.

E. Additional parking. We rentedlots adjacent to our stores for carstorage, etc.

F. Damage to cars in lots. Therewere so many cars in tight spaces, wesaw a large increase in lot damages,unforeseen circumstances, etc.

G. Weather-related injuries, work-man’s compensation. Three employeesslipped and fell, other employees wereinjured shoveling snow at home.

Most of our production employeessacrificed their weekends, and evenspouses pitched in with callbacks,making files and delivering customers’vehicles. Customer invoices and pa-perwork were taken home at night,

and the load was spread among familyand friends. We hired more people inthe last three months than we have inthe last three years to help offset thevolume. We had to lease land in manyof our markets to accommodate vehi-cles that were either totaled or waitingto be worked on. Parking spaces at allof our stores were allocated for cus-tomers so we could meet their needsin a convenient, efficient manner.

Walk-Ins » The additional “X factor”in this equation, observed by our CEO,Val Fichera, was all of the additionalwalk-in business that occurred, mostlydue to the weather. From an adminis-trative perspective, that’s a larger chal-lenge as you don’t have an assignmentwaiting for you in your inbox. Youhave to make phone calls, assist thecustomer in determining whether topursue a first-party or third-partyclaim, etc. It was very time-consuming,

and time was what we needed duringthis period. But first impressions arelasting ones, and we needed to maintainthat presence with our customers. Ourbusiness, despite the prolific volumeof work, still needed to operate at thecustomer’s leisure and convenience.

Parts » I interviewed three partsmanagers from three major manu-facturers to get a better grip on thechallenges they faced in obtainingand delivering parts. They all agreedthis past winter was the most chal-lenging one in modern-day crashparts history – not even consideringsome new wrinkles in parts procure-ment. As John Hatchell, parts managerat Cherry Hill Nissan, put it, “Thiswinter was just brutal.”

One of the issues was snow delayswith factory parts transportation fromthe manufacturers (delivered by uniondrivers). Often, at the slightest hint of



snow, transportation was either delayedand/or cancelled.

Like us, the parts managers alsohad to deal with employees eithershowing up late or not at all due tothe weather. According to Jeff Potteiger,parts manager for Main Line BMWEurocars, FedEx and UPS aircraft werediverted and could not land in Philadel-phia on several occasions. Also, partsfrom Germany were severely delayedeither by bad weather grounding air-craft or storms in the Atlantic Oceancausing significant disruption out ofall German ports.

“Wheels this past winter becamethe hot commodity,” said Ray Gluch,parts manager at Bryner Chevrolet.“There were so many potholes fromthe ice expanding on the roadwaysthat we couldn’t order and get wheelsfast enough. I never saw anything likeit before.” Gluch listed some challengeshe and other parts managers faced:

1. Snow delays. These were weekly.It’s so much harder to deal with manyseparate storms than just a few. Eachone took up huge blocks of time. Threestorms averaging two inches of accu-mulation is way worse than one stormwith six inches.

2. Warehouse power outages.3. Tractor trailers not delivering

orders due to bad driving conditions.4. PDC running out of crash parts

due to the spike in business.5. Shortage of wheels due to poor

road conditions. 6. Parts on major backorder as

inventory got consumed.When you factor in the economy

and how most dealerships are keepinga lean inventory to keep expensesdown, you can see how significant aone- or two-day delay became whentrying to obtain parts and meet cycletimes. Also consider manufacturers’projections of PPCP (post-production

crash parts), or parts budgeted for andmanufactured strictly for crash re-placement. Simply put, all businessesforecast sales according to need. Butwhen the demand exceeds the supplythat’s been calculated at a certain ratefor years, you can imagine the delaysit causes. Manufacturers live and dieby projections.

Car Rental » The car rental industryis critical in giving MSOs like us theflexibility to repair customers’ vehiclesand address the serious backlog thatcan occur when extreme, unforeseenweather hits.

“You cannot fleet forecast, hire orplan for what we all experienced thiswinter,” said Christine Gallagher, RVPfor Enterprise’s Eastern PA division.“What we had was a tough one, andthis was a biggie.”

Like everyone else, Enterprise hadto make significant changes to meet



their customers’ needs. According toGallagher, cars were brought in fromall over the country and websitesshut down, preventing retail cus-tomers from renting cars. Employeeswere hired and moved to high trafficareas to meet demand. Locationsopened earlier, extended hours wereoffered and one-way rental trafficout of the area was shut down toavoid reducing the fleet. Car sales

were practically shut down from De-cember until late March so they couldcommit to service first before anyfleet planning. They did the best theycould to stay connected to body shopsand insurance companies to stay ontop of their renters’ files and controlthe rental life. Despite these efforts,there were still situations where ex-pectations fell short, so compensationhad to be made.

Who’s Your Customer? » As a SixSigma-trained lean facility, any timeyou get this type of extreme influx ofwork, one of the biggest challenges iscustomer service. Along with that isthe elevated level of stress among em-ployees working their fingers to thebone to appease your insurance part-ners and customers.

Do you know who your customers



Continued on pg. 98


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For more information about our complete product line,

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UniCure ZAPPER 3006

NACE Booth #24010

By Jason Stahl

You know what happens when you don’t keepup with the dishes, right? You chow down withyour family and lay four dirty dishes in thesink, reasoning, “It’s only a few, I’ll get to it

later.” And then, of course, you don’t get to it later,one day turns into one week, and the pile of disheslooks like the Leaning Tower of Pisa. Whereas oneperson could have done the job of cleaning four dishes,now the whole family has to be enlisted in order tosnuff out the mess in a reasonable amount of time.

It’s the same principle with your spraybooth. If youdon’t have a set, regular cleaning schedule, the grimewill pile up and make the job even more undesirableand difficult when it finally comes time to do the task.Or you may just decide to forgo it even longer becauseyou can’t stomach the amount of work it will take toget it back to new.

Standard Procedure » Angelo DiTullio knows howbad it can get. That’s why the assistant vice presidentand regional operations manager of Rocco’s CollisionCenters has made cleaning the booths (and the rest ofthe shops) a standard operating procedure that occurson a regular basis.

“Like anything else, you have to make it part of

Clean That Booth!

Cleaning and maintaining yourspraybooth is essential to avoiding costlyredos and keeping a tidy shop.


EQUIPMENT

It’s a wet job, but powerwashing yourspraybooths regularly can pay big dividends.

your culture because, if you waitfor the right moment, the right mo-ment will never come,” says DiTullio.“You will always be busy and arealways going to have cars that needto be painted. You have to basicallymake it a law and say, ‘This is howwe operate.’”

So what’s the law at Rocco’s? Thebooths get cleaned the first Mondayof every month. That means theyget powerwashed, have their filterschanged and get remasked for over-spray. On a weekly basis, painterschange the floor filters, clean andsweep out the booths, clean thepaint rooms and change the paperon the mixing tables. And then thereis follow-up.

“Every store manager has to senda text to [Mark Cipparone, Rocco’sCEO] and myself letting us knowthe booths have been cleaned so

we’re all on the same page,” DiTulliosays. “Sometimes it gets crazy busyand it’s an easy excuse to say youdidn’t get to it. But that’s why weset it up this way so everybodykeeps on that mission and alwaystakes care of it.”

Cleaning the booths isn’t as-signed to specific people; at Roc-co’s, cleaning is looked at as ateam effort. If there’s only onepainter at a shop, he will be re-sponsible for his booth and paintroom. In the shops where there

EQUIPMENT » Clean That Booth


Some shops hire an outside company to dothe heavy cleaning and maintenance of thebooth.

are multiple painters, they willshare the duty.

“It’s part of their job,” says DiTullio. “It’s set in stone for thefirst Monday of every month, soeveryone knows what’s going tohappen that day.”

Even though it’s part of the cul-

ture now, DiTullio still sets up theregular booth cleaning as an auto-matic calendar event in the com-pany’s email system as a reminderto managers.

“This is because we do get busy,and sometimes you might forget,” hesays. “If Friday was a slow day, they

might have done it then, but theyknow that as long as it gets done bythat first Monday, they’re good.”

Although DiTullio has no physicaldocumentation that keeping a spark-ly clean booth has resulted in lessredos and comebacks, logic says lessdirt and grime leads to a more dirt-free paint job.

“We absolutely buff less, run intoless problems and have less redosby keeping on top of that mainte-nance,” he says.

But redos aside, another reasonit’s critical to keep the booths cleanat Rocco’s is because every customergets a tour of the shop.

“Having a booth that you’re paint-ing a lot of work in, you have over-spray that gets on the walls andfilters and looks crummy and be-comes embarrassing to the pointwhere you don’t want to bring some-one in the booth to show it to them,”DiTullio says.

So how does the process go? Theytake out all the filters and don’tpowerwash any higher than thewalls, so the ceiling filters can stay.They’ll pull the exhaust filters outof the floor and pull the grates outand set them somewhere to get pow-erwashed as well. The cleaners wearboots and gloves and try not to getwet. Each booth takes two to two-and-a-half hours to clean.

But it’s not just the booths thatget cleaned. Every Friday, the restof the shops get tidied up, too.Around 3:30 or 4 p.m., crews throwaway all the parts they don’t need,sweep and powerwash the entireshop from the walls down.

“As busy as we are, parts andboxes can build up very quickly,and if you don’t take that time toclean the store every week, it shows,”says DiTullio.

In and Out » The painters at ValleyMotor Center Autobody in VanNuys, Calif., are expected to tidyup their booths every week, ac-cording to General Manager Mike

EQUIPMENT » Clean That Booth!


Towney. This involves sweeping,washing down the walls, wipingdown hoses and any shelves thatmight collect dust, and cleaningany overspray off the glass. Floorfilters are also changed out.

Heavy-duty maintenance, how-ever, is left to an outside companythat performs it on a monthly basis.

“They do full-service as far asbuilding booths, relocating booths,permitting booths as well as servicingand maintaining them,” says Towney.“They go through and deep cleaneverything, including the vents andfans, and replace all the filters.”

The idea, Towney says, is to pre-vent a problem before it happens.With four booths to maintain, it’snot cheap, he admits, but he feelsit’s worth it.

“If we tried to do it ourselves,there are things we would miss,” he says.

The overall goal of the weeklycleanings and monthly maintenanceis to achieve consistent airflowaround the car, Towney says.

“If [the booth] is struggling towork and you have more oversprayfloating in the air for a longer periodof time, you have more opportunityfor lint to attach itself to debris andland on the car. Cars don’t necessarilystraddle the vents or grates at thebottom equally. You need the bestairflow from top to bottom to pushout all overspray immediately. So ifyour filters are pretty clogged, itslows that down and you have thepotential for more impurities andthus you will have to buff more onthe back end.”

While Towney admits he doesn’thave a standard procedure to verifythe cleaning has been done, he trustsit has because of what’s at stake.

“I will periodically ask the paintersif it has been done, but I’m not thatrigid on that because it’s in theirbest interest to keep the booths cleanbecause they will spend less timecorrecting problems, and they knowthat.” BSB

EQUIPMENT » Clean That Booth!



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BUSINESS


RINGING UPthe Profits

market for sprayed-on bedliners. “If you look at fleet sales alone, they

have doubled from three years ago,”Jamroz says. “You’ve got more truckson the road, but a lot of the mom-and-pop shops that did lift kits, bumpers,grills and everything else went out ofbusiness when sales were down at thedealerships, and now you’ve got thebigger shops left doing spray-on bed-liners and [other add-ons].”

That means there are fewer placesto get a sprayed-on bedliner today,Jamroz says.

And now, more trucks leaving the

Add-on businesses canbe just the thing to give

a lift to a sagging bottom line.

By Kristen Hampshire

Add-on businesses give bodyshops opportunities to ringin sales rather than turningrequests for sprayed-on bed-

liners, glass work, detailing and alu-minum repairs to other outlets. Butare you ready to expand your corebusiness? And what’s the best serviceto add to your menu?

Truck Mania » With increased truckproduction now that the economy isloosening up, John Jamroz of UltimateLinings in Houston, Texas, says thelast 18 months have provided a solid

factory have bedliners, opening uprepair work for body shops that areequipped to manage these jobs.Jamroz says 40 percent of DodgeRams leaving the factory have bed-liners. Increased exposure to bed-liners also causes drivers to ask forthe feature. Body shops that dosprayed-on bedliners can capture

that business from dealerships if apartnership exists.

“You’ve got increased truck pro-duction, pent-up demand and in-creased exposure at the dealership-level – and lower operating costs,”Jamroz says of the perfect ingredientsfor a successful add-on business.

There are two sides to the bedliner

business: installation and warrantywork. “We offer two methods forbody shops to maintain that prof-itability in-house – and often, it’s a[bedliner] repair,” Jamroz says.

With more vehicles, owners arespending today on add-ons, in general,making additional profit centers aninvestment to consider for body shops.

“We’re finally back to a pointwhere people are investing in theirvehicles,” says Dana Mitchell of Scor-pion Coatings in Cloverdale, Ind.

Breaking In » Is a bedliner businessright for your shop? And, beyondprotective coatings, what about otheradd-ons such as glass work or ad-vancing current repair capabilitiesby investing in tools to do aluminumcollision repair?

Some add-ons are admittedly out-side of a body shop’s core business.A question to ask is: “Is it worth it –

BUSINESS » Profit Centers

56 July 2014 | BodyShop BusinessCircle 56 for Reader Service Circle 56 for Reader Service

Increased exposureto sprayed-onbedliners iscausing morevehicle owners toask for them.

is there enough business there?” saysBob Olszak, USC product managerat Quest Automotive Products in Mas-sillon, Ohio. Do you have the spaceto devote to a sprayed-on bedlineroperation? (A devoted, screened-inarea is necessary to avoid overspray.)Do you have the resources to traintechnicians and market the service?And how will the supplier/dealerassist with these tasks? What’s themarket in your area? (Is the guy nextdoor doing the same exact thing?)And is there opportunity for feederbusiness? Will dealerships and insur-ance companies send vehicles to yourdoor if you offer the service?

Sprayed-on bedliners is one busi-ness option – but so is detailing,headlight repair and other sideservices that take up less space ina body shop that wants to test additional services before investingin new equipment.

Ease of use/operation is a keyconsideration as well. Olszak explainshow Quest’s epoxy system offersmore adhesion, corrosion protectionand chemical resistance than otherurethane options.

“Basically, these products are easierto prepare and apply, and whileslightly slower to cure, there isn’t ahuge [time] difference and it’s a sim-ple, easy system to invest in if ashop wants to do bedliners,” he says.

Mitchell says body shops thatwant to test the waters can enterthe bedliner business with low-pressure systems/kits and chooseto advance their systems as theydo more volume.

“It makes sense to crawl beforeyou walk, and walk before you run,”he says.

The body shop start-up investmentcan be as low as $850 if you countan applicator gun and materials –less, in some cases, for kits.

With materials costs running about$150 for high-end products, and anaverage national bedliner installationprice of about $550, the profit potential is certainly there, Mitchellpoints out.

Mitchell says the material costfor low-pressure systems is 20 to30 percent higher (for Scorpion Coat-ings) than high-pressure materials.“But, there is no equipment invest-ment,” he says. “Your spray gunswill be $200 in the worst case.” Ashop that does two or three trucksper month will be well served bythis easy entry approach.

But once a shop starts sprayingfive to 10 vehicles a week, the volumejustifies an investment in high-pres-sure equipment, Mitchell says.

“You have to ensure that you havethat business long-term – if it’s aflash in the pan for a dealershipyou’re spraying for and you losethat business in six months, you’restuck with a $30,000 equipment in-vestment,” he relates.

For long-term volume, and an opportunity to continue growing thesprayed-on bedliner business, a body



shop can do the math and makehigher profits by getting into a high-pressure system.

Some good news: The cost to get asprayed-on bedliner business goingis much less today, Jamroz says. High-pressure equipment cost is less nowthrough Ultimate Linings – about$16,500 compared to up to $28,000 –now that more machines are on themarket for body shops to choosefrom, Jamroz says.

Not sure whether to start withlow- or high-pressure application?Jamroz crunches some numbers. Fora truck bed requiring six cartridgesof product (and that’s a lot, he says)at $25/cartridge, materials for a sin-gle bed cost about $150. Switchingover to a high-pressure system, ma-terials cost is approximately cut inhalf, but the application equipmentcosts more. “But if you’re doing 20trucks per month and saving $75

per truck on materials costs, that’s$1,500 per month you’re saving, soin 11 months, you’ve paid for theequipment,” Jamroz says.

Volume justifies the investment –and cross-marketing can pump thatvolume up. Mitchell says shops canoperate sustainable add-on businessesby partnering with dealerships andother suppliers that do not have abody shop on site. “They will get re-quests for bedliners and drive thattraffic to you,” he says. “Work with

the parts and sales departments, be-cause they will push that [add-on] foryou. If a salesperson feels like he canclose a deal on a truck by offering abedliner, he is going to promote that.”

Another strategy is to coordinatewith local accessories retailers. “Havethem drive their bedliner businessto you, and create a nice bundle todrive the traffic back and forth,”Mitchell suggests, relating that bodyshops are generally not involved inbolt-on accessories and can recipro-



to Ask Before Adding On a New Service

1. Is there enough business available to justify the investment?

2. Do you have the necessary space?

3. Do you have the resources to train technicians and market the service?

4. How will the supplier/dealer assist with training and marketing?

5. Is there an opportunity for feeder business? (Dealers and insurers sending

vehicles to you).

5 QUESTIONS

cate referral business by sending re-quests for these products to retailpartners in their region.

Mitchell adds that shops shouldtake advantage of social media andpost specifically labeled photos (tag-ging the truck description, liner andmaterial) of bedliner projects on Face-book and other outlets, which willget them recognized as local installers.

Enhancing the Core Business »Add-on businesses such as under-coating and restoration kits can besimple and take up little space. “Youcan use a single bay, the turns arequick and the revenues are high,”Mitchell says. He says many shopsgot away from this work in the lastfive years. “There wasn’t demandfor it, and they focused on panel re-pair and paint.”

Undercoating and restoration costsless from a time and materials per-spective, and can generate as muchrevenue and gross profit as full-onpanel repair service, Mitchell says.

“Headlight restoration, windowfilm and tinting are other optionswe offer that are a huge push forbody shops right now,” Mitchellsays, reiterating increased driverspending on vehicle add-ons. “Folksare spending more – we see thattrending in the market here.”

Meanwhile, shops must also seri-ously consider their core businessand how it will evolve with the increase in aluminum repair thatwill hit the market after fall whenthe No. 1-selling vehicle in the coun-try, the Ford F-150, debuts.

“It’s a paradigm shift in auto bodyrepair,” says Erik Spitznagel, CEO ofDent Fix Equipment, Gardena, Calif.

Dent Fix offers more than 50 dif-ferent pieces of body shop-specificequipment for technicians, includingthose for aluminum repair. By 2025,18 percent of vehicles on the roadwill be aluminum-paneled. “It doesn’tsound like a lot, but if Ford itself putsout 736,000 pickups per year, that’s alot of repair,” Spitznagel points out.

A changeover in equipment could

cost a shop $30,000 to $50,000, de-pending on the preparation required.But Spitznagel says this expandingfield of repair will differentiate bodyshops from competitors – and howlong can a shop ignore a significantstream of business? He compares thefuture influx of aluminum repair to atidal wave. “It’s an aluminum wallcoming toward us,” he says. Someshops will get the equipment to makealuminum repairs; those that dig theirheads in the sand could get sweptaway by the wave of aluminum repair.

“For those who are forward-think-ing and preparing their shop, it willallow them to direct the business foraluminum repair to their shops,”Spitznagel says, adding that as alu-minum becomes more standardized,there will be demands that body shopsrepair and not just replace the panels.

Spitznagel acknowledges the rangeof add-on businesses that shops canchoose from to increase revenues,from detailing to car rentals. ButDent Fix focuses on collision repair.

“That is the body shop’s business,so they need to focus on that andmake sure they’re the best that theycan be in the field,” he says.

Where Do You Want to Be? »Think about this: Where do youwant your body shop to be in fiveyears – and in 10 years? Set a goal.And be willing to take calculatedrisks in the name of driving moreprofit to the business.

“Analyze how much you can,and are willing, to invest to see ifyour facility can handle growth,then start looking for areas to ex-plore,” Spitznagel says, relating tohis own family’s business, foundedin 1978 by his father. Dent Fix justmoved into its third facility – thecompany started out with one pieceof equipment, and now it offers 50-plus. Spitznagel offers this advice:“You have to allow yourself the opportunity to grow.” BSB

Kristen Hampshire is a freelance writerbased in Cleveland, Ohio.



By Jason Stahl and Gina Kuzmick

Look too closely and you may not recognizeNACE this year. New city (Detroit). Newtime (July 30-Aug. 2). New organizer (StoneFort Group). You might say the show has

reinvented itself. And how appropriate as the inventorof the automobile, Henry Ford, was born there.

And what about all the other collision eventsgoing on the same week? The Collision IndustryConference. The I-CAR Annual Conference. The Col-lision Repair Education Foundation Golf Fundraiser.The Society of Collision Repair Specialists OpenBoard Meeting. The National Auto Body CouncilOpen Board Meeting. Just to name a few. This meansit’s going to be the biggest week in the collisionrepair industry in 2014…which means you absolutelyhave to be there!

Education » The pounding drumbeat in the industry lately has been “training-training-training.”And more training! With new technologies beingintroduced into vehicles every year, shops can nolonger rely on the knowledge and experience theybuilt up for the last 20 years.

There’s no place better to get up-to-speed ontoday’s vehicles than NACE. Starting Wednesday,July 30, NACE will be offering classes on bothtechnical and management topics. Some of the tech-nical topics include:

� Chief Automotive Technologies, Aluminum 2014� Automotive Wheel Alignment Theory and

Practical Application: Relations with ElectronicStability Control & Dynamic Driver AssistPrograms

� Rivet Bonding and Weld Bonding BecomingMainstream – Are You Ready?

� Steering and Suspension Damage Analysis� Plastic welding and bumper repair

Some of the management topics include:� Situational Leadership: Understanding People� QuickBooks for the Collision Repair Industry,

The Right Way� Creating a Culture Where New Hires Succeed� Dynamic Marketing Through Social MediaThere will also be aluminum-focused training and

presentations to collision instructors and industry

SHOW PREVIEW

The 2014 NACE/CARS Expo & Conference is taking place July 30-Aug. 2,and what better place to have it than Detroit?


professionals thanks to a $60,000 grant from theAlcoa Foundation. Other manufacturers will alsooffer presentations at NACE on aluminum repair,including but not limited to Ford Motor Co., Audi,Pro Spot, Car-O-Liner, Chief and 3M. Ford will havea class that will provide 2015 F-150 aluminum repairinformation and details on its National Body ShopProgram. There will be at least nine classes coveringaluminum, including sessions on aluminum weldingand repair and a class explaining the differences between aluminum and steel.

Collision Repair Executive Forum » The CollisionRepair Executive Forum (CRES), formerly knownas the MSO Symposium, has been a hit ever since itdebuted in 2011. Whereas in previous years it wasonly open to multi-shop operators, the all-new CRESwill cater to a broader group of collision repairers.

This year’s event includes key changes in content,including a focus on management, operations andparticipation from insurance company executivespresenting leading information on industry trends.CRES is designed for collision repair multi-shopoperators, as well as operators looking for high-growth strategies, mergers and acquisitions. Thesymposium is scheduled for Friday, Aug. 1 from 8a.m. to 4:30 p.m.

Canadian Collision Industry Forum » The Cana-dian Collision Industry Forum (CCIF) will host aspecial event on Thursday, July 31 that will featureindustry speakers, panel discussions and a cock-tail reception.

Keynote speaker Vincent Romans of The RomansGroup LLC will provide an overview of the state ofboth the Canadian and U.S. collision and property/

SHOW PREVIEW » NACE 2014


Henry Ford Museum

A Detroit staple established by Henry Ford himself, the

museum highlights the finest and most important pieces

of American history and innovation. From early airplane

models to the first Macintosh

computer to the 15 millionth

Model T, milestone inventions

abound. Be sure to check out the

new exhibit titled, “With Liberty

& Justice for All,” which exam-

ines some of the most profound

moments in American history. It

includes items like the chair in

which President Lincoln was

assassinated and the bus in which Rosa Parks stood up

for civil rights.

20900 Oakwood Blvd., Dearborn(313) 982-6001

www.thehenryford.org

Ford Rouge Factory Tour

This five-part, self-guided experience incorpo-

rates informative videos and walking tours to

educate visitors on

the history and

process of Ford man-

ufacturing. Tour the

assembly plant for an

up-close view of the

new F-150 manufac-

turing process, then

hop in one to see

what it’s like for

yourself!

20900 Oakwood Blvd., Dearborn(313) 982-6001

www.thehenryford.org

Motown Historical

Museum

This attraction offers a

glimpse into the golden

age of soul through his-

torical music exhibits and artifacts. Step foot into Studio A,

where legends such as The Supremes and the Temptations

recorded hit songs, then learn all about such artists as the

Jackson 5, Stevie Wonder and the Four Tops.

2648 W. Grand Blvd., Detroit(313) 875-2264

www.motownmuseum.org

Concours D’Elegance

Now in its 35th year, the Concours d’Elegance continues

its longstanding tradition of showcasing majestic vintage

automobiles and bikes. View pre- and post-war classes

of classic vehicles, participate in auctions and attend

seminars on vehicle restoration.

July 25-27

The Inn at St. John’s44045 Five Mile Road, Plymouth

(248) 643-8645

www.concoursusa.org

Places to Go

casualty industries. He will discuss the accelerationof mergers and acquisitions in the collision repairindustry, and address what consolidation means forthe industry at large and how it impacts each collisionshop’s business. The CCIF conference will take placeat the COBO Center from 1-4 p.m. and will be followedby a cocktail reception.

OEM Technology & Innovation Expo » A newaddition is the inaugural OEM Technology & Inno-vation Expo scheduled for Friday, Aug. 1. It will include panel discussions with OEM experts as well

as product and application demonstrations. In addi-tion, connected vehicles are expected to be on-site toprovide attendees with a hands-on experience.

“The OEM Technology & Innovation Expo atNACE/CARS will provide attendees with access toadvanced technologies currently being deployed byautomakers,” said Matthew Godlewski, vice presidentof the Alliance of Automobile Manufacturers. “Ahost of technologies will be on display, and OEMexperts in the field will be on hand, including apanel discussion regarding telematics and future innovation in diagnostics and repair.” BSB

SHOW PREVIEW » NACE 2014


Michael Symon’s Roast

11128 Washington Blvd.

www.roastdetroit.com

Renowned meat

aficionado Michael

Symon’s Motown restau-

rant is a carnivore’s para-

dise. From wild boar to

duck to the “beast of the

day,” you’ll have a wide assortment of mouthwatering

meats to choose from. If you’re not completely stuffed

after dining, stick around for a hefty dessert of porter

beer ice cream with chocolate covered pretzels.

American Coney Island/Lafayette Coney Island

114 and 118 W. Lafayette Blvd.

www.americanconeyisland.com

Detroit is famous for its coneys, and these two rival

shops, located right next to each other, make some

mean dogs. Get a coney from both, then make your

assessment as to whose is better.

Motor City Brewing

Works

470 W. Canfield St.

www.motorcitybeer.com

Enjoy flavorful brick oven

pizza and a hearty selection

of craft beer atop this micro-

brewery’s rooftop patio or in

its cozy taproom. With such

names as Old Gear Oil and

Ghettoblaster, the beverage

menu is a piece of Detroit

history in itself.

Astoria Pastry Shop

541 Monroe St.

www.astoriapastryshop.com

Satiate that sweet tooth with nearly any dessert you

can dream up. From posh European treats like éclairs

and crème brulee to traditional favorites such as

brownies and danishes, this shop is guaranteed to

have something for everyone. Bonus: It’s open late to

satisfy your late-night cravings.

Dining

The combined av-erage age of alllight vehicles onthe road in the

U.S. remained steady at11.4 years, based on asnapshot of vehicles inoperation taken Jan. 1 ofthis year, according toIHS Automotive, whichincorporated Polk into itsbusiness last year.

Total light vehicles inoperation (VIO) in theU.S. also reached a record

level of more than252,700,000 – an increaseof more than 3.7 million(1.5 percent) since lastyear, said the IHS Auto-motive analysis from July2013. In addition, new ve-hicle registrations out-paced scrappage by morethan 24 percent for thefirst time in a decade, ac-cording to the analysis.

The average age is inline with the trend shiftfirst seen in 2013, in

which the combined fleetof cars and light truckson the road is older thanever. New analysis, how-ever, indicates the aver-age age of light truckshas increased in the pastyear to the same age aspassenger cars, both at11.4 years. This is the firsttime this has happenedsince 1995, when the datawas first reported.

IHS forecasts that aver-age age of vehicles will

remain at 11.4 yearsthrough 2015, then rise to11.5 years by 2017 and11.7 years by 2019. Thisrate of growth is slowingcompared to the last fiveyears due to the increasein new vehicle sales.

The number of vehiclesscrapped in 2013 was sig-nificantly fewer than inprevious years, with justover 11.5 million vehiclesscrapped during the 12-month timeframe ana-lyzed by IHS Automotive.In comparison, a recordhigh of more than 14 mil-lion vehicles werescrapped in 2012 – thiswhile VIO is up 1.5 per-cent, a rate the auto in-dustry hasn’t seen in theU.S. since 2004-2005.



NationalAverage Age of Vehicles on the RoadRemains Steady at 11.4 Years

A combined forward col-lision and lane departurewarning system availableon the Honda Accord isreducing insuranceclaims, a new HighwayLoss Data Institute(HLDI) analysis shows.The results are even bet-ter than expected basedon previous studies ofsuch technology on luxu-ry vehicles, the HLDIstated.

In the first real-worldstudy of a crash avoid-ance system on a high-volume, non-luxuryvehicle, Honda’s systemwas found to reduce in-surance claims for dam-age to other vehicles by14 percent. It cut claimsfor injuries to occupantsof the equipped vehiclesby 27 percent and claims

for injuries to other roadusers by 40 percent.

“This was our first op-portunity to study ad-vanced crash avoidancetechnology on a high-vol-ume vehicle, and the re-sults are impressive,” saidHLDI Vice President MattMoore. “This is a warningsystem only, but the claimfrequency reductions aresimilar to what we sawearlier for systems withautomatic braking.”

Previous analyses offorward collision warningwithout autobrakeshowed more modestclaim reductions. Lane de-parture warning was as-sociated with increases inclaims in earlier studies,though none that werestatistically significant, ac-cording to the HLDI.



Study Shows Honda Collision WarningSystem Reduces Insurance Claims

Liberty Mutual CEO Says Driverless CarsCould Put Dent in Auto Insurance MarketA report from the Boston Globe on Google’s plan tomanufacture 100 cars without steering wheels andbrakes and start testing them out quoted LibertyMutual CEO David Long as saying, “[Driverlesscars] are coming, and it will have a significant im-pact. Thank God in a shrinking market, we don’tjust insure cars, we insure property.”

When asked about whether they feel driverlesscars may hurt the auto insurance business, somecollision repairers have replied, “The insurers willfigure out some way to make it mandatory to keepyour same level of insurance.” But Long’s com-ments at the Greater Boston Chamber of Com-merce breakfast seem to indicate real worry on theother side.

Long said in the Globe story that more than 60percent of consumers trust driverless technology.But he personally still prefers to use a steeringwheel and drive a car.

INTER-MIX™

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INTER-MIX™ seam sealers are 100% solids, two-component epoxy systems thatare quick to set up and cure. No waiting for solvents to escape or for moisture curereactions to occur. INTER-MIX™ epoxy seam sealers help you move repairs inand out of your shop faster – saving you time, space and money.

8412 INTER-MIX™ 5 Semi-Flexible, 5-Minute Working Time

Used for sealing vertical & horizontal seams and joints. Great for door skin

beads! Edges round out to duplicate OEM seams! Will not retain brush marks.

8411 INTER-MIX™ 15 Semi-Flexible, 15-Minute Working Time

Used for sealing vertical & horizontal seams and joints. Great for door skin

beads! Edges round out to duplicate OEM seams! Will not retain brush marks.

8405 INTER-MIX™ 10 “Thick-Set,” Semi-Flexible, 10-Minute Working Time

A bare metal seam sealer used for sealing vertical & horizontal seams and

joints. Great for Push and Pull, Notched Spreader and Zig-Zag beads, also

retains brush marks!

8413 INTER-MIX™ 15 Extremely Flexible, 15-Minute Working Time

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Used for sealing roof seams, drip rails and other horizontal seams and joints.

Flows to a smooth finish.

International Epoxies & Sealers is a U.S. manufacturer of high quality adhesives,sealants, foams, coatings and other specialty products. Since 1985, our objectivehas always been to provide our customers with the highest quality products andservices at the fairest prices. We have Salesmen and Distributors located throughoutthe U.S. to better serve your needs. Let us help you grow your business. Visitwww.useies.com or call 800-451-7206.

Distributor and Salesmen inquiries welcome.

NACE Booth #25008 SEMA Booth #11086

Automotive Service Association (ASA) leaders trav-eled to Capitol Hill to meet with members of Con-

gress to discuss the negative effects of the Most FavoredNation (MFN) clause. ASA noted the problems MFNclauses can create for shops, consumers and insurers.

“We were encouraged by the interest in Washington,D.C., and look forward to continued conversations withour representatives,” said Dan Risley, ASA presidentand executive director. “Most Favored Nation clausesare harmful to consumers, shops and some insurers.Michigan has recognized the damage these clauses cando in a marketplace and acted accordingly with regardto health insurance. This same reasoning should applyto vehicle repair, and property and casualty insurance.This is the single most important issue we have in thecollision repair industry today.”

The Louisiana legislature has completed action onS.B. 32, which will establish stricter definitions and

penalties for airbag fraud. Act No. 105 will take effectin August 2014 and reads:

� No person shall knowingly install or reinstall inany motor vehicle a counterfeit or nonfunctionalairbag or any other object intended to fulfill the func-tion of an airbag that does not meet the definition of“airbag” set forth in this bill.

� No person shall knowingly manufacture, import, sellor offer for sale a counterfeit or nonfunctional airbag.

� No person shall knowingly sell, install or reinstalla device in a motor vehicle that causes the diagnosticsystem of the vehicle to indicate inaccurately that thevehicle is equipped with a functional airbag.

Along with Louisiana, the New York legislature isconsidering Assembly Bill 9730, which affects the saleand installation of recycled airbags. It also proposespenalties for those who install, reinstall or offer forsale any “inflatable occupant restraint system” thatdoes not meet federal safety requirements.



LegislativeASA Members Meet with Congress toDiscuss Most Favored Nation Clause

Louisiana Legislature Enacts Bill to Curb Airbag Fraud

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Collex Collision Experts,with 15 locations through-out Michigan and Florida,has been acquired by TheBoyd Group.

“We couldn’t be happiertoday. This is a big win forall the team members atCollex Collision Expertsalong with our cus-tomers,” said Nick Booras,vice president of sales andmarketing for Collex Col-lision Experts. “You will

continue to see the samefriendly local faces thatyou always have.

“Paramount in thisdeal was the fact that thevalues of The BoydGroup matched those ofCollex Collision Experts.Making sure all of ourcustomers are drivingsafe, reliable vehicles hasbeen priority one for bothorganizations and willcontinue to be.”

The Boyd Group is thelargest operator of non-franchised collision cen-ters in North America. Itoperates as Gerber Colli-sion & Glass in the U.S.

“You don’t get to beNo. 1 in North Americawithout providing excel-lent service and puttingthe customer first,” saidBooras. “We’re proud tonow be part of that sameteam.”



The Boyd Group Acquires 15-StoreCollex Collision Operation

Consolidation Nu-Look Collision Opens 12th LocationNu-Look Collision Centers, a

Rochester, N.Y.-based MSO,

has opened its 12th location

in the city of LeRoy. This

news arrives just weeks

after announcing the acqui-

sition of the 11th Nu-Look

store on Lyell Avenue in the

town of Gates.

“We owe our growth and

success to our hard-working

employees and to our loyal

customers,” said Nu-Look

President Todd Zigrossi.

“Without the support of the

community, and their trust

in our services, we wouldn’t

be going strong after 33

years. We’re honored to be

the largest locally-owned

collision company in western

New York.”

Fix Auto USA has enteredthe Alaska market withfive locations in the state,bringing the total number

of franchises to 59.“We’re ecstatic to join this elite

and exclusive brand of high-caliber

operators as we adapt to shiftingmarket dynamics,” said Tony Stan-ley, the Fix Auto Alaska franchisegroup (formerly Driven AutoBody). “The benefits of being partof Fix Auto are many. We’re look-ing forward to seeing the beneficial

impact the organization’s buyingprograms, operational best prac-tices, marketing and technologywill have on our business.”

The five stores making the tran-sition to the Fix Auto brand are:

� Driven Auto Body – Gambellbecomes Fix Auto Gambell

� Driven Auto Body – Soldotnabecomes Fix Auto Soldotna

� Driven Auto Body – Spenardbecomes Fix Auto Lake Hood

� Driven Auto Body – Valley be-comes Fix Auto Valley

� Driven Auto Body – Fairbanksbecomes Fix Auto Fairbanks

“The team at Driven Auto Bodyhas a proven track record as excel-lent operators, and Tony has certain-ly demonstrated, time and again, avision that allows his enterprise tostay ahead of the curve,” said FixAuto President and COO PaulGange. “The Driven Auto Bodyteam is a welcome addition to thealready burgeoning number of high-level facilities that are helping tostrengthen our brand throughoutthe Western U.S.”



Fix Auto Enters Alaska Market

Service King Finalizes SterlingCollision Centers Acquisition

Service King Collision Repair Cen-ters announced that it has finalizedthe acquisition of Sterling CollisionCenters. Service King now operates175 locations across 20 states.

Service King said the acquisition“supports our growth strategy andfurther strengthens our position asthe premier provider of high-quali-ty collision repair backed with ex-ceptional customer service.”

“Acquiring a company like Ster-ling Collision Centers is aboutmore than expanding our networkwith bricks and mortar,” said ChrisAbraham, CEO of Service King.“The strength of our organizationlies within our people, and we are

Continued on pg. 80

extremely excited to wel-come the very talentedSterling team to the Serv-ice King family. ServiceKing has offered con-sumers a superior colli-sion repair experience formore than 38 years, andwe are well positioned togrow that legacy withwhat I believe is the mostcapable and experiencedteam in the industry.”

Sterling’s 62 locationswill begin operating asService King immediately,and the rebranding ofSterling stores across thecountry began on June 3,2014.

Added Jeff McFadden,president of Service King,“Service King has built a

strong reputation in thecommunities where we dobusiness. We recognizethat collision repair is notjust about the car, but it’sabout the care and thelives we touch every day.This acquisition allows usto expand our footprint

and offer more consumersan unparalleled, personalrepair experience.”

Service King now em-ploys more than 3,800technicians and supportteam members and offerscollision repair services inthe following states: Ari-

zona, Arkansas, Califor-nia, Colorado, Georgia,Florida, Illinois, Mary-land, Michigan, Missis-sippi, Nevada, New York,Ohio, Oklahoma, Penn-sylvania, South Carolina,Tennessee, Texas, Utahand Virginia.



Continued from pg. 78

H&V Collision to Open New Location in Hudson Valley, N.Y.

H&V Collision Center will be expandinginto the Hudson Valley region, adding afifth location in the Kingston market andcontinuing the expansion of the family-owned collision repair business.

Located in Ulster County, the new loca-tion will be H&V Collision Center’s firstoutside the Capital Region, and fourthnew location in just over five years.

“We are very excited to be expand-ing H&V Collision Center into the his-toric Hudson Valley, and growing into

a new region and market,” said VartanJerian Jr., vice president of H&V.“H&V Collision Center is proud tohave formed many long-lasting rela-tionships with customers in our homearea, and look forward to serving newfriends in the Ulster County area. TheUlster County/Kingston area is agrowing, busy market, and it madegreat sense for H&V to set up shophere and begin our work in the Hudson Valley.”

Measure Vehicles in Real-Time, Even in Out-of-Level Conditions, with Chief LaserLock™ Live Mapping™ System


ProductSpotlight


The LaserLock™ Live Mapping™ system fromChief Automotive Technologies is the next evo-lution in computerized collision repair measur-ing. It includes a new laser scanner with

out-of-level measuring capabilities; 45 targetsand a wide range of attachments; a lockable,portable workstation equipped with dual flat-screen monitors, computer and color printer;and exclusive Chief software.

LaserLock measures up to 45 individualpoints on a vehicle simultaneously inreal time – more than any othersystem – so collision repair tech-nicians can monitor dimen-sional changes as they occurduring pulling. As a result,there is no need to recalibrateafter every pull and the riskof putting additional damageinto a vehicle is reduced.

The lightweight, durable new Laser-Lock scanner features easy-to-reach handlesand a compact profile that maximizes the laser’sline of sight. As a result, LaserLock can map anentire vehicle at once, making it possible to repairvehicles with diamond or twist damage, as well asframes that have both front and rear damage.

LaserLock’s state-of-the-art design allows for vehiclesto be measured even when they are not level, so set-uptime is reduced. This also makes LaserLock a naturalchoice for the estimating bay, where it can be usedwith a simple two-post lift to measure every vehicle,resulting in better scheduling, more efficient repairplans, improved cycle times and happier customers.

Moving LaserLock from the estimating bay to theframe rack is easy using the system’s portable work-

station. This custom steel cabinet sits on casters, so itcan glide around the shop as needed.

One of LaserLock’s two flat-screen monitors is dedi-cated to the live mapping system, while the secondary

Web-enabled monitor can be used to runan estimating system or to access OEMrepair procedures. With LaserLock, tech-nicians never need to leave the bayduring the repair process, leading to sig-nificantly greater productivity.

The lockable workstation has a securebody scanner drawer, as well as securestorage for the computer, monitors andprinter.

Recognizing that modern vehicles areincreasingly complex to repair, LaserLockincludes a step-by-step tutorial programto help technicians make higher qualityrepairs quickly, accurately and profitably.The system includes on-screen photosof recommended targets and attachments,as well as where they should be placed.Chief also includes free interactive livesupport.

LaserLock enables shops to print full-color maps ofall the collision damage on a vehicle as part of the esti-mating process, as well as a final inspection reportshowing that the vehicle has been returned to OEMspecifications.

Like all Chief measuring systems, LaserLock usesthe company’s exclusive vehicle spec data. Chief per-sonnel measure every vehicle themselves with theframe anchored and the suspension unloaded in orderto provide technicians with “real world” accuracy unmatched by any other source. Chief specs covermore vehicles than anyone else’s.

For more information about the Chief Automotive Technologies LaserLock live mapping system,

contact your local Chief distributor, visit www.chiefautomotive.com or call (800) 445-9262.

Caliber Collision Centersannounced that it has ac-quired Haddock Colli-sion Centers in NorthCarolina. The companyhas five stores in theRaleigh, N.C., marketand has operated formore than 40 years.

This acquisition bringsthe total number of Cal-iber stores to 177 nation-wide.

“Our acquisition ofHaddock Collision Cen-ters in North Carolinarepresents our first ofmany acquisitions tocome in the eastern U.S.,”said Steve Grimshaw,CEO of Caliber. “I amvery excited to have Todd

McGowan and the entireHaddock Collision organ-ization join forces withCaliber. The HaddockCollision facilities andmanagement team areperfectly aligned withour purpose, vision andmission by consistently

delivering unparalleledcustomer satisfaction andindustry-leading opera-tional consistency in theRaleigh, N.C., area forover 40 years.”

Added Todd Mc-Gowan, owner of Had-dock Collision, “We

created a place wherepeople really do want towork and are pleased thatCaliber Collision will of-fer our employees abright future, while serv-ing the community in thefashion they have come toexpect.”



Caliber Collision Acquires Five Locations in North Carolina

Car West Auto Body Opens New Location in Dublin, Calif.Car West Auto Body celebrated the opening of its new 26,500-square-foot Dublin,Calif., location on June 17 with 350-plus guests. The new location is the sixth forthe Bay Area-based business.

Located directly across the street from their current location, Car West AutoBody will mark the entrance to the Dublin Auto Mall. Family, friends, businesspartners gathered in support of Car West’s grand opening celebration and ribboncutting ceremony. Vice Mayor Don Biddle and the City of Dublin’s Hazel Wether-ford were also present in support of the celebration. Guests enjoyed live jazz mu-sic, food, libations and raffles prizes.

Pro Spot Names Art Ewing Canadian Sales

& Marketing Director

be to support and further developPro Spot’s existing distribution inCanada.

Ewing, a residentof Vancouver, hasbeen involved inselling and market-ing Pro Spot prod-ucts for several yearsin his past role aswelding productsmarketing managerwith Lordco AutoParts. He has alsoheld North Ameri-can marketing and sales manage-ment roles with a major industrialgases manufacturer.

Ewing is a welding engineeringtechnologist graduate from theSouthern Alberta Institute of Tech-nology, holds a special certificate infinance from the British ColumbiaInstitute of Technology, and is agraduate of Vancouver Communi-ty College’s Provincial Instructorsand Adult Learning Program. He’sa certified welding engineeringtechnologist with the Edison Weld-ing Institute and the CanadianWelding Bureau.

“We are committed to providingour growing Canadian marketwith innovative welding productsand great representation fromwithin Canada,” said Ron Olsson,president of Pro Spot International.“Art Ewing’s skills and knowledgemake him an incredible asset to theCanadian market, we are excited tohave Art on board.”

Pro Spot International is a leadingmanufacturer of resistance spotwelding equipment and tools spe-cializing in applications for the colli-sion repair industry and now thefabrication and restoration industryas well. The company is headquar-tered in Carlsbad, Calif.



CorporatePro Spot International announcedthe appointment of Art Ewing assales and marketing director –Canada. Ewing’s main focus will

Art Ewing

PPG Automotive Refinish has re-leased an enhanced version of itsPaintManager program specific tothe RapidMatch X-5 spectropho-tometer and software workflow.

The new RapidMatch software –with an improved color formula re-

trieval workflow process – is designed to increase speed, produc-tivity and formula match accuracy.Combined with PPG’s advancedRapidMatch X-5 spectrophotometer,the software uses sophisticated algo-rithms to join match rating with a

new texture indicator, resulting in aheightened level of color characteri-zation and formula precision.

According to Mary Kimbro, glob-al color director, PPG, the softwarerequires no hardware changes, iseasier to use, yields faster resultsand, in many cases, can find the bestcolor match in just two clicks.

“We have been able to success-fully create a higher industry stan-dard for color matching,” saidKimbro. “The RapidMatch X-5spectrophotometer and our newoptimized software, with all its up-grades, work together to make thePPG system more effective and ef-ficient than ever.”

The enhancements automate rou-tine processes, streamline formulasearches, quickly identify bestmatches and accelerate downloads.With no new hardware required,collision centers only need to updatetheir current PaintManager softwareto improve their capabilities. Cus-tomers utilizing the Internet will beupdated automatically.

One of the software’s key fea-tures is the capability to addresstexture. An integrated texture indi-cator compares the returned colorformulas’ pigment component tothe target vehicle color, therebyserving as a guide to the final sur-face appearance.

The new software employs a“Green-Green-Go” search-rate-mixprocess to ensure the best startingcolor formula. When the Rapid-



PPG Releases New RapidMatch Software Workflow

PPG’s RapidMatch X-5 spectrophotometer.

Match X-5 spectrophotometer analyzes the target col-or, the texture and match rating results are displayed.A green match rating assures blendable results. Cou-pled with a green texture “OK” – indicating the re-turned formula’s texture is equivalent to the vehiclebeing repaired – the technician can then go directly tomix. Other formula returns may be finer or coarser(F=finer, C=coarser) compared to the target color.

Another feature is a redesigned landing page with asimplified one-search launch pad of color information thathas eliminated the need for separate OEM and wild cardsearches. The software also automatically predicts if thetarget color is a solid or metallic, and job tracking is easywith options to add customer information for each repair.

Since high-throughput collision centers often usethe RapidMatch X-5 spectrophotometer for all theircolor matching, an automatic download configurationis available with the software. Measurements from thedevice are organized and displayed as a reading list ofcolor bars to ease sorting.

PPG introduced the RapidMatch software matchrating and blend/check workflow in 2010. Since then,unit sales of the five-angle measuring device havetripled globally.

Kaeser Compressors PostsNew Blog EntryKaeser Compressors Inc. has published a new blog entry to company blog Kaeser Talks Shop:www.kaesertalksshop.com.

Authored by System Design and EngineeringManager Neil Mehltretter, the blog entry explainswhat artificial demand in compressed air systems is and gives a quick, easy and free way to help reduce it.

“While plants may take a look at the leaks intheir compressed air system, they usually ignore artificial demand,” says Mehltretter. “Since artifi-cial demand can account for 10 to 15 percent of theair in your system, this is an overlooked area ofsavings potential.”

For more technical resources for the compressedair industry, Kaeser’s blog features articles such as:

� Consider All the Costs of Compressed Air� Receiver Tanks for Small Compressed Air Systems� Piston Versus Rotary Screw Compressors� CAGI Data Sheets: An Apples to Apples Comparison



Demand for lightweightautomotive materials inthe North American lightvehicle market is antici-pated to rise 5.2 percentannually to 22.3 billionpounds in 2018, accord-ing to research conductedby The Freedonia Group,an Ohio-based market re-search firm.

Titled “LightweightAutomotive Materials inNorth America,” thestudy discusses how the

current race to lightenthe automobile is largelybeing driven by increas-ingly stricter fuel econo-my standards beingadopted throughoutNorth America.

“Advances will signifi-cantly outpace gains inautomotive materialsoverall,” said analystBridget McMurtrie. “Reg-ulatory pressure will bethe major force pro-pelling growth.”

The best growthprospects are exterior andstructural components,propelled by the ongoingdevelopment of light-weight materials suitablefor use in structural ap-plications and the sub-stantial weight savingssuch materials can pro-vide. The study expectsthat this segment will ac-count for nearly three-quarters of total averagevehicle weight reductionthrough 2023, with bodyand frame applicationsalone accounting forabout half. According tothe study, interior appli-cations are relatively ma-ture and will see onlylimited growth going for-ward, as plastics have

long been used in interiorcomponents, thus re-stricting opportunities forfurther weight reduction.

Aluminum and high-strength steel representthe primary lightweightmaterials employed inthis market. The Freedo-nia Group expects thataluminum will enjoy rap-id growth in exterior andstructural applications, asautomakers explore theadoption of this materialin place of steel for bodycomponents such as clo-sures and panels.

In addition, The Free-donia Group states thatautomakers will closelyfollow Ford’s highlypublicized switch to alu-



NationalDemand for Lightweight AutomotiveMaterials in North America to Reach22.3 Billion Pounds

Continued on pg. 92

minum for the body ofits 2015 F-150 pickup todetermine whether theytoo will make a similarmove. According to thestudy, high-strengthsteel is predicted to offerthe best opportunitiesfor growth based on itsrelatively low cost andthe ongoing develop-ment of new grades thatprovide a combinationof exceptional strengthand formability, whichwill make it the materialof choice for structureand frame applications.

Engineering plasticswill remain the leadingpolymer type throughthe forecast period, hav-ing successfully sup-planted metals in anumber of applicationsbased on advantagessuch as their ability toenhance design free-dom. Demand for high-performance compositeswill rise rapidly from asmall base due to thematerials’ substantialvehicle weight savingspotential, although theirhigh cost will remain anobstacle to more wide-spread adoption.

Leaders of the Automotive Recy-clers Association (ARA) are urg-ing General Motors (GM) to live

up to its “New Industry Standard forSafety” by providing professional auto-motive recyclers with access to crucialOE parts data.

General Motors CEO Mary Barra isset to testify on Capitol Hill for a secondtime regarding the company’s massiveignition switch recall, while ARA mem-bers from across the nation are in Wash-ington for the association’s annual HillDay to advocate on behalf of the profes-sional automotive recycling industryand their need for parts data.

The association says that the com-plexity of today’s automotive supplychain underscores the importance of ac-cess to VIN-specific OEM parts num-bers, build sheet data and otheridentifying information. Automakersrely on an expansive number of suppli-ers from all over the world, and minorvariations in a vehicle part model, mod-ifications to manufacturing materials,external factors impacting a third-partysupplier that slow or stop production,and a myriad of other risks can all havetremendous impact on – and potentiallydisrupt – parts supply sources, accord-ing to the ARA.

“The significance of OEM part num-bers is demonstrated by the ongoing GMignition switch recall investigation and

revelation that GM engineered a new ig-nition switch nearly a decade ago,” saidARA CEO Michael E. Wilson. “However,the redesigned part was not given a newpart number – an act contrary to stan-dard operating procedures. As a result,redesigned parts were introduced intothe market and installed on GM vehicles.And without a new part number, thosecorrected ignition switches are indistin-guishable from the flawed switches thatresulted in 13 deaths.”

Added ARA President Ed MacDonald,“Information about a part and where it isproduced is critical to all stakeholders inthe automotive parts supply chain. Thatis why ARA members are up on theCapitol Hill meeting with their federalrepresentatives and asking for their sup-port in requiring auto manufacturers toenhance access to recall information andintegrate parts data into the automotiveparts supply chain.”

ARA went on record earlier this yearat the 14th International AutomotiveRecycling Congress in Brussels, Bel-gium, when Wilson called on the auto-motive manufacturers in attendance “tobecome better economic, environmentaland safety partners by releasing OEMbuild sheet data to the professional au-tomotive industry’s inventory manage-ment entities, just as they do forinsurance companies and the collisionrepair industry.”



Circle 122 for Reader Service »

Continued from pg. 90 Automotive Recyclers AssociationUrges GM to Supply OE Parts Data

By Gina Kuzmick

Richard Henegar Jr.,better known as “Ju-nior” to his friends

and customers, firstachieved fame two yearsago when he fixed a Rad-ford University student’s

car free of charge after itwas vandalized with ho-mophobic and derogatoryslurs. Word of his gooddeed became so wide-spread that it landed him aspot on “The Ellen De-Generes Show” andearned an appearancefrom both Ellen DeGeneresand pop star Pink in one ofhis shop’s commercials.

But the estimator andmanager of Quality AutoPaint & Body in Roanoke,Va., decided that there wasstill more to do in theworld. After receiving suchpositive feedback, Henegar

established his own non-profit called Quality Cares,which aims to help indi-viduals in need throughautomotive repair. His firstproject? A revamped vanfor a local shelter calledRescue Mission that spewsbubbles and spreads hap-piness wherever it travels.

“My inspiration for thedesign was the kids,” hesaid, explaining that thevan transports children be-tween the shelter and aday camp-type program.“Most of them are home-less and pretty unfortu-nate. I wanted to take their

mind away from their dai-ly struggles with some-thing cool, somethingthey’ve never seen before.”

The van had enduredyears of wear and tear andwasn’t exactly in the great-est condition. So Henegarreached out to a friendwho owns a vinyl graphicshop to see if he could helpwith the redesign. The twomen, along with anothercolleague, worked to createa vinyl “animatedRoanoke” design for thevan’s interior, which color-fully showcases popularsights around downtown.


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Virginia-Based Body Shop Revamps Local Children’s Shelter Van

Richard Heneger Jr. got lots oflove for helping the RescueMission.

The outside of the van nowserves as a traveling bill-board for Rescue Mission,showcasing shelter chil-dren holding up signsthanking local individualsand businesses whohelped sponsor the project.

The interior of the vannow features an “animatedRoanoke” theme, and theexterior serves as a bill-board for Rescue Mission.

To make the van evenmore kid-friendly, Henegarinstalled a special hatch atthe vehicle’s rear thatreads, “Bubbles Only.” In-stead of opening to receivefuel, the hatch emits anoutpour of bubbles, muchto the children’s delight.

Under the banner ofQuality Cares, Henegar’s

dream project is to over-haul a school bus and useit as a platform to combatbullying, since a majorityof bullying takes place onbuses. “I do a lot of volun-teer work for schools andspeak about anti-bullying,”

he said. “I’d like to trick aschool bus out so muchthat every kid would wantto ride it. We’d call it the‘Cool Bus.’ Bus driverscould keep a tally on theirroutes, and the route thathas the most well-behaved

kids will get to ride theCool Bus for a week.”

But he says that projectwill have to wait until hehas more time and moneyto fund it. “I think Pinkwould be all over it,though,” he said.



Ford Unveils Lightweight Concept CarJust several months after introducing the all-aluminum new F-150, Ford Motor Com-pany is now aiming to implement that same lightweighting construction to sedans.

The automaker unveiled its Light-weight Concept vehicle, which uses ad-vanced materials to explore futureweight-reduction solutions that couldimprove performance and fuel efficien-cy while reducing carbon dioxide emis-sions. The design reduces the weight ofa 2013 Fusion to that of the smaller FordFiesta, resulting in a nearly 25 percentweight reduction.

Ford’s Lightweight Concept vehicle.

The vehicle representsthe latest phase of Ford’sresearch into developingsustainable technology so-lutions that are affordablefor consumers and can beproduced in large vol-umes across the productlineup. This research hasalso led to a weight reduc-tion of up to 700 poundsin the all-new F-150.

“Consumers todaywant better fuel efficien-cy, but they also wantmore technology and fea-tures in the car, whichusually adds weight tothe vehicle,” said RajNair, Ford group vicepresident, Global ProductDevelopment. “A focuson lightweighting will befundamental to our in-

dustry for years to come,and we are investigatingmany advanced materialsapplications as possiblesolutions for weight re-duction in our vehicles.”

To reduce weight, Fordengineers incorporatedadvanced materials intothe entire design of thevehicle, including powertrain, chassis, body, bat-tery and interior featuressuch as seats.

The research vehiclewas developed with theU.S. Department of Ener-gy’s Vehicle TechnologiesProgram, together withCosma International – asubsidiary of Magna In-ternational – to illustratelong-term potential light-weighting solutions.



NHTSA Study Says CarCrashes Have $871Billion Impact on U.S.

The U.S. Department of Transportation’s NationalHighway Traffic Safety Administration (NHTSA)has released a new study that underscores the higheconomic toll and societal impact of motor vehiclecrashes in the U.S.

The price tag for crashes rings in at $871 billion ineconomic loss and societal harm. This includes $277billion in economic costs – nearly $900 for each per-son living in the U.S. based on calendar year 2010data – and $594 billion in harm from the loss of lifeand the pain and decreased quality of life due to injuries.

“No amount of money can replace the life of aloved one, or stem the suffering associated with mo-tor vehicle crashes,” said U.S. Secretary AnthonyFoxx. “While the economic and societal costs ofcrashes are staggering, today’s report clearly demon-

strates that investments in safety are worth everypenny used to reduce the frequency and severity ofthese tragic events.”

NHTSA’s new study, The Economic and SocietalImpact of Motor Vehicle Crashes 2010, cites severalbehavioral factors as contributing to the huge pricetag of roadway crashes based on the 32,999 fatali-ties, 3.9 million non-fatal injuries and 24 milliondamaged vehicles that took place in 2010. Key find-ings include:

Drunk Driving: Crashes caused by drivers underthe influence of alcohol accounted for 18 percent ofthe total economic loss due to motor vehicle crashesand cost the nation $49 billion, an average cost of$158 for every person in the U.S. Including lost qual-ity of life, these crashes were responsible for $199billion or 23 percent of the overall societal harmcaused by motor vehicle crashes. More than 90 per-cent of these costs occurred in crashes involving adrunk driver with a blood alcohol concentration(BAC) of .08 or higher.

Speeding: Crashes involving a speeding vehicletraveling faster than the posted speed limit or toofast for conditions accounted for 21 percent of the

total economic loss and cost the nation $59 billionin 2010, an average cost of $191 for every person inthe U.S. Including lost quality of life, these crasheswere responsible for $210 billion or 24 percent ofthe overall societal harm caused by motor vehiclecrashes.

Distraction: Crashes involving a distracted driveraccounted for 17 percent of the total economic lossand cost the nation $46 billion in 2010, an averagecost of $148 for every person in the U.S. Includinglost quality of life, these crashes were responsible for$129 billion or 15 percent of the overall societal harmcaused by motor vehicle crashes.

Pedestrians and Bicyclists: Crashes involvingpedestrians and bicyclists accounted for 7 percent ofthe total economic loss and cost the nation $19 bil-lion in 2010. Including lost quality of life, thesecrashes were responsible for $90 billion or 10 percentof the overall societal harm caused by motor vehiclecrashes.

Seatbelts: Seatbelt use prevented $69 billion inmedical care, lost productivity and other injury- relat-ed costs. Conversely, preventable fatalities and injuries


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Continued on pg. 99



are? Our organization defines the cus-tomer as “anyone/anything who hasa vested interest in the successful com-pletion of repairs.” So, to us, our cus-tomers are:

1. The consumer2. The insurance company 3. The insurance agent4. Our employeesIn the past, customer service was

solely focused on the vehicle owner – and that was if you were agood shop. But there are other peo-ple who factor into many businessmodels, and we treat them as cus-tomers, too. Customers are con-cerned less with your challenges asthey are with their own, and rightlyso. That’s human nature. Creatingways to connect with customers is

the only key to keeping them, andthat’s called communication.

Your customer will be a lot moreunderstanding regarding winter chal-lenges when you already have a planin place and make that preemptivecall or text, advising them of winter-related delays/challenges. Sadly, manyshops today are still not prepared forthe unexpected. Advising a customerthat their car is late after the deliverydate has expired is too late. Beingproactive is the key to a calm, under-standing customer.

I would hate to see what our storeswould look like if we didn’t requiredaily documented communication.Updating every other day is a day toolate because too much can happen inone day. In the customer’s mind, assoon as the snow melts, it’s as if itnever happened. Despite all of the ef-

fort, communication and extendedhours, there are those out there whowill hold you to the same standard inthe beginning of September (tradition-ally a slow month) as they will in thepeak of winter. Pair this with a brutalwinter, complex parts procurementand delivery challenges, continuedemphasis on performance measure-ment such as CSI, cycle time, lossseverity, etc., and…well, welcome toour world.

Our KPIs were negatively impacted.Time from parts order to deliver dou-bled, time from car arrival to shop toestimated doubled and cycle time in-creased like never before in the lastquarter of 2013. But fortunately, noneof our insurance relationships werecompromised. We were still held tothe same standards with KPIs despitea 20 percent increase in cars to thestores (not including customers comingto stores just for estimates and ulti-mately not choosing us to do therepair). There were some unofficialconsiderations made by our insurancepartners in lieu of the extraordinarycircumstances, and for that we wereextremely grateful.

A 20 percent increase in revenuemight sound like a godsend to some,but when you operate on the marginswe do and employ Six Sigma leanpractices, 20 percent for too long cansuffocate you as you’ll bottleneck atsome point. There is only so much ni-trous in the canister.

Our profit margins in fourth quarter2013 and first quarter 2014 were theworst we ever had. We were in thered, and that pretty much says it all.

Are You Ready? » Are you ready? Idon’t know about you, but the nexttime someone tells me how lucky wewere to have gotten all this business,I’ll happily agree. But silently, to myself,I’ll be praying that Old Man Wintertakes a well-deserved vacation. BSB

Lou Berman is vice president of sales forCollision Care Auto Body Centers. He can be reached at [email protected].




to unbelted occupants accounted for 5 percent of the total eco-nomic loss and cost the nation $14 billion in 2010. Includinglost quality of life, failure to wear seatbelts caused $72 billionor 8 percent of the overall societal harm caused by motorvehicle crashes.

“We want Americans to live long and productive lives,but vehicle crashes all too often make that impossible,”said NHTSA Acting Administrator David Friedman. “Thisnew report underscores the importance of our safety mis-sion and why our efforts and those of our partners to tacklethese important behavioral issues and make vehicles saferare essential to our quality of life and our economy.”

The economic cost of motor vehicle crashes in the U.S. isthe equivalent of 1.9 percent of the $14.96 trillion gross do-mestic product (GDP) in 2010. Factors contributing to theprice tag include productivity losses, property damage,medical and rehabilitation costs, congestion costs, legaland court costs, emergency services, insurance administra-tion costs and the costs to employers, among others. Over-all, nearly 75 percent of these costs are paid through taxes,insurance premiums and congestion-related costs such astravel delay, excess fuel consumption and increased envi-ronmental impacts. These costs, borne by society ratherthan individual crash victims, exceeded $200 billion.


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Change Tires With EaseThe R80DTXF tire changer features an automatic bead lifter, variable speedturntable and bilateral bead loosener withdirect hand-operated controls. Other fea-tures include a traveling drop-center tool,top bead assist rollers, dual lower bead lift-ing discs and a nylon non-marring wheelrestraint device. BendPak/Rangerwww.rangerproducts.com


Prevent Cross-Contamination BetweenSteel and AluminumSteck Manufacturing’s Aluminum Conversion Kit aims to pre-vent corrosion on aluminum components. The kit includes SoftStrike Rubber Dolly Body Covers and Dinging Spoon Cover,made from Buna rubber for steelheel dollies and dinging spoons.It also includes a Soft Strike Ham-mer Cover, which is made ofvinyl to allow for an easy transi-tion from working body tools onsteel to aluminum without fear ofcross-contamination.Steck Manufacturingwww.steckmfg.com


Easily Update Frame RackChief’s Structural Holding Package allows shop opera-tors to use their existing frame racks to properly repairaluminum vehicles. Included in the 2015 Ford F-150 Collision Repair Program, this product includes morethan 50 components such as vice clamps and bolt-onsurface plate attachments. The product’s four bases fit into the rectangular deck holes on most Chief frameracks, so there is no need to modify an existing

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Light-Duty PullerCapable of taking on up to 5 tons,the Quick Puller offers dual inde-pendent pulling capacity to enablesetting up two pulls at the sametime. Ideal for tight spaces, the integrated handle and swivelwheels ensure mobility for easysetup and storage. Combine theQuick Puller with Wedge Clamp’sEZE Tie Down anchoring systemfor a productive express repair bay.Order now through July 31, 2014,and receive a $150 rebate. Call(800) 615-9949.Wedge Clamp Systemswww.wedgeclamp.com



Certified SteelBumpersDiamond Standard Certified FrontSteel Bumpers are 100 percentCAPA certified and are the onlyU.S.-made plated and painted frontsteel bumpers. Dynamic crash test-ing, cradle to grave parts trace-ability and the Diamond StandardSecurity Shield product liabilitywarranty are just some of theadded benefits of these bumpers. Diamond Standard Partswww.diamondstandardparts.com



AAPEX 95Advanced Measurement Systems, Inc. 84AFC Air Filtration Co. 86Aflac 35Aframe Spray Booths 46Airomax/U.S. Body Products 82AirVANTAGE 18Amerex Corp. 50ArmorThane Coatings Inc. 62Automotive Mgmt Institute 94Automotive Service Equipment 60Automotive Video/AVI 79AutoZone 51Axalta Coating Systems 5BASF Corp. 15, 52-53BendPak 56, InsertBlair 50Campbell Hausfeld 93Car-O-Liner Co. 19CCC 21Cebotech Inc. 70Certified Auto Parts Association 7Chief Automotive Systems 81Chrysler Group LLC 31Crash-writeR 92, 96DEKRA 98Dent Fix Equipment 9Diamond Standard Brand Parts Group 17

Dominion Sure Seal 40DV Systems 26Dynabrade Inc. 94Eagle Abrasives 97, 101Evercoat 3Excel Tees 96FS Curtis 72Garmat USA 11, 45Herkules Equipment Corp. 28Homak Manufacturing Company Inc. 87Hyundai Motors America 47Induction Innovations 38Innovative Tools & Technologies, Inc. 29International Epoxies & Sealers 73, 76Kaeser Compressors 78Lenco D/B/A NLC, Inc. 80Malco Products 99Martech Services Co. 36Matrix System Automotive Finishes LLC 39Messe Frankfurt 61Mirka Abrasives 48Mobile Spray Technology 74Motor Guard Corp. 98NACE 65NAPA 75, 91Nissan Motor Corp. USA 23O’Reilly Auto Parts 83Performance Gateway 42

PPG Industries Cover 2-1Pro Spot International Cover 3Pro-Spray Finishes 57RBL Products 4, 59Reflex Truck Liners 56Repair Shop Loans 90Rubber-Seal Products 16S.A.I.M.A. Of N. America Cover 4Sata Spray Equipment 27Scorpion Truck Bed Linings 58SEMA 85Sherwin-Williams Co. 49Shop-Pro Equipment 37Southern Polyurethanes 67Spanesi 22Spraymax 43Steck Mfg Co. 32Tsunami Compressed Air Solutions 99TYC/Genera Corp. 41, 69Ultimate Linings 55UniCure Spray Booths 42, 88Urethane Supply Co. 33U.S. Chemical & Plastics 77Valspar/Debeer 71Wizards Products/RJ Star Inc. 89Zendex Tool Corporation 58

ADVERTISER INDEXCOMPANY NAME PG # COMPANY NAME PG # COMPANY NAME PG #


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QualitySolutions forthe Collision

Industry

www.bodyshopbusiness.com

Procedure %Yes %No %Sometimes

Seam sealer 73 11 16Removal of stripes/decals/moldings 79 7 14Color sand and buff 53 18 29Panel bond kits 74 14 13Misc. hardware & fasteners 69 7 24Pull for access 74 3 23LKQ cleanup 77 10 14Sound deadening restoration 72 8 20Dismantle of LKQ assembly 69 10 21Tape/mask jambs 56 25 19Diagnostic labor 53 15 32Body materials 37 37 26Mask for prime 30 49 21Detail for delivery 22 49 29Feather edge & block 32 36 32Test fitting of parts 22 52 26Administrative documentation time 9 75 16


Average Number Of JobsPerformed Per Week

5 o

r le

ss

6 t

o 1

0

11

to

15

15

to

20

20

to

30

Ov

er

30

5%

10%

15%

20%

25%

30%

35%

0

Source: 2013 BodyShop Business Industry Profile


24

%

5%

33

%

17

%

13

%

8%

By theNumbersVital collision industry stats

Do You Charge For The Following Procedures?

What Is The Average Number Of Jobs You Perform

Per Week?

On average, each shop performs 12.7

jobs per week; the median is 10.


Yes20%

No40%

Sometimes40%

Do You Feel DRPs Hamper Your Ability To

Properly Repair The Vehicle?

Base: Just DRP shops

bodyshop business, july 2014

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