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September 2012//Vol. 31 No. 9
www.bodyshopbusiness.com
Consolidation Multiple-shop operators are growing in giant fashion. Are they edging out small shops?
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Inside
September September
2012
Vol. 31 No. 9
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ON THE COVER Consolidation The pace of consolidation has quickened within the last few years. What does it mean for the industry and the single-store independents that must compete with multiple-shop operators?
FEATURES
50 The Evolution of Paint 58 NACE Is In N’awlins! TECHNICAL
From the by-product of a bug to today’s environmentally friendly refinishes, auto paint has had a long and fascinating history.
SHOW PREVIEW
Who dat sey dey gonna be at the 30th annual NACE? Only all of your collision repair friends looking for the latest training, technology and networking opportunities.
64 Booth Previews
Take a sneak peek at some of the vendors and their products that will be frontand-center at the upcoming industry trade shows.
SHOP TALK Editor’s Notes
8 14 Web Presence Management 96 Publisher’s Perspective
Change is good...especially when it comes to freshening up the look of your magazine.
East End Body Shop redesigned its website and is getting paid off with higher traffic.
NACE is our party...so let’s show up!
BODYSHOP BUSINESS (ISSN 0730-7241) (September 2012, Volume 31, Number 9): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2012 Babcox Media, Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS, 3550 Embassy Parkway, Akron, OH 44333-8318. Member, BPA Worldwide
DEPARTMENTS Guess the Car ....................................................................................4 Industry Update ..............................................................................12 Tech Tips .......................................................................................20 NASCAR Performance ......................................................................46 Product Showcase............................................................................91
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Guess
the Car
SOLVED!
Reader Contest! Win $50! 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 selected from correct entries and awarded $50. Entries must be received by Sept. 30.
Eek! I won?
*Only one winner will be selected. Chances of winning are dependent upon the number of correct entries received. Employees of Babcox, industry manufacturers and BSB advertisers are not eligible to enter.
#113 See the October issue for winner of Guess the Car #113.
Sore end toe = (Kia) Sorento #112
!
WINNER Jon Porkka, general manager, Rotary Collision, Hyannis, Mass.
#114
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Impale an “A” = (Chevrolet) Impala
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Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 (sshriber@babcox.com) Editor
Change Is Good id you notice anything different about BodyShop Business over the past two months? We hope you did. We redesigned the magazine to present you with a more contemporary, aesthetically-pleasing look. So if we were ever accused of being all substance and no style, well, those days are over!
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Changing our logo caused us some heart palpitations. After all, it had been with us since our start in 1982. One of our graphic designers told me it had been hand-illustrated more than 30 years ago, and even though it was our calling card and had attained national and international recognition, we felt it looked a bit dated and needed to be freshened up. It’s amazing what goes into a redesign. There are almost an infinite amount of “fonts,” or type sizes and styles, to choose from. There are trends to consider in both consumer and business-to-business magazines. Yes, just like fashion, magazines follow certain trends in different eras. I guess we felt like maybe we still had bellbottoms on. Of course, our style has really been changing and evolving
ever since we printed our first issue. Some changes were probably small and unnoticeable, others more drastic. We feel like our latest change falls somewhere in between the two. We know you love us for our content, which one reader recently described to me as “meaty.” But let’s face it, looks count for something, too. If your favorite food was steak, you would probably eat it regardless of how it was presented on the plate to you. But how much better would it taste if it was presented with balsamic reduction drizzled in a pretty pattern around it, with bright green leafy vegetables on the side? We eat with our eyes first, as they say. You probably noticed my new, biggerthan-life column photo, too, as well as our publisher Scott Shriber’s on the back page. I’m sure my mom would appreciate the new glamour shot, but I’m not sure who else would. But hey, I think it makes more of a statement. We think we hit the mark, but that judgment is ultimately up to you. Why don’t you drop me a line and let me know if you like our new look? After all, it’s your magazine. Thanks in advance for the feedback!
Jason Stahl, Editor Email comments to jstahl@babcox.com
Jason Stahl, ext. 226 (jstahl@babcox.com) Associate Editor
Gina Kuzmick, ext. 244 (gkuzmick@babcox.com) Contributing Editors
Charlie Barone, Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, John D. Lyman Sr., Hank Nunn, Carl Wilson Graphic Designer
Lisa DiPaolo, ext. 281 (ldipaolo@babcox.com) Advertising Services
Kelly McAleese, ext. 284 (kmcaleese@babcox.com) Director of Circulation
Pat Robinson, ext. 276 (probinson@babcox.com) Director of eMedia & Audience Development
Brad Mitchell, ext. 277 (bmitchell@babcox.com) Subscription Services
Ellen Mays, ext. 275 (emays@babcox.com) Tel: (330) 670-1234 Fax: (330) 670-0874 Website: bodyshopbusiness.com Corporate
Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Sheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 275, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.
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Industry
Update AkzoNobel Recognizes
Most Influential Women in Collision at Special Ceremony
he San Antonio Convention Center in San Antonio, Texas was the host site for the presentation of the 2012 AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) Most Influential Women in the Collision Repair Industry (MIW) recognition ceremony July 19. This year marked the 13th year AkzoNobel has held this event. The program coincided this year with the I-CAR Industry Event and the Collision Industry Conference. Award honorees followed in the footsteps of more than 70 past recipients. They hold leadership positions within industry associations, shop operations and service sectors of the U.S. and Canadian collision repair industry. They were selected for their contributions to the
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(Left to right) 2012 Most Influential Women Kim Roberts, Catherine Mills and Kim Parson.
organizations they represent, as well as the automotive industry at large and their respective communities. They are: 䡲 Kim Parson – president, Automotive Collision Technologies Inc. – Randallstown, Md. 䡲 Catherine Mills – executive director, Florida Autobody Collision Alliance – Orange Park, Fla. 䡲 Kim Roberts – manager, Fix Auto – Barrie, Ontario “The collision repair industry’s collective strength, image and long-term sustainability is dependent on individuals who have a passion, a vision and a vested interest in its future,” said Margret Kleinsman, general manager
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New York Body Shop Owner
Cleared of All Charges in Fraud Case fter a three-week trial, a jury of 12 Nassau County residents unanimously found Lorraine Pilitz, owner of Autotech Collision Inc. in Rockville Centre, N.Y., not guilty of all charges stemming from a 2009 auto accident in which Pilitz’s vehicle was rear-ended by a GEICO insured. The Nassau County District Attorney’s Office accused Pilitz and her towing and auto body shop of trying to receive extra funds from GEICO. Pilitz maintained her innocence, testifying at trial that she was only trying to obtain what she was entitled to under the law. The District Attorney Office’s key witness was Robert Hochberg, a GEICO claims supervisor who testified that in two separate phone calls, Pilitz stated she had paid applicable New York sales tax when she registered her car from her company’s name to her name and that she was seeking reimbursement from GEICO for that money, which totaled around $990. Hochberg further testified that he then checked with the DMV and found that no such tax had been paid, and reported that to the Nassau County District Attorney’s Office. At trial, however, Pilitz and her lawyer, Oscar Michelen of Cuomo, LLC in Mineola, N.Y., produced a tape recording of both conversations with Hochberg that showed Pilitz had never made any such attempt and that, in fact, Pilitz stated that she had not yet registered the vehicle in her name so that the sales Continued on pg. 66 tax would not apply.
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for AkzoNobel A&AC Americas. “The leaders we’re honoring with this prestigious award all share these qualities and are among the top tier of those who continue to make this a vital industry.” The MIW program was established in 1998, with the first awards being presented in 1999 by AkzoNobel to both recognize and promote the contributions of key leaders
representing a valuable resource pool for the collision repair industry. The MIW program also enables scholarships, administered through I-CAR, to be provided to deserving women seeking to advance their education and pursue career opportunities within the collision repair industry. Throughout MIW’s 14-year history, 69 women have received MIW awards.
(Left to right) AkzoNobel’s 2012 FIT Sustainability Honorees Carl and Marlo Vincenti of Oka’s Auto Body, Mike LeVasseur of Keenan Auto Body, and Mary Mahoney and Lee Broughton of Enterprise Rent-A-Car.
2012
NACE Don't Miss the MSO Symposium at NACE 2012! sold-out success in 2011, the MSO (Multiple-Shop Operator) Symposium provides high-end content to an exclusive group of high-end buyers.The symposium includes multiple networking opportunities for MSOs and access to all other ASRW events (show floor, educational conference and other key events). Registration is now available and is limited to qualified MSOs. Register today for this must-attend event! WHEN: Friday, Oct. 12 WHERE: Morial Convention Center, New Orleans, La. WHO: Shop owners with 2+ shops COST: $125 REGISTER: www.naceexpo.com
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Schedule: 8:30-8:45 a.m. – Welcome 8:45-9:45 a.m. – Developing a Sustainable Culture Facilitated by: Marcy Tieger, Symphony Advisors Guest Panelists: 䡲 Andrew C. Taylor, Chairman and CEO, Enterprise Holdings 䡲 Christine B. Taylor, Assistant Vice President, Enterprise Holdings 䡲 Pam Nicholson, President and COO, Enterprise Holdings 9:45-10:45 a.m. – Strategic Brand Development: Differentiate Through Innovation Facilitated by: David Lingham, IBIS Conference Director Guest Speaker: Sasha Strauss, Founder and CEO, Innovation Protocol; Professor, University of Southern California
10:45-11:15 a.m. – Break 11:15 a.m.-12:30 p.m. – Building Lasting Business Relationships Through Performance Facilitated by: Matthew Ohrnstein, Symphony Advisors Guest Panelists: 䡲 Bill Brower, Assistant Vice President and Manager, APD, Personal Market Claims, Liberty Mutual Insurance 䡲 Patrick Burnett, Assistant Vice President, Nationwide 䡲 Michelle Dereszynski, Assistant Vice President, APD National Operations and Strategy, Farmers Insurance 䡲 Susanna Gotsch, Director, Industry Analyst, CCC Information Services 䡲James Spears, Assistant Vice President, USAA 12:30-1:30 p.m. – Lunch 1:30-2:45 p.m. – What a Difference a Year Makes Facilitated by: Matthew Ohrnstein, Symphony Advisors Guest Panelists: 䡲 Chris Abraham, Service King Collision Centers, CEO 䡲 Brock Bulbuck, The Boyd Group, President and CEO 䡲 Steve Grimshaw, Caliber Collision Centers, CEO 䡲 Duane Rouse, ABRA Auto Body & Glass, CEO 2:45 p.m. – Break 3:15-4:30 p.m. – Show Me the Money: Private Equity’s View of the Collision Repair Industry Facilitated by: Rex Green, BB&T Capital Markets, Head of Consumer Group Guest Panelists: 䡲Warren Feldberg, Partner, Champlain Capital Partners, LP 䡲 Lorin Knell, Partner, KCB Management 䡲 Luis Zaldivar, Managing Director, Palladium Equity Partners 䡲 TBA, The Carlyle Group 䡲 Other(s) to be announced 4:30-4:45 p.m. – Closing Comments 4:45-7 p.m. – Networking Reception
September 2012
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Web Presence
Management Hunting for Web Traffic
in Huntington By Mark Claypool oe Doddridge, owner of East End Body Shop in Huntington, W. Va., admits he can’t get out of his own way sometimes. A second generation shop owner in his 30s, he digs deep into all facets of his business. He reads everything he can get his hands on that may help him run his shop, and he shares what he learns with staff. Yet his staff aren’t usually as excited as he his about change and new ideas. But this is common, according to Michael Gerber’s “The E-Myth Revisited.” Sometimes Doddridge gets bogged down in the details of things. This paralysis by analysis can slow progress – and it slowed down the process of building East End’s new website, too.
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Time to Change » About a year ago, Doddridge decided it was time for a new website. The first, from the early 2000s, was simply a picture of East End’s building, its address and phone number. The second version was created around five years ago. At that time, Doddridge wanted something simple and generic. The old site was doing okay in search rankings, but because it wasn’t lighting the world on fire, Doddridge decided he wanted to have a fresh, new, out-of-the-box look. Their developer did an analysis that revealed they were lagging behind in search rankings compared to their competitors. A new, fully optimized design
would address this issue and drive more traffic to his site.
New Design » The process of designing the new site began. Doddridge told his developer what he wanted. Designs were created and submitted for review and, hopefully, approval. “The pitfall is having a vision of the website and then getting bogged down in the process,” he said. “I wish I had just turned it over to the professionals so the process would move along.” As a result, it took nearly a year to complete, but finally www.eastendbodyshop.com was reborn.They hit upon a new design, something radically different and non-traditional for a body shop website. Everyone loved it, so the design was converted to XHTML, the programming language many developers use for website development. The website is also built in WordPress so the East End team can easily update it on their own.
East End Body Shop’s old website (left) was generic looking. The new site (above), with the look of a leather bound notebook, is radically different from other body shop websites.
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»| Web Presence|« Doddridge’s team submitted content suggestions, and the site came together. The new design has the look and feel of a leather notebook and is superimposed over a schematic. The navigation buttons are like notebook page tabs. The calls to action are on the upper left side of the notebook: “Request an Estimate,” a status update, “Make an Appointment” and Facebook and Twitter links. Below that is the “Get in Touch With Us” section. These calls to action help get visitors to do something once they land on the site.
Professional Image » Once
employment tab. Our employees were excited to see the new website up and online. Everybody I talked to in the shop gave us positive feedback on the look.” The site has been live long enough that search engines are now indexing it and ranking it. East End’s rankings are way up in Huntington and in their surrounding towns, and they have lots of “page ones” and many “position ones.” Their next move is to set up a Google+ account to help boost their Google rankings a bit more. Read more about this in next month’s column.
Doddridge stepped aside, the development moved rather quickly. “It came down to wanting to project a professional image in the market as a collision repair shop,” he says. “Our industry doesn’t have the cleanest image, so we wanted to project that. I really like the interactive features and our value propositions on the site. I think it’s a good look, has some really cool features on it like ‘Request an Estimate,’ the CCC repair update system we use and the
Enhanced Rankings » Enhanced rankings means more people are finding East End. Google Analytics tells us that they’re getting as much of 77 percent of their website traffic from searches, meaning people are indeed finding them. It’s no surprise when you look at their enhanced rankings. People are viewing more than three pages per visit, compared to the industry average of 1.7 pages. The average time on the site went from less than a minute to
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nearly three and a half. That’s quality traffic! So, the hunt for website visitors in Huntington bagged a trophy…quality traffic and more cars to fix. BSB BSB Contributing Editor Mark Claypool has nearly 30 years of experience in workforce development, business/education partnerships, apprenticeships andWeb presence management. He’s the CEO of Optima Automotive (optimaautomotive. com), which provides website design, development, search engine optimization (SEO) services and social media management services. He’s also the director of business development for Metro Paint Supplies in Chicago. His work history includes vice president of VeriFacts Automotive, founder of Mentors At Work (now a division of VeriFacts), executive director of the I-CAR Education Foundation and the NABC, co-founder of the Collision Industry Foundation and national director of development for SkillsUSA. He served, on a volunteer basis, as the SkillsUSAWorld Team Leader for the WorldSkills Championships.
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Tech
Tips
By Dan Espersen and Jeff Webster
Mystery Battery Draw Can Drain Your Productivity ow much time is wasted in your shop tracking down obscure problems and fixing them? A vehicle you repair that seems “good to go” can sometimes come back to haunt you with concerns that may or may not be related to the repair. Electronic and electrical systems can especially generate hard-to-diagnose problems. Factory information is the answer. In many cases, a factory technical service bulletin (TSB) has been published that provides a quick solution to a known defect or issue. Customers frequently come back, honestly believing that your repair is the cause of some new problem. But the problem may be a previously diagnosed “glitch” known to exist on a particular vehicle. Armed with OE information, you can protect your shop and generate additional revenue by fixing the problem – not to mention enhance your relationship with the customer. Here’s an excerpt from a TSB published by Toyota describing an electrical problem with some 2011 Sienna vans.
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Parts Information PREVIOUS P/N
CURRENT P/N
PART NAME
82641-08050 82641-08030 82641-08040 82641-08060
82641-08071 82641-08080 82641-08090 82641-08100
Relay, Integration Relay, Integration Relay, Integration Relay, Integration
Required Tools & Equipment » Manufacturer’s diagnostic scan equipment or suitable equivalent.
Applicable Warranty »
䡲 This repair is covered under the Toyota Comprehensive Warranty, which is in effect for 36 months or 36,000 miles, whichever occurs first, from the vehicle’s in-service date. 䡲 Warranty application is limited to occurrence of the specified condition described in this bulletin.
Condition » Some 2011 Sienna vehicles’ batteries may lose their charge overnight even though they were properly closed and locked with the interior lights turned off. In the event that a parasitic draw exceeding two amps is discovered and the A/C compressor clutch is confirmed to remain on with the ignition off, this bulletin provides a repair procedure involving circuit inspection and replacement of the integration relay.
Models » Certain 2011 Toyota Sienna vans produced before the production change effective VINs shown below. DRIVETRAIN
PRODUCTION CHANGE EFFECTIVE VIN
2WD
5TDKA3DC#BS008690 5TDZK3DC#BS162223 5TDKK3DC#BS162223 5TDXK3DC#BS162223 5TDYK3DC#BS162223
4WD
5TDJK3DC#BS027553 5TDDK3DC#BS027553
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Service Information » Always refer to ALLDATA Collision for safety procedures, identification of material types, recommended refinish materials, removal and installation procedures. Always refer to the manufacturer for questions relating to applicable or non-applicable warranty repair information. Inspection Procedure 1. Confirm the vehicle is produced before the VINs listed in the table to the left. 2. If an abnormally high parasitic draw of approximately two amps is confirmed with ignition key in the “OFF” position, proceed to Step 3. 3. With the ignition key in the “OFF” position, disconnect connector B41 and verify the A/C clutch Figure 1 – B41 connector audibly clicks “OFF.” If a click is heard, proceed to Step 4 (Figure 1). 4. From the front side of the connector, confirm battery voltage on A/C clutch B41 connector. If battery
QTY 1 1 1 1
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»| Tech Tips |« voltage is present, proceed to Step 5. 5. Replace Integration Relay.
Integration Relay Replacement 1. Release the black retaining tabs at the top of the relay using a pick or blade screwdriver (Figure 2).
Figure 2
2. Grasp and pull straight up on the integration relay after both tabs are released. 3. Release all three connectors at the bottom of the integration relay (Figure 3). Circle 22 for Reader Service
Figure 3
4. Connect all three connectors into the bottom of the new integration relay and push the relay assembly down into the junction block until both black tabs click into place. 5. Confirm normal compressor clutch on/off operation with engine running and A/C on, and with vehicle turned off. BSB Dan Espersen is ALLDATA’s senior collision program manager and holds an AA Degree in automotive technology. He has 46 years of experience in the automotive industry, including 19 in the collision industry. © 2012 ALLDATA LLC.All rights reserved.All technical information, images and specifications are from ALLDATA Collision S3500.ALLDATA is a registered trademark and ALLDATA Collision S3500 is a mark of ALLDATA LLC.Toyota and Sienna are registered trademarks of Toyota Motor Corporation and/or Toyota Motor Sales, U.S.A. All other marks are the property of their respective holders. Circle 99 for Reader Service
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COVER STORY
Consolidation The pace of consolidation has quickened within the last few years. What does it mean for the industry and the single-store independents that must compete with multiple-shop operators? By Curt Harler t seems that every single week now, one of the major multipleshop collision operators has acquired yet another store. It’s a buyer’s market, with declining accident frequency, higher costs and lower margins convincing some independents that the time to exit is now. Still, despite all the consolidation going on, the majority of shops in the industry are small, mom-and-pop single store operations. BodyShop Business’s 2011 Industry Profile report indicated that 91 percent of those polled own a single store. But insurers are increasingly preferring to do business with multiple-shop operators (MSOs) for multiple reasons: single point of contact, consistency of product, strong brand (market presence), the ability to offload DRP administration, strong KPI measuring systems, etc.
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Market Trends » Consolidation is not unique to the collision repair industry. A host of other industries, ranging from hometown funeral parlors to local banks that used to know everyone personally, are under pressure to consolidate. There are many reasons why it has accelerated in the body shop world. “Market growth is nearly flat, and projected growth will be anemic for the foreseeable future,” says Paul Gange, president and COO of Fix Auto USA, Anaheim Hills, Calif., a franchise that has network stores. He noted that while there are more licensed vehicles on the road today than in 1980, declining frequency translates to no real increase in the total number of repairable vehicles. “Margins are clearly not what they were a few decades ago, but the collision industry experience in that regard parallels that of other industries that have reached a state of maturity. The ability for a single operator or even regional MSOs to excel outside a network is becoming more challenging.” ABRA Auto Body & Glass of Brooklyn Center, Minn.,
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is one of the operations that has been aggressively growing its footprint across the U.S. It has gone from 92 stores in 2006 to 124 in 2012. Says Duane A. Rouse, president and CEO of ABRA, “The industry has been fragmented and is in an overcapacity situation. Since the industry itself isn’t growing quickly, the better operators are taking market share from the marginal operators.” Fix Auto President and COO Paul Gange: “The ability for a single operator or even regional MSO to excel outside a network is becoming more challenging.”
COVER STORY » Consolidation
to fill,” says Caliber President and CEO Steve Grimshaw. “This fact, coupled with flat-to-declining claims, higher expectations of customers, increased competition among insurance clients and the increased complexity of vehicles, made it a ripe market for consolidation.” Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), views consolidation as a double-edged sword for single-store owners. “Future prospects for single-location shops are fraught with significant challenges, regardless of consolidation,” says Schulenburg. “But competing in heavily consolidated markets has both advantages and disadvantages.” Schulenburg feels that consolidation spurred by MSO/franchise growth in a market is similar to the commoditization bred by chains entering into a marketplace. “For independent single-location businesses to be able to compete, they’re going to have to define their audience and target them in a much more direct and specific way.” David Byers, CEO of CARSTAR, Kansas City, Mo., says he expects to add 30 to 50 new stores in North America each year for the foreseeable future. He has a good sales pitch to independents, offering them group buying power, education, training and a relationship with insurance companies. “There is a squeeze on profitability everywhere,” Byers says. “Small players typically don’t have the same financial controls as MSOs. There is a need for capital improvement. And insurance carriers are aligning themselves with MSOs.”
Room for Everyone » If anyone believes that the independent
Caliber Collision of Lewisville, Texas, has had pretty much the same growth rate in a six-year time period as ABRA, going by number of stores added in the last six years. It has gone from 68 stores in 2006 to 106 in 2012. “Like many industries, the collision industry, which is dominated by small, independent shops, found itself with much more capacity than vehicles Caliber President and CEO Steve Grimshaw: “The shops that thrive during this consolidation will deliver better operating metrics and customer focus than those that don’t.”
shop will one day be extinct, they should quit their worrying, according to John Mosley, owner of Clinton Body Shop, Clinton, Miss. “There definitely is room for the independent,” says Mosley. “It depends on how you structure your business. Independents are not going away. If you build a relationship and do a good job, the customer will come back to you regardless of what choices the insurance companies give them.” Says Marcy Tieger, principal with Symphony Advisors, “There will always be a place for small, independent businesses, even with industry consolidation.” Tieger says small business owners often forge strong bonds in their communities, and their “independence” can be a selling point to consumers. CARSTAR’s Byers believes it will be a long time before independents are gone, but the day will definitely come. “There are 37,000 independents.We are the biggest MSO with 400 stores. It will be years and years before the independents are gone. However, I think the move to MSOs will rapidly accelerate.” At the moment, no MSO has complete national coverage. But that day might not be far off. “It used to be if you had five locations, you were a big guy,” says collision repair industry veteran Jim Keller. “Now you’re a large player only if you have 100plus stores. Keller is founder and president of the recently created 1Collision Network in Milwaukee, aimed at helping independents in Wisconsin and Illinois by offering an alternative to MSOs. “The big difference with us is that we are not buySeptember 2012
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COVER STORY » Consolidation
SCRS Executive Director Aaron Schulenburg: “Single-location shops face challenges regardless of consolidation.”
CARSTAR CEO David Byers: “There is a squeeze on profitability everywhere.”
ing you. You maintain ownership of your business but become part of a name brand,” Keller says. He compares the 1Collision brand to True-Value hardware
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Symphony Advisors Principal Marcy Tieger: “There will always be a place for small, independent businesses.”
stores which keep the owner’s name but add a logo. In this case, the logo is a large, red numeral one. The 1Collision brand will start in Wiscon-
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Body Group CEO Brock Bulbuck: “The MSO model has been proven to deliver on key performance metrics.”
sin, Illinois and Iowa and branch into Minnesota, Indiana, Michigan, Ohio and Missouri. Keller says it will, for the near future, remain a Midwest brand.
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COVER STORY » Consolidation
“Future prospects for single-location shops are fraught with significant challenges – regardless of consolidation.” — Aaron Schulenburg, executive director, SCRS
Measuring Performance » The one thing MSOs have over single-stores, says Brock Bulbuck, president & CEO of the Boyd Group Inc. (Gerber Collision & Glass), is a proven system to measure performance. “The MSO collision model has been proven to deliver on key performance metrics (KPMs),” says Bulbuck. He admits that 15 years ago, not all MSOs delivered on the promise of better KPMs. “But today, MSOs do,” he says. Service King’s Bonner also believes KPI measuring favors consolidated operations. “It’s difficult for an independent to offer reporting on a live, 24/7 basis,” Bonner says. For any shop owner, measuring CSI, cycle time, touch time, etc., can range from a necessary evil to a fun part of the business. Johnny Mock, owner of Johnny Mock’s Auto Body Shop, Pittsburgh, Pa., readily admits he loves metrics and benchmarks. However, he indicates insurance companies go overboard with them. “Insurance companies today have created a monster for us with dealing with customers,” he says. Mock says his customers feel some KPI requirements are overkill. He cringes at the idea of twice-a-day updates given every time a car moves from one station to another. “Most customers want to know when the job is done,” Mock says. “Others give a CSI that you didn’t communicate enough. I can have an hour per car per week just in phone calls.” As a larger shop with a good contingency of support personnel, he can handle that. And, with their volume, even a couple of dingers a month don’t hurt his statistics too much. He feels sorry for the shop that does 10 cars a month and has two or three customers complain about communications.They could have a 30 percent “dissatisfied” rating. Consolidation Regions » There are places where there still is little or no pressure to join a franchise or marketing group. “We have no consolidators or MSOs in Vermont,” says Mike Parker, Parker’s Classic Auto Works, Rutland. “I do feel that consolidators and MSOs are not in the best interest of a family-owned shop like ours.” While Parker is out of the war zone in Vermont, there’s a storm brewing in huge metropolitan areas. Mock thinks Parker’s story is typical. He believes that consolidation will take place most quickly in the heavily urbanized areas where economies of scale can be realized quickly. “If you’re in a highly populated area, you’ll see more consolidation. In rural areas where population is thinner, you’ll see less,” he says.
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COVER STORY » Consolidation buck says, “The advantages economies of scale provide include management expertise and central service opportunities.We can add enhancements to our value proposition that are not possible at a single location.” According to ABRA’s Rouse, MSOs appear to be taking more market share. Independents face the challenge of attaining the amount of investment in equipment, training, technology, etc., necessary to remain competitive. Mock admits there are challenges, but he finds it fun to overcome them. “If you’re an entrepreneur and really want to run your business and control your own destiny, [being independent] is the way to do it,” Mock says. “Yes, it is frustrating. It is challenging, but I love the logistics and figuring the metrics to be successful.” Mock knows whereof he speaks. For many years, his was a CARSTAR shop. “I backed out of it,” he says, noting that he wanted to run his own show.Today, with his son Jason a year or two from taking over the business, Mock is determined to stay independent.
Gerber Collision & Glass has been growing aggressively since 2006, from 46 stores to 151.
There, where a shop or two can dominate a small market, MSOs will have a tougher time achieving the numbers required for their business model. “MSOs will be choosy about where they locate.” Addressing economies of scale, Boyd’s Bul-
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COVER STORY » Consolidation Who Will Be the Victors? » Service King’s Bonner believes there will be a major shake-out in the next 12 months or so. Service King, with 45 shops across Texas, is the largest MSO in the state and third largest in the U.S. It was acquired by the Carlyle Group, a $159 billion asset group, in late July. Bonner moved up from CEO to chairman, and founder Eddie Lennox retained an ownership stake. “The trend is for consolidation,” she says. “The biggest question is, who will be the successful consolidator? Who has the resources – the financial partners – and who has the ability to attract the most profitable independents?” She sees room in the game for several, but not many, victors to emerge. This is not the first time the collision industry has seen consolidation. The first wave occurred during the late 1990s. “During the first wave, we saw growth in companies without infrastructure, standard operating procedures and robust management systems in place that enabled MSOs to operate effectively as one enterprise,” says Marcy Tieger, principal with Symphony Ad-
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Do-It-Yourself DRPs in Mississippi
I
ndependents are missing a golden opportunity by not taking a “do it yourself” approach to providing service guarantees, say some Mississippi body shop owners. They’re taking the bull by the horns. “A lot of associations are missing the boat by not offering guarantees,” says John Mosley, owner of Clinton Body Shop. He’s one of several shop owners reviving the nascent Mississippi Collision Repair Association. One of their key goals is to compete with the insurance company and MSO multi-shop guarantees of customer satisfaction. The goal will be to have a logo for every member of the MCRA. If you don’t like the work at one shop, or if you have a problem with a repair in a distant city, all other MCRA members will back it up. In addition, they’ll promote ICAR training and other programs to all of their members. This will allow any independent to get big-name certification as part of a local group of independents. MCRA had an electronic billboard on I-55 near Jackson that already has garnered a lot of comment and interest. “The best thing is MCRA will be 100-percent customer-oriented,” Mosley says. “We will work for the customer, not the insurance company.” Although he admits it is an interesting option, this tactic does not worry a MSO operator like CARSTAR’s David Byers. “I don’t think it’s viable for the long-term,” he says. “The purpose of associations is more to lobby for the body shop owner.”
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COVER STORY » Consolidation visors, Irvine, Calif. Some of those MSOs are no longer around, she says. “The ones who are still here would likely tell you that they’re doing things differently during this wave of consolidation.” CARSTAR’s Byers says the victors will be those who get the most insurance work. Of course, he feels that MSOs – with better KPIs (key performance indicators) and more training – will lead the way. Gerber’s size has allowed it to take on responsibility of DRP oversight for its own shops. “Insurers don’t have to spend infrastructure and money investing in that oversight,” Bulbuck says. “It’s another economy of scale.” The independent Mosley has no time for DRPs. In fact, he kept his shop out of State Farm’s program for five years (they’re on Select Service and he now participates in three DRPs). “Instead of putting your business out there with good advertising and building a customer base, shops went to DRP programs,” Mosley says. He thinks this was a huge strategic mistake. And, he is one of several shop owners in
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MSO # of Shops – 2006 vs. 2012 151* 2006 126
2012 106
92
68
64
63 50
46* 33
ABRA
Caliber
29
Collision Revision
*U.S. stores
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20 Sterling
Boyd
Service King
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COVER STORY » Consolidation Mississippi looking to change that (see sidebar on pg. 32).
purchasing power, success is based on an individual shop being able to satisfy customers within a 5- to 10-mile radius. It is a local business.This ensures independent shops will have a strong presence in this industry for a long time to come.”
etc., small business can play on the very positive aspects that make a locally owned and operated business unique to the community. A Different Consumer » The conIt also may allow for those businesses to harsumer of today is different, too. Fix Auto’s ness the ability to become more of a specialGange calls them “professional” consumers of ized business, rather than a ‘general goods and services. practitioner,’ further provid“A consumer’s exdistinctions that create an “Those who believe the right time to sell is ing pectations are shaped by appealing value proposition. their experience at the This is also where taking adnow local Starbucks or other vantage of finding other conbefore the value service encounters,” he sumer-oriented automotive says. “They, in turn, imservice offerings (such as the diminishes,” plicitly anticipate insurthings that might be found at ers meeting expect- — Brock Bulbuck, president & CEO, The Boyd Group Inc. the SEMA Show) can bolster ations that have been return consumer business shaped by their retail experience – for Grimshaw sees the industry adapting and through an ongoing relationship that keeps speed, quality and best price, defying the buying groups or franchising, giving independ- you connected to your customer base between value triangle. ent shops more power to gain access to clients collision losses.” “Insurers spend billions of dollars on ad- and improved purchasing power versus what vertising, and the requirements for surpassing they have today. Big Attention » While losing one’s customer expectations continue to escalate – Schulenburg agrees that there will always “independence” might seem like a sad occaand perhaps unfortunately, at the same time be a place for small, independent shops as sion, there are numerous positives for joinconsumer demand for better products and many consumers prefer them over big chains. ing an MSO. Perhaps the biggest factor is differentiated services also continues to evolve “There is a large population of consumers training on the latest in paints and technoland increase.” who would prefer to do business with small, ogy. Big guys get big attention from vendors. Says Caliber’s Grimshaw, “Although scale local businesses,” Schulenburg says. “While Vendors insist the little guys are important, brings an ability to invest in training, equip- larger organizations can market their service too. They are, of course, but given the choice ment and technology, and certainly improves based on size/presence/national guarantee, of making a sales call to a person represent-
will be able to get the value of the business
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COVER STORY » Consolidation ing 100 shops or two shops, where are you going to go first? A shop owner who wants to “crystallize value,” as Bulbuck puts it, but still remain on the management team may opt to go the MSO route. “Those who believe the right time to sell is now will be able to get the value of the business before the value diminishes,” he says. “Others want to create a career opportunity for themselves.” Says ABRA’s Rouse, “Since the independent is typically selling their business, we let them know that our culture and commitment to the industry will greatly benefit their employees who will continue with the business after the owner leaves. For those who want to continue to own their business, ABRA’s franchise program offers proven operations processes, national purchasing power, ongoing training and recruiting support, as well as marketing and advertising support.” Chains enforce standards and guarantees, which benefits both the customer and the shop owner. CARSTAR customers know that, should something go wrong, their
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guarantees will follow them from shop to shop. That’s also part of the benefit of an outfit like 1Collision. It offers marketing planning and support services, e-Marketplace software, a performance management system to track KPIs, a single point of contact with insurance companies, and educational and training programs in tandem with strategic partners. Members of MSOs receive ongoing support to increase traffic, enhance insurance relationships and to be the “best in class” in their marketplace, 1Collision’s Keller says. The group charges a flat, monthly fee for membership and extra depending on the scope of marketing. For example, one body shop in Chicago hardly can afford $5,000 a month for a billboard. But 10 branded independents probably can spend $500 each to get the word out. Training, infrastructure, specialized management techniques and pooled advertising are among the benefits Bulbuck sees. “This helps us increase our customer-pay sales as well as direct repair sales,” he explains. Gerber has a centralized call center and a
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centralized estimate desk that puts a second set of eyes on damage estimates that are written at the shop level. “Essentially, we’re doing some of the checking that was done by insurance companies under DRPs,” Bulbuck says. Even the wider economy has an impact. “With people choosing not to repair their damaged vehicles for economic reasons, fewer miles driven and accident avoidance technology, among other factors, there are simply fewer cars to repair and fiercer competition for those cars,” Tieger explains. “Combine that with the growth of large-scale MSOs and the enhanced relationships MSOs are able to develop with insurers, and smaller shops have to work that much harder to maintain or growth their market share.”
Insurance Impact » Many independents point fingers at insurers for driving them to the wall. CARSTAR’s Byers has no doubt that insurance companies would rather deal with a MSO than an independent. “Insurance companies are looking for fewer shops on their lists,” he says. “What are the downstream implications of that? From the
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COVER STORY » Consolidation insurance company perspective, the MSO is the way to go.” On the drive to consolidation, insurers certainly provide the fuel. “One of the interesting things is how quickly the insurance carriers are moving to the MSO model,” Byers says. Adds Caliber’s Grimshaw, “Insurance companies are looking at reams of research on how to increase their customer’s overall satis-
faction while optimizing customer policy retention and minimizing customer churn.” Grimshaw points to J.D. Power & Associate research in 2010 (see chart) that demonstrates greater customer satisfaction results in less “switchers” and customers who “will shop in the next 12 months.” “One of the drivers for this wave of consolidation is the influence of insurance com-
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panies that are looking to contain cost and are demanding superior performance in areas like cycle time and customer service,” Tieger says. This requires the ability to make a financial commitment on things like training and equipment or a common technology platform with capability to interface with an insurer’s systems. “The bottom line is that keeping all these balls in the air can be much harder for a small business than it can be for a larger enterprise that may have people devoted exclusively to key areas such as IT, training and HR,” Tieger says. “One other consolidation driver has been the renewed interest of the financial community, which has been willing to invest in well-run companies, which has resulted in MSO growth.” Mock credits, or blames, that move on the number of consultants – many ex-shop owners – who gather information to develop numbers on profitability. “They tell the insurance companies…then the insurance companies tell us we make too much money,” says Mock. “What gives them the right to tell me how much money I can make if I’m charging a fair rate on a job?” “The shops that are achieving the most success in working with carriers are those that are able to offer a product to the carriers which delivers on quality and customer satisfaction, while also creating a more efficient business model for claims administration,” Gagne says. Bonner says she believes the insurers are being driven by customers to offer service alternatives throughout their region. “Insurers want to advise customers that they have a shop close to them,” she explains. A MSO is more likely to have a repair bay near the customer’s home, office or school than a single-site operator. “It’s the customer that’s driving it in this instance,” Bonner says. Tieger agrees. “We believe the repairers who will best be able to compete in this environment will be MSOs that have multiple, consumer-oriented locations with geographic concentration, highly-trained technical, managerial and administrative staff, load leveling capabilities, high customer satisfaction, a common technology platform with capability to interface with an insurer’s systems, and centralized estimate review and audit capabilities, among other attributes,” she says. Those topperforming repairers must be willing to commit to a service level agreement and KPI guarantees with economic penalties and rewards, she adds. Warranties boost satisfaction. CARSTAR’s
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COVER STORY » Consolidation Byers notes that most MSOs offer regional or nationwide warranties. “People have one accident every 6.7 years,” he points out. “People move just about that often, too.” This gives the consumer a sense of wellbeing, Byers argues. “The consumer doesn’t care about the ownership structure. He cares about the brand. It’s just like any other retail storefront brand. When the consumer has an accident and needs help, they know a trusted brand like CARSTAR.” Rouse says he thinks there will always be room for well-run businesses in this industry, regardless of the size. “If you own your own business, you’re in control of your own destiny, and you call all the shots,” he says. Mosley would respectfully disagree. “This (consolidation) is absolutely insurance company-driven,” he says. He winces at programs like State Farm’s PartsTrader for parts bidding. Others take the approach of selling the value of each independent’s metrics to the insurance agencies. Part of 1Collision’s marketing is making insurance agent calls. “We want to build a relationship with the insurance in-
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dustry, local insurance agents and our independent members,” Keller says. “We want to show what shops have to offer and their performance statistics.” Right now, one independent has the opposite problem. Mock’s area just experienced a massive hail storm and business is good. However, he has multiple steps to take before the insurance companies will approve a job. “The insurance company is beating the snot out of us,” he says. “They want to know how many ounces of clearcoat per panel you’re spraying.” “We maximize DRP conversions,” Bulbuck says. Insurers recommend DRP to their customers and want their customers to use a DRP shop.With a large advertising and storefront presence, MSOs can help insurers meet that goal. With 150 locations in 14 states and 40 shops in the Chicagoland area alone, customers come to know the brand name. “Companies with top-of-mind awareness help increase the DRP rate,” Bulbuck says. He says this branding helps improve the consumer’s comfort zone since they have a topof-mind name for trustworthy collision repair.
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“The customer is the ultimate winner in this,” Grimshaw says. “The shops that thrive during this consolidation will deliver better operating metrics and customer focus than those that don’t. They will also be equipped with the best trained employees, have access to the best equipment, and have management systems and processes that ensure operational consistency in every location.” On top of that, Grimshaw says customers will be confident their cars were repaired to pre-accident condition and all customer service expectations were met. “Not all consumers buy goods at Wal-Mart,” Gange says. “The same is true for insurers. Value is defined differently. For some, loss costs are critical, while for others, customer service is the primary metric. However, all insurers embrace the need for effectively managing their budget and service experience, which is best understood in terms of L&AE and their respective service experience.”
Not the End » Despite all of the expectations and competition, independents don’ need to throw in the towel.
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COVER STORY » Consolidation “There always will be room for the good independent,” Bonner says. “There is a certain customer who likes to do business with an independent.The independent might be located close to the customer.” Mosley opened a second shop about a 25minute drive from the first in order to capture those other customers. He knows there are other areas where he could place a shop that would cut that customer’s travel time even more. Groups that focus on customer service, invest in training and equipment required to fix today’s increasingly complex vehicles, and invest in systems and processes required to drive consistent operational performance will be the consolidators of the future, Grimshaw says. Mock’s secret sauce is to limit the amount of business he gets from any one company. “I don’t like to see any one insurance company over 13 percent of my business,” he says. Meantime, his percentage of customer-pay jobs is increasing. “We’re insurance friendly here,” Mock insists. “We try to work with them. But you can’t kowtow to them all the time. You have
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to be willing to say when things are not working out. I just ask the insurance companies one thing: Let me make some money and I can take care of your customers for you. If you’re not staying on top of your numbers, too much falls through the cracks.” “The problem really is for the many repair facilities that are unwilling or unable to look at or accept the need to find new ways to define their value proposition other than ‘we do quality work’ slogans,” Schulenburg says.
One Big MSO? » Will everyone eventually become part of a MSO? “Never say never,” says Gange. The likely scenario for metro areas, he believes, is a small operator occupying a market niche based on location, technology skills or a specific certification/ vehicle manufacturer. “Growth-oriented operators who want to stay in the business will value a relationship in which they can access the infrastructure of a large, multi-store network that understands how to drive performance, which is the vehicle for continuing to expand their operations,” Gange says.
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In addition to all the other factors, Bulbuck highlights the advantages of economic scale as a plus for MSOs in the collision business. “Because of the traction of consolidation, you see financial capital being attracted to the industry, whether through a public capital structure like ours or private equity capital like we saw with Carlyle Group’s acquisition of Service King (in 2012) or OnCap’s acquisition of Caliber Collision Centers (in 2008).” Grimshaw says such purchases show that the buyer believes Caliber is a well-run organization, has a No. 1 or No. 2 position in every market its operates, and is well-positioned to grow both organically and via acquisition. Does this mean the MBAs and CPAs will take over the industry? “All of economics is run by them,” Bonner chuckles. BSB Curt Harler is a Cleveland-based freelance writer specializing in the automotive, technology and environmental areas. He’s the recipient of the International Communications Association Industry Achievement award for his writing.You can reach him at curt@curtharler.com.
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Track Talk Les Is More: Roush Fenway’s Ebert Conditions Crews to Better Performance Now a strength coach in a sport that piles up checkered flags instead of touchdown catches, Les Ebert leans on his background of training pro football athletes to strengthen today’s awardwinning NASCAR pit crews. “These guys are the unsung heroes,” Ebert said of NASCAR pit crewmen. “They’re like offensive linemen in the NFL – they do all the dirty work.” Ebert, a 39-year-old native of Circle Pines, Minn., is in his fourth season as the strength and conditioning coach for Roush Fenway Racing, includ-
2012
NASCAR Race Schedules
NASCAR Sprint Cup Series
Good Sam Roadside Assistance 500 Oct. 7 Bank of America 500 Oct. 13 Hollywood Casino 500 Oct. 21 Tums Fast Relief 500 Oct. 28
ing the No. 17 team, which recently won the second-quarter Mechanix Wear Most Valuable Pit Crew Award. It’s an honor voted on quarterly by each NASCAR Sprint Cup Series crew chief with an overall year-end award going to the season’s top-performing pit crew. “Pit crews work really hard to do the things they do,” said Ebert. “Yes, they have a lot of athletic ability, but to be able to do that repetitively in practice, race-after-race, month-aftermonth, they have to be in great physical condition.” Ebert knows positions can be gained – or lost – in a matter of seconds in the pits. His role at Roush Fenway is crucial in strengthening some 70-plus pit crew members so they can thrive physically on pit road. “We run through workouts four days a week,” explained Ebert. “We do two total body strengthening workouts and two conditioning workouts Monday through Thursday. We’re really fortunate – we
have the tools we need to get these guys in the best shape possible.” Known to insiders as “Les’ House of Pain,” the Roush Fenway Racing gym that Ebert oversees is a real “pumpatorium” packed full of free weights, exercise machines and equipment to keep pit crewmen conditioned and durable over the 36-week grind. “Les keeps us in shape, which is really important with the long season and hot weather,” said Cameron Cobb, jackman on Matt Kenseth’s No. 17 Best Buy Ford. “Ever since Les came on board, I have less aches and pains from doing my job. Now, Les has given me a few aches, but it’s what you need to win.” “Les pushes us pretty hard with our training,” echoed Sean Ward, gasman on the No. 17. “Les expects a lot, but it’s worth it. The workouts help keep us in shape and prevent us from getting injured.” Not long after graduating from the University of Minnesota-Duluth with a degree in physical education,
From the gridiron to pit road: Les Ebert spent nine years as a NFL strength coach before joining Roush Fenway Racing in 2008.
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Dollar General 300 Miles of Courage Kansas Lottery 300
Oct. 12 Oct. 20
NASCAR Camping World Truck Series
Fred’s 250 powered by Coca-Cola Oct. 6 Kroger 200 Oct. 27
Les Ebert's program has helped put Matt Kenseth's pit crew at the top of the sport.
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Ebert landed an internship in the NFL under coach Tony Dungy. He spent three years as an assistant strength coach with the Tampa Bay Buccaneers, then six years with the Jacksonville Jaguars. When the job at Roush Fenway became available while Ebert was still working in the NFL, he thought, “Well, I’ll give it try.” Four seasons later, Ebert’s top-notch program is helping produce award-winning pit crews like the No. 17. “The 17 group is a talented bunch of guys who have been doing this for a while,” said Ebert. “They have good camaraderie and they work really hard, and that allows them to perform at a very high level under pressure.” In addition to Cobb and Ward, crew chief Jimmy Fennig’s over-the-wall pit crew consists of Justin Nottestad (front tire changer), Collin Pasi (front tire carrier), Jon Moore (rear tire changer) and Ryan McCray (rear tire carrier). Andy Ward is the team’s pit crew coach. “We’re very fortunate to have guys at Roush Fenway who can perform at a high-level, whether it’s in practice or in a race,” Ebert said. “It’s an honor and a blessing to be here.” By Kimberly Hyde, NASCAR
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TECHNICAL
The
Evolution of Paint From the by-product of a bug to today’s environmentally friendly refinishes, auto paint has had a long and fascinating history. By Carl Wilson ooking at past auto paint trends with the benefit of hindsight, the logic and genius as well as the folly of some is revealed. Predicting future trends is difficult, yet somewhat possible if we consider the causes driving changes in our industry: free market innovations, government regulation, a marriage of the two, and unforeseen advantages and disadvantages that perpetuate innovation.
L
Buggin’ Out » In the
Spraying during the “alkyd enamel” days. (Photo courtesy of The Ford Motor Company)
brushed on. Hence, the debut of the spray gun in the automotive industry around 1924. The creation of the spray gun is universally credited to Dr. DeVilbiss in the mid1880s. His device was initially created to atomize medicine for application in the throat and mouth. Regardless of the atomizer’s intended use, it revolutionized automotive painting, and thus allowed for future developments such as colors with suspended effects like metallics, which were previously unattainable with brush-applied paint. It’s an innovation that gave birth to
beginning, cars were painted at the factory with shellac-based paint applied with a brush. Shellac has been around for thousands of years and is derived from the resinous secretion of the lac insect found primarily in the Far East. It isn’t particularly durable, and it gave way to nitrocellulose lacquer in the 1920s, which is derived from plants. However, while lacquer increased production due to its faster drying properties, it didn’t lend itself to being
The Evolution of Paint
automotive spray gun
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polyurethane enamel
basecoat/ clearcoat basecoat colors with less than 3.5 lb./VOC
2000s
1990s
waterborne 1980s
1970s
1960s
1950s
1940s
1930s
1910s
1920s
alkyd enamel
shellac
acrylic enamel
acrylic lacquer
nitrocellulose lacquer
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TECHNICAL » Evolution of Paint custom colors and multi-stage paints, which continue today. 1930s » We saw alkyd enamels come to use in the 1930s. Still a product derived from organic compounds, the glycerin used in its manufacture was derived mainly from animal and vegetable fats. This enamel brought increased durability and gloss, as well as a wider range of colors. However, the slower drying time hindered production.
Again, the free market drove innovation, and acrylic lacquer was developed following World War II. Acrylic lacquer was a thermoplastic material that could be reflowed at high temperature, adding depth and gloss to the factory finish. Furthermore, it brought speed and even more color possibilities to us. We don’t know the name of the insightful painter who first swept up metal shavings, put them
in his paint gun and thought to himself, “Crazy…but I’m gonna try it,” giving birth to metallics. We also don’t know when he did it. But we do know that paint manufacturers recognized the trend, and metallics were introduced in the 1960s.
Acrylic Resins » Further innovation brought acrylic resins to enamels, and acrylic enamel hit the scene, a thermoset material that can’t be reflowed with heat. Like lacquer, it dries through evaporation, but it also dries through oxidation of the resin. Whereas lacquer is a film, enamel is a coating. At some point, a chemist figured out how to make it more durable by adding a catalyst or hardener. This modified acrylic enamel was the bridge to urethane and polyurethane enamels. But catalyzed products yielded another heretofore unknown: isocyanates, a tasteless, odorless, colorless gas that affects your central nervous system and is cumulative. That is, it doesn’t dissipate. You retain whatever you absorb until you’ve absorbed all your body can handle, at which point you’re done painting. Prevention is the key here, and since about 1987, all paint manufacturers have recommended a fresh air system.
EPA and OSHA » All along, these trends have been driven by the free market in a quest for increased profitability, durability and production. However, in the 1970s, the Environmental Protection Agency (EPA) and the Occupational Safety & Health Administration (OSHA) were created, and our awareness of the environment and personal safety rose as well as regulations that spurred further innovations. As a result of lead being phased out of paints, colors became transparent and coverage suffered.We saw a new trend with colored sealers or sealers that matched the value of the color with gray tones. The paint that pinstripers use today is a specialty coating that still contains lead, which is why a single brush stroke will cover. C.A.F.E. » C.A.F.E. (corporate average fuel economy) standards requiring better fuel efficiency, as administered by the National Highway Traffic and Safety Administration (NHTSA), have resulted in OEMs using more plastic on cars. This was a trend that really challenged us early on, but the “plastic dragon” has now been slayed. First, there were many different plastics, and they didn’t necessarily have the same reCircle 52 for Reader Service
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TECHNICAL » Evolution of Paint finish approach. There was thermoset polyester, polyethylene, polypropylene, thermoplastic, thermoset polyurethane, ethylene/propylene, etc. They each had their own symbol: UP, PE, PP, TRU, PUR, PVC, TEO, etc. These days, the symbol is generally on the plastic somewhere, but there was a day when you had to identify it with a grind or burn test. Once identified, you had to pursue the proper repair/refinish procedure. And we hadn’t even heard of mold release agents, let alone how to remove them. It’s a simple process now: properly clean/scuff it, use an adhesion promoter according to the particular paint manufacturer’s direction, and viola! Except now there is static electricity in the plastic to deal with. Innovation solved that problem, too, with static-eliminating wipes and sprays.Yet there are different rates of solvent evaporation between plastic and steel due to the cooling effect of evaporation. Therefore, there are different dry rates due to the different substrate temperatures, which results in different metallic/mica orientation between the two.We’re still battling that one.
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1980s » The ’80s brought basecoat/ clearcoat into the mainstream, though initially the clears lacked the solids necessary for UV protection. Thus, we learned a new phrase: clearcoat degradation. There was also some waterborne use going on at the OEM level, but all we saw in the field was some primer/ filler.
Stricter, tougher state regulations brought even more changes. Rule 1151 in Southern California required us to use heavy-bodied, high solids clears with less volatile organic compounds (VOCs). About this time, we also learned that our existing spray guns didn’t deliver the transfer
Masking with newspapers? You gotta love the old days. (Photo courtesy of The Ford Motor Company)
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TECHNICAL » Paint efficiency required by the state, and thus we were introduced to HVLP, or high-volume low-pressure. This had been around for decades, but not in our industry. Most of the new equipment we got our hands on was simply existing equipment that had been modified. Gravity-fed guns came into their own here. That was another hurdle that has since been cleared, but back then, in production, it felt like “the proving grounds.” As lower VOC requirements gained traction, it’s easy to see now that waterborne was where we were headed. Most of the VOCs in the basecoat/clearcoat system came from the color, which was predominantly solvents. Waterborne basecoat was a logical step.
Waterborne » With waterborne, we
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have a need for cleaner air. In most cases, grade “D” air, which is water and oil free and not less than 19.5 percent oxygen, is desired. This is a breathable grade of air when used in conjunction with the proper paint protection equipment. New air compressors or, at a minimum, multi-stage filtration systems will be going into shops to accommodate this requirement. We no longer have temperature-specific solvents to accommodate 90 degrees or 60 degrees ambient temperature. There is no “fast” or “slow” water we can add; as a result, we have new innovations of spraybooths, both at the manufacturer level and the “in-field retrofit” level. To maintain production, the booth needs to remain clean and isolated, yet include disruptions of the airflow pattern to facilitate a rapid rate of basecoat evaporation. There is even a pulsating airflow system for increased surface tension disruptions. Another benefit of waterborne is increased consistency of color application, resulting in better color match and improved color decks from the paint manufacturers.This lends itself for parts to be painted off the car, avoiding the traditional “jambing” of parts, thus improving cycle time. It’s a safe bet that future trends will continue to be driven by regulations for lower emissions as well as increased efficiency. How the free market accommodates that is yet to be revealed. BSB Carl Wilson has been painting for nearly 30 years, with formal training from the GM Training Center, ASE, I-CAR and multiple product and color courses. He currently works as a painter at RPMS Auto Body & Paint in Kailua, Hawaii. He can be reached at wilsonhuntnfish@hotmail.com.
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Who dat say dey gonna be at the 30th annual NACE? Only all of your collision repairer friends looking for the latest training, technology and networking opportunities. By Jason Stahl and Gina Kuzmick
umbo. Crawfish. Beignets. Zydeco music. Beads. Mardi Gras. These are some of the things that come to mind when you think about New Orleans, or “N’awlins” as the locals call it. Not pronouncing it “N’awlins” would label you an outsider as much as saying “Ore-GON” instead of “Ore-GIN,” or “LOU-EE-ville” instead of “LOO-UH-ville” would. However you say it, collision repairers are bound to have a wild time as they go marching in to the 2012 International Autobody Congress & Exposition (NACE), which will be held in the “Big Easy” Oct. 10-13. Maybe it’s the fact that NACE is the biggest all-collision trade show in the country. Or maybe it’s people’s hankering for a po’boy.Whatever the case, reports are that housing is up 62 percent over last year, and the CARS section of the floor (mechanical) has doubled in size from 2011.
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SHOW PREVIEW » NACE
troops that you’re after, NACE is the place. With more than 80 educational sessions being offered, you’re sure to find the topics you need to brush up on. If you need to reinforce to your staff the importance of customer service, how about treating them to “It’s Not About the Car! A Customer Service Review” by Bob Keith of CARSTAR on Wednesday, Oct. 10 from 8:30-10 a.m.? Are you closing less than 50 percent of your customer-pay business? Then you could probably stand to take “Improving Closing Ratio on Customer Pay Work” by Robert Rick of Gates and Steve Trapp of DuPont on Wednesday, Oct. 10 from 8:30-11 a.m. Are you trying to figure out why the new Generation Y-er wants to do things his way in your shop and not your way? You better not miss “Can’t We All Just Get Along?” by Bill Haas of Haas Performance Consulting LLC on Wednesday, Oct. 10 from 3-4:30 p.m.
Photo: Gary Yim/Shutterstock.com
Attention, Class! » If it’s training your
NACE attendees can get their party on...on Bourbon Street.
Technical Training » If it’s technical training you want, then look no further than the I-CAR Technology Showcase. I-CAR will provide 11 training classes Wednesday, Oct. 10, through Friday, Oct. 12. Each instructorled (live) class will last four hours. Online registration is available for $93/course at www.ASRWevents.com.
Good Eats Central Grocery is a restaurant and deli located in the French Quarter. It’s famous for inventing the muffuletta — a gargantuan sub sandwich with layers of marinated olive salad, cheese and spiced Italian meats. One is big enough for two people, so bring a friend and share the love. 923 Decatur Street ■ (504) 523-1620 As its name suggests, the Napoleon House was once offered to the emperor as shelter during his exile. Though he never actually made the visit, the 215-year-old building welcomes artists, writers and bar-hoppers year round with its inviting, sophisticated atmosphere. 500 Chartres Street ■ (504) 524-9752 Clover Grill is open 24 hours to satisfy all your late night cravings. The chefs cook their burgers under hubcaps and are also known for making a killer omelet. Just don’t fall asleep at the table waiting for your food — you’ll miss out. 900 Bourbon Street ■ (504) 598-1010 While its food isn’t characteristically New Orleans, Pat O’Brien’s is home to the hurricane cocktail — a libation that’s as local as the muffuletta and as dangerous as its namesake. 718 Saint Peter Street ■ (504] 525-4823)
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I-CAR is a long-standing supporter of ASRW and will return to the event this year with some of its newest training, such as its Blueprinting Process and Damage Discovery (BLU01) course. During this “live demo” course, students will learn how blueprinting can lead to more accurate damage assessments and gain insights into applying the blueprinting process in their own shop environments. The live demo will include the disassembly of a vehicle and steps to discover hidden damage. The blueprinting course will take place Thursday, Oct. 11, and Friday, Oct. 12, from 10 a.m.-3 p.m. on the ASRW show floor and will have a maximum of 15 students per session. The course costs $100/student, and registration is available online. The I-CAR sessions offered at ASRW 2012 include: Wednesday, Oct. 10
8 a.m.-12 p.m. – Inspecting Repairs for Quality Control (QUA01) 1 p.m.-5 p.m. – Corrosion Protection (CPS01) / Hazardous Materials, Personal Safety and Refinish Safety (WKR01) Thursday, Oct. 11
8 a.m.-12 p.m. – Automotive Foams (FOM01) / Measuring (MEA01) 10 a.m.-3 p.m. – Blueprinting Process and Damage Discovery (BLU01) 1 p.m.-5 p.m. – Steel Unitized Structures Technologies and Repair (SPS07) Friday, Oct. 12
8 a.m.-12 p.m. – Overview of Cycle Time Improvements for Collision Repair (CYC01) / Steering and Suspension Damage Analysis (DAM06) 10 a.m.-3 p.m. – Blueprinting Process and Damage Discovery (BLU01) 1 p.m.-5 p.m. – Structural Straightening Steel (SSS01)
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SHOW PREVIEW » NACE
Photos: Leon Ritter, Stephanie Lupoli / Shutterstock.com
Sights & Sounds There’s no escaping the French Quarter on a visit to NOLA. A staple of the town, it’s a bit of the past preserved with historic buildings and unique shops and restaurants. By day, it’s a charming place to take a stroll, but come night, it’s packed with partyers. Regardless, it’s entertaining at any time of day. Grab a po’boy and dig in. Bourbon Street is a segment of the French Quarter that serves as the epicenter of nightlife. Between
the lax open container laws, abundance of bars and plenty of strip clubs, this area certainly has its temptations. If drunken debauchery isn’t your style, visit one of the many restaurants or jazz clubs on the strip and people-watch from afar. If you’re looking for something subtler than Bourbon Street, then Royal Street’s the place to be. This section of the French Quarter is filled with quaint shops, elegant art galleries and aspiring jazz musicians. Throw a street performer a chunk of change and stop by one of the street’s world-renowned restaurants or antique shops. Adorned with elaborate mansions and big, beautiful gardens, the Garden District offers a nice change of pace from the hustle and bustle of Bourbon Street. This area housed the Nouveau Riche back in the 1800s and now serves as the residence of several celebrities. Take the St. Charles street car there, then admire (and maybe envy) the digs of Sandra Bullock and John Goodman. For liquor aficionados, the Old New Orleans Rum Distillery is a place to get your drink on without the chaos of Bourbon Street. Pay a small fee for a tour to see the rum-making process firsthand. Afterwards, you can taste a variety of the distillery’s finest spirits. Just be sure to get a ride back! If you’re a history buff, then a visit to Lafitte’s Blacksmith Shop Bar is a must. Reportedly the oldest bar in America, this watering hole was built in the early 1700s and allegedly served as a base for pirate Jean Lafitte’s smuggling operation.
MSO Symposium ack by popular demand will be the MSO Symposium, which last year was a sold-out success. It will be held Oct. 12 at the Morial Convention Center and will be open to shop owners with two or more shops. Cost is $100. Tailored to multiple-shop operators, the NACE guide says it will “provide high-end content to an exclusive group of high-end buyers.” And it has more than 12 sponsors to date. One of the presentations will see a return of the leaders of the largest company-owned MSOs in North America (the “Big 4”) to provide an update on their business and take a deep dive into their approach to developing their leadership teams, growth strategy and future vision. The schedule of events is as follows: 8:30-8:45 a.m. – Welcome and opening comments 8:45-9:45 a.m. – Developing a Sustainable Culture
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A panel discussion presented by Marcy Tieger, Symphony Advisors. Guest panelists will include: Andrew Taylor, chairman and CEO, Enterprise Holdings; Pam Nicholson, president and COO, Enterprise Holdings; and Christine Taylor, assistant vice president, Enterprise Holdings.
9:45-10:45 a.m. – Strategic Brand Development: Differentiate Through Innovation Facilitated by: David Lingham, IBIS conference director Guest speaker: Sasha Strauss, founder and CEO, Innovation Protocol; Professor, University of Southern California
10:45-11:15 a.m. – Networking break
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11:15 a.m.-12:30 p.m. – Building Lasting Business Relationships Through Performance A panel discussion presented by Matthew Ohrnstein, Symphony Advisors. Guest panelists will include automobile physical damage claims executives from the industry’s top insurance companies.
12:30-1:30 p.m. – Lunch 1:30-2:45 p.m. – What a Difference a Year Makes A panel discussion presented by Matthew Ohrnstein, Symphony Advisors. Guest panelists will include: Steve Grimshaw, CEO, Caliber Collision Centers; Chris Abraham, president, Service King Collision Centers; Duane Rouse, CEO, ABRA Auto Body & Glass; Brock Bulbuck, president and CEO, The Boyd Group.
2:45-3:15 p.m. – Networking break 3:15-4:30 p.m. – Show Me the Money: Private Equity’s View of the Collision Repair Industry A panel discussion presented by Rex Green, BB&T Capital Markets, head of consumer group. Guest panelists will include various private equity firms. Discussion topics will include: • Current state of the financial markets • Why are investors attracted to the collision repair space? • Why raise private equity? • What are the key business attributes required to raise private equity? • What is the process to raise private equity? • How are valuations derived? • What happens after the private equity transaction?
4:30-4:45 p.m. – Closing comments 4:45-7 p.m. – Networking reception
Product
Spotlight Audatex 3D Intelligent Graphics An Innovative, New Approach to Estimating ith 3D Intelligent Graphics from Audatex, seeing is believing. Our goal was simple: to help you create a faster, more accurate estimate. Working with 3D Intelligent Graphics is easy and intuitive.You’ll be up and running within minutes. No special training is required. Features include: ● Unlimited Zoom – Zooming on assemblies or individual parts helps you isolate, select and order the right part the first time – every time. ● Color-coded part types, special
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substrate materials and selected parts – Now you can easily and visually
differentiate between part types. Selected parts are color-coded, allowing users to easily check at-a-glance to ensure that all damaged parts have been included in the estimate. Substrate materials color coding also helps ensure that proper repair techniques are used. ● 360-Degree Rotation – For the first time in estimating software, vehicle sections, assemblies and individual parts can be rotated 360 degrees. ● Parts in Perspective – Eliminate guesswork by seeing vehicle parts exactly as they appear in relation to each other.
Audatex 3D Intelligent Graphics offers 360-degree rotation, unlimited zoom, color-coded parts and substrate materials identification, making it fast and easy to create an accurate estimate.
Ready to see the future in 3-D? Come see us at the NACE show (booth #N1401)… view an online demo video here: http://pages.audatex.us/3dgraphics ... or call 800-237-4968.
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Booth Previews With NACE, SEMA and AAPEX just around the corner, you’re probably getting the itch to start spending money on equipment and products. Let the fun begin! The BodyShop Business NACE-SEMA-AAPEX Booth Previews 2012 is packed full of potential purchases. If something in this paid-for sampling of products and services catches your attention, you can get more information by visiting the company’s booth at NACE (Oct. 10-13), SEMA (Oct. 30Nov. 2) or AAPEX (Oct. 30-Nov. 1). If you won’t be attending any of these shows, fill out the Reader Service card found in this issue between pages 76 and 77 and drop it in the mail.
The cordless EXT-LI28 HORNET
is the latest offering from Extractor. Powered by a 28-volt lithium ion battery, the HORNET provides all the power and rugged reliability technicians have come to expect from Extractor tools. The 28-volt motor generates over 3,000 strokes per minute, which improves your productivity, efficiency and bottom line. The HORNET is competitively priced and would make a great addition to any technician’s arsenal of tools or toolbox.
NACE Booth #N1530 • www.extractortools.com • extractor@crystalglass.ca • 877.628.8837
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Booth Previews Clean, Dry, Heated Atomizing Air From Your Existing Air Compressor Cleaning, drying and heating the atomizing air from your existing compressed air source can be accomplished with The Solution by Martech Services Company. According to Tom Wright, director of sales and marketing, when placed near the point of use, The Solution will work with the existing compressed air source. The fourstage filtration is outfitted with an automatic moisture discharger. Then the clean air is further filtered to remove moisture content for super dry air. A controller, with digital outputs, allows user to set the temperature of the atomizing up to 165° F. The Solution is shipped complete with a 3/8” diameter x 35-foot spray air hose. “With the advent of waterborne paints becoming mandated by government agencies, the need for this type and
quality of atomizing air is crucial”, says Wright. The Solution is a complete compressed air system designed to clean, dry and heat the atomizing air for today’s spray paint requirements. It is easy to use, simple to install and affordable to maintain. The Solution is the result of years of experience and testing to bring to the market The Solution to today’s needs for atomizing air that works well with both waterborne and solvent-based paint systems.
For more information on The Solution, contact Martech Services Company at (800) 831-1525.
Supplying High Quality Automotive Repair Tools for More Than 45 Years
Motor Guard has been manufacturing a complete line of compressed air filtration products designed to deliver clean, dry, oil free air for more than 45 years. Our Optima Spray Gun line is unmatched for finishing quality.
We supply collision repair professionals with world class tools designed to handle today’s highstrength steel and plastic panels. Our offering is highlighted by our full line of U.S. manufactured Magna-Spot Stud Welders and accessories.
Motor Guard Corporation
Our refinishing accessories, including the popular Stripe Eliminator and Spin Doctor cleaning tools as well as a full assortment of Sanding Blocks, are designed to streamline your entire refinishing experience...making your job easier and cleaner than ever before.
www.motorguard.com SEMA Booth 11167
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»| Industry Update |« Fraud continued from pg. 12 “In talking to the jury afterward, they felt the tape was certainly powerful evidence,” said Michelen. “But overall, even without the tape, they felt there was no evidence that Ms. Pilitz was trying to do anything wrong. There was so little evidence of any wrongdoing in this case that I don’t know how it got out of the grand jury, never mind all the way to trial.”
According to Michelen, about 10 jury members chatted with Pilitz for more than an hour after the verdict was rendered. “I’ve tried a lot of cases, but have never seen a jury be this supportive of an accused person after the trial. They mostly just want to get home,” Michelen said. “This jury, however, wanted to let Ms. Pilitz know that they understood that she should never have been arrested or prosecuted at all.”
The DA’s office also charged Pilitz with possession of a forged instrument when it found a DMV form in her shop bearing her father’s signature, which they claimed was forged. The judge presiding over the case, the Honorable George Peck, dismissed that charge for lack of evidence before jury deliberations began. “It’s a total vindication for me and my company,” said Pilitz. “I have had to fight GEICO and other insurers and several incorporated villages for years just to let me run my business. “I was paid monetary damages as well as given tow agreements. I had the highest sealed bid to tow in Rockville Centre, but they took it away from me and gave the bid to an all-male towing company. All the towers who presided at the opening of the bids could not believe what just took place. ‘This time, though, they nearly put me out of business with these charges, which should have never been brought in the first place. I’m so thankful that this jury understood what was going on and threw the whole case out.”
Florida Body Shop Seeing Insurers Pay Increased Labor Rate Gunder’s Auto Center, Inc., has announced that some insurers are now willingly paying its increased labor rate, which went from $42 per hour to $48 per hour in June 2012. Ray Gunder, founder of Gunder’s Auto Center, Inc., which has served Lakeland, Fla., and its surrounding communities for more than 44 years, determined that the current labor rates which were being offered by insurers were insufficient to sustain profitability and continued growth. “It had been almost six years since rates had moved, driving our net profit into a danger zone,” said Gunder. “Our business and our techs struggling financially left me with no options. Every insurance employee I talked with certainly hadn’t missed their cost of living raises. If repairers sit around and wait for a hand-out, that will be what they will likely get. I felt that for my company and its team members to keep up with the rising costs of living and for us to keep abreast of ever-increasing operational costs, raising our labor Circle 66 for Reader Service
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»| Industry Update |« rates was necessary. We needed to take action, and we did.” Once Gunder determined the new rates, they were posted in the shop’s reception area and each claims person and appraiser who Gunder’s dealt with were informed of the new rates. According to Gunder, this increase, which he considered minimal, was considered by many insurers to be substantial and was met with resistance. However, based on his reputation for not hesitating to act on behalf
of his customers in asserting their rights for “fair and acceptable” compensation for “reasonable and necessary” repair costs, the insurers elected to pay the rate, albeit only after making their concerns and objections known. Some insurers, however, have yet to pay the increased rate, according to Gunder. As such, Gunder’s has had to file lawsuits on behalf of their customers via an Assignment of Proceeds and/or Power of Attorney. “To date, two of these insurers
have asked our attorney what his charges are to date, perhaps with the thought of conceding, paying our rates and avoiding protracted litigation,” Gunder said. “With regard to the others, we’ve filed for discovery and scheduled depositions with their claims people and I’m anxious to see what we find as it will no doubt lead to other issues to be used in future actions...if and when they should be required. “I’m sure all insurers are concerned with having to pay other shops in the area if they pay Gunder’s, but I have to say that I’m stunned at how far we’ve come in getting fair and reasonable compensation for things like PMC-Logic material invoicing, mark-up on sublet, parts return fees, and many other reasonable and necessary charges, and have consistently heard that other local repairers don’t request such compensation, even though they know Gunder’s is getting paid for them. I’ve had appraisers tell me, ‘Ray, I’d pay it if asked...but very few even ask!’ “As for me, I’m not looking to fix the world, I just want to fix my customer’s cars properly, pay my techs fairly for their efforts and provide for my family.”
New Ad Agency to Specialize in Body Shop Marketing A new St. Louis-based ad agency – B2B Automotive Marketing, LLC, a subdivision of Back 2 Basic Marketing – will offer marketing and design services for body shops, car dealerships and auto repair shops. Social media, website development, search engine optimization, email marketing campaigns, branding and graphic design come a la carte or combine into customized packages at varied budget levels. “Our existing clientele includes an increasing number of auto body shops. As we worked with these clients, we found a niche that lent itself to an expansion plan,” said Back to Basic Marketing and B2B Automotive Marketing President Michelle Nelson, who has more than 25 years of experience working with body shops nationwide. “This is an exciting new initiative for Back 2 Basic Marketing, and we're thrilled to grow our business right here in St. Louis.” For more information, visit www. btobautomotive.com. Circle 68 for Reader Service
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»| Industry Update |«
Nu-Look Collision’s Raffle for Royston
Raises Thousands of Dollars for Employee u-Look Collision and Kevin Royston’s friends and family witnessed a huge success with their Ride for Royston benefit. The event included a group bicycle ride, dinner, silent auction and Nu-Look Collision’s Raffle for Royston, which raised more than $22,000 for the business’ lead metal technician. Kevin Royston, who works at the NuLook Collision downtown Rochester shop, was riding his bicycle when he was struck by a hit-and-run driver in Rushville, N.Y., on June 5. He had to have the lower portion of his leg amputated as a result. The event drew a huge outpouring of support for Kevin. There were 155 bicyclists that took part in the group benefit bicycle ride, and several others that attended the event and dinner. It was a
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day full of love and support for Kevin and for Heather Boyum, who was recently killed while bicycling. Nu-Look Collision’s Raffle for Royston, along with additional donations, raised $22,445 for Kevin and his family. There were 79 raffle prizes given away at Nu-Look Collision raised $22,445 for an employee who was struck by a hit-and-run driver while riding his bicycle. the event, which included a $1,000 cash prize from Nu-Look Collision, a $400 7.3 Trek bicycle donated by Geneva gift certificate to Prime Steakhouse Bicycle Center, and a $900 Snap-on Tools donated from Nu-Look Collision, a 2012 tool cart.
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»| Industry Update |« U.S. House Judiciary Subcommittee
Holds Hearing on PARTS Act he U.S. House of Representatives Committee on the Judiciary’s Subcommittee on Intellectual Property, Competition and the Internet recently held a hearing on the Promoting Automotive Repair, Trade and Sales (PARTS) Act, H.R. 3889. The bill’s sponsor is Rep. Darrell Issa (R-Calif.). The legislation also has five co-sponsors, including Reps. Bill Cassidy (R-La.), Walter Jones Jr. (R-N.C.), Zoe Lofgren (DCalif.), Ron Paul (R-Texas) and Dennis Ross (R-Fla.). Lofgren has offered similar legislation in a previous congress. Witnesses at the hearing included W. Neal Menefee, president and CEO for Rockingham Group; Kelly
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Burris, shareholder and chair of Green Technology Practice Group, Brinks Hofer Gison & Lione; and Jack Gillis, director of public affairs at the Consumer Federation of America (CFA). The bill makes it not an act of infringement with respect to a design patent to: (1) make, test or offer to sell within the U.S., or import into the U.S., any article of manufacture that is similar or the same in appearance to the component part claimed in such design patent if the purpose of such article is for the repair of a motor vehicle to restore its appearance to as originally manufactured; and (2) use or sell within the U.S. any such same or similar arti-
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cles for such restorations more than 30 months after the claimed component part is first offered for public sale as part of a motor vehicle in any country. Burris, in opposition to this bill, made the following comments: “What substandard nonOEM parts translates to for the brand owners, such as Ford, Chrysler and GM, is a tarnishment of their image because the replacement part is presumed to be made by the OEM once the vehicle is back on the road. When the plastic is crazing or the chrome is rusting, consumers will likely think that the OEM does not make quality vehicles. And when the airbag does not deploy because a
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cheap imitation bumper beam was used in a repair, consumers will also conclude that the OEM does not make safe vehicles. Although the Lanham Act can protect some parts as I mentioned above, under the Lanham Act, this erosion of their famous brands may be difficult to prove, especially if evaluated on the replacement part level. All the more need to maintain design patent protection for the parts that will keep us safe in our vehicles and maintain the quality that we as consumers have paid for and come to expect.” Gillis also commented on potential effects of the PARTS Act: “The lack of competition for repair parts will seriously harm consumers. Already-high accident repair costs will skyrocket. Continued on pg. 74
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»| Industry Update |« PARTS Act ontinued from pg. 72 Right now, in low-speed crash tests conducted by the highly respected Insurance Institute for Highway Safety, the cost of a simple 5-mph bump into a pole can cost thousands of dollars to fix. Why does it cost so much to repair these vehicles? Because the car companies are able to charge monopolistic prices because of lack of competition.” ASA, along with 10 other automotive groups, recently sent a letter of opposition to this bill to the chairman of the Subcommittee on Intellectual Property, Competition and the Internet. The letter highlighted concerns about parts quality: “Manufacturers of unlicensed automobile parts have to meet only one basic threshold: to produce a copy
that passes off as an original part. Those who produce such parts incur no costs attributable to original design, research and development, and most importantly, product safety testing. Accordingly, the manufacturer of the original product for
whom such unlicensed replacement parts are made does not know how these parts will perform with the rest of the vehicle and how their use will impact the quality and integrity of the original product. Automotive collision
repairers are very concerned about the quality of replacement crash parts. Permitting this intellectual property infringement also exposes consumers to significant safety, performance or durability risks without their knowledge.”
Florida Autobody Collision Alliance
Reveals Results of Labor Rate Survey he labor rates that insurance companies pay body shops to repair damaged vehicles aren’t high enough to cover the cost of repairs, according to a recently released survey of nearly 300 Florida collision repair facilities. The 2012 Florida labor rate survey, commissioned by the Florida Autobody Collision Alliance (FACA) and conducted by CSi Complete to ensure unbiased data collection and reporting, shows that while materials, labor and equipment costs continue to rise steadily, insurance company labor rates are not keeping pace
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and, in many areas, have not increased in nearly seven years. Paint and material costs, says FACA, increase each year – sometimes twice in a year. Paint costs rose for body shops by at least 3.9 percent in 2011, according to FACA, with some shops seeing up to a 7.8-percent increase. The respondents, 82 percent of whom were independent shops, turned in an average body labor rate of $44.14 and paint material rate of $25.96. Continued on pg. 76
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»| Industry Update |« Labor Rate continued from pg. 74
New Network of Body Shops
“FACA is grateful for the participation of so many shops, and we’re pleased to be able to provide this information to the collision repair industry,” said Cathy Mills, FACA’s executive director. “But to most of us, this is not news – we’ve seen costs rise and margins shrink year after year with no movement on labor rates. Without reasonable and regular increases in the amount insurance companies pay to repair vehicles, body shops are finding it harder to recover repair costs. Shrinking margins make it much more difficult to attract and retain skilled technicians or to keep pace with the advanced equipment and training needed to work on today’s newer vehicles.”
Created to Compete with Corporate Chains im Keller, a veteran of the collision repair industry, has announced the creation of the 1Collision Network, a group of midwestern collision repair facilities that has created a specific brand to market to insurers and consumers, as well as established a way to measure, manage and improve their performance in a group environment. Keller, who serves as founder and president of the 1Collision Network, has a background that includes being a multiple-shop owner, an executive vice president of a corporate-owned consolidator and a former board member and chairman of the Automotive Service Association (ASA). 1Collision features marketing planning and support services, e-Marketplace software, a performance management system to track and report key performance indicators, a single point of contact with insurers, and educational and training programs facilitated through key strate-
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gic partners. Members receive ongoing support to increase traffic, enhance insurance relationships and to be the “best in class” in their marketplace. The network also provides purchase incentive programs with its strategic partners. “Many shop owners today are looking for a competitive solution in the marketplace to compete with the corporate chains,” said Keller. “1Collision provides the complete solution for the single and multiple shop operator.” Requirements to affiliate with 1Collision include being a progressive business, meeting CIC Class A Shop criteria, displaying a record of positive insurance relations, committing to branding requirements, and employing a staff that’s committed to continuous improvement. Qualified collision repair businesses interested in becoming a 1Collision Network location should email info@1collision.net or call (414) 289-7650.
»| Industry Update |«
NACE News Thirteen Paint Companies to Exhibit at 2012 NACE Automotive Service & Repair Week (ASRW), which includes the International Autobody Congress & Exposition (NACE) and the Congress of Automotive Repair & Service (CARS), has announced that 13 paint and coatings companies are supporting this year’s event through exhibit space and interactive sponsorships. Confirmed paint companies that will exhibit at ASRW include: 䡲 DuPont Performance Coatings
䡲 BASF - The Chemical Company 䡲 Sherwin-Williams Automotive Finishes Corporation 䡲Valspar 䡲 Matrix System Automotive Finishes, LLC 䡲 Axis Performance Coatings/Vogel Automotive Coatings 䡲 Fashion Paint 䡲 Silver Sails Paints Additional coatings companies exhibiting at ASRW include: 䡲 Beta Color
䡲 Chemicar 䡲 ChemSpec USA Inc. 䡲 Lusid Technologies Inc. 䡲 Roberlo, S.A. In addition to exhibiting, DuPont Performance Coatings will again sponsor the Opening General Session/Keynote on Thursday, Oct. 11, as well as the MSO Symposium, and will exhibit in booth #1001. BASF is also sponsoring the MSO Symposium and will exhibit in booth #1229. “Attendees consistently ask to see the major paint companies on the show floor at ASRW, and we welcome these key exhibitors to ASRW 2012,” said Ron Pyle, ASA president. “We appreciate the support of each of these companies, as well as their continued commitment to the industry.”
SkillsUSA Winners to Attend ASRW Automotive Service and Repair Week (ASRW) has announced that the winners of this year’s SkillsUSA Championships in collision repair technology and their instructors will attend the event as featured guests at the ASRW Awards Ceremony and Opening General Session. The winners and their instructors will be recognized at the Opening General Session Thursday, Oct. 11, as well as the ASRW Awards event Friday, Oct. 12, held off-site at the National World War II Museum. Tickets for each event are $25 ($35 after Aug. 16). “The SkillsUSA winners represent the next generation of collision repairers, and we consider it a great honor to be Continued on pg. 78
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»| Industry Update |« SkillsUSA continued from pg. 77 able to recognize their outstanding work among the industry at ASRW,” said Ron Pyle, ASA president and chief staff executive. “We are thrilled to welcome the SkillsUSA gold medal winners and instructors back to the show.” The SkillsUSA Collision Repair Technology Committee requires students to go through a series of workstations to assess skills in the following areas: metal-
work, welding, plastic repair and structural analysis. The overall appearance of the finished product, speed and proper safety practices are judged. There are written tests on estimating, structural analysis and an ASE exam. The students are also interviewed by the judges. Seventy-two competed in the Collision Repair Technology Contest at the SkillsUSA National Leadership and Skills Conference in Kansas City.
2012 SkillsUSA Winners: Jason Lucius – SkillsUSA secondary gold medal winner Carl Rusch – instructor secondary John Stanton – SkillsUSA post-secondary gold medal winner Danny Mays – instructor post-secondary “With the educational programs planned and networking opportunities, ASRW allows an important forum for the collision repair community to become more involved in SkillsUSA and the lives of the industry’s future workforce,” said Darrell Andrews, State Farm property claims trainer and SkillsUSA National Collision Repair chairman. State Farm Insurance will sponsor the trip to ASRW for the winners and their instructors.
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»| Industry Update |« AMI Offers Free NACE Expo Pass to EstimateScrubber.com Users VehicleOwnersGuide.com and the Automotive Management Institute have announced that users of EstimateScrubber.com can receive a free NACE Expo Pass ($25 value) and a $50 discount coupon toward any conference purchase. Added Toni Slaton, AMI executive director, “AMI is pleased to make this valuable opportunity available to EstimateScrubber. com users. As the world’s largest collision repair event, NACE offers attendees a unique opportunity to attend a conference program with more than 80 relevant and timely sessions and a trade show featuring all the products, services, equipment and technology available to industry professionals.”
I-CAR Announces Training Schedule at ASRW
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Automotive Service & Repair Week (ASRW) announced that I-CAR has released its training schedule for this year’s event and will provide 11 training classes beginning Wednesday, Oct. 10, through Friday, Oct. 12. Each instructor-led (live) class will last four hours. Online registration is available for $93/course at www.ASRWevents.com. I-CAR is a long-standing supporter of ASRW and will return to the event this year with some of its newest training, such as its Blueprinting Process and Damage Discovery (BLU01) course. During this “live demo” course, students will learn how blueprinting can lead to more accurate damage assessments and gain insights into applying the blueprinting process in their own shop environments. The live demo will include the disassembly of a vehicle and steps to discover hidden damage. The blueprinting course will take place Thursday, Oct. 11, and Friday, Oct. 12, from 10 a.m.-3 p.m. on the ASRW show floor and will have a maximum of 15 students per session. The course costs $100/ student, and registration is availContinued on pg. 81 September 2012
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Consolidators CARSTAR Adds Two Houston Shops to Network CARSTAR Auto Body Repair Experts has announced the addition of two Houston locations – CSI CARSTAR and Pinnacle CARSTAR Auto Body – to its network of collision centers. Cheryl Perdue, a 25-year veteran of the auto body repair business, runs the CSI CARSTAR shop, which has been family owned and operated since its founding in 1983. Her husband, Trey, is the general manager. “By becoming part of CARSTAR, we maintain our independence but are now part of the nation’s largest MSO, which will impact us from a competitive standpoint,”
said Trey Perdue. “We also looked at the whole package of what CARSTAR can bring to the table for us: better pricing through their buying power, corporate rebates, operational and marketing support, and insurance relationships as well as the opportunity to join a growing brand, not just in the Houston market but on a national scale as well.” Martin Russell, who owns Pinnacle CARSTAR Auto Body, has been active in the industry for 20 years. “My business is growing to a point where I need assistance in managing growth,” Russell said. “The operational
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and organizational support I will get from CARSTAR will help me streamline my business. I’m also looking at this as an exit strategy. I know being part of the national CARSTAR brand will bring more value to my business when I do decide to sell. The fact that I have marketing and operational support, buying power and DRPs will be very beneficial in the valuation of my business.” With the addition of CSI CARSTAR and Pinnacle CARSTAR Auto Body, CARSTAR now has six locations in the Houston area and a total of eight within 45 miles of the city.
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»| Industry Update |« I-CAR continued from pg. 79 able online. The I-CAR sessions offered at ASRW 2012 are: Wednesday, Oct. 10
8:00 a.m.-12 p.m. – Inspecting Repairs for Quality Control (QUA01) 1:00 p.m.-5:00 p.m. – Corrosion Protection (CPS01) / Hazardous Materials, Personal Safety and Refinish Safety (WKR01)
Thursday, Oct. 11
sion Damage Analysis (DAM06)
8:00 a.m.-12:00 p.m. – Automotive Foams (FOM01) / Measuring (MEA01) 10:00 a.m.-3:00 p.m. – Blueprinting Process and Damage Discovery (BLU01) 1:00 p.m.-5:00 p.m. – Steel Unitized Structures Technologies and Repair (SPS07) Friday, Oct. 12
8:00 a.m.-12:00 p.m. – Overview of Cycle Time Improvements for Collision Repair (CYC01) / Steering and Suspen-
10:00 a.m.-3:00 p.m. – Blueprinting Process and Damage Discovery (BLU01) 1:00 p.m.-5:00 p.m. – Structural Straightening Steel (SSS01) “Offering I-CAR training courses at ASRW is a huge value-add to attendees, and we’re pleased to once again partner with them in this capacity,” said Ron Pyle, ASA president.
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»| Industry Update |« C.D.E. Collision Damage Experts Opens Sixth Location in Lansing, Illinois C.D.E. Collision Damage Experts, a Chicago-based collision repair company, announced that it has acquired
South County Auto Body in Lansing, Ill. This facility is located at 2735 Bernice Road and has been serving
the Lansing community for more than 35 years. C.D.E. now has six locations in Lynwood, Ill.; Hammond, Ind.; Crown Point, Ind.; and two in South Chicago. C.D.E celebrated their 30th year in business by opening state-of-the-art facilities in Hammond and Crown Point, Ind. “South County Auto is the premier body shop in Lansing, known for their commitment to a high quality repair and incredible customer service. We’re pleased to have their staff members join our team,” says Chuck Freiberg, president and CEO of C.D.E. Collision Damage Experts. Added Chris Cardwell, vice president of operations of C.D.E. Collision Damage Experts, “I’m very excited about this acquisition and feel this location is a critical part of our growth strategy throughout Chicagoland and Northwest Indiana.”
The Carlyle Group Closes Acquisition of
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Service King Collision Repair Centers lobal alternative asset manager The Carlyle Group, together with management and employees of Service King Collision Repair Centers, has announced its closure on the acquisition of majority ownership in the largest independent U.S. chain of auto body repair shops. Terms of the transaction were not disclosed. Founder Eddie Lennox retains a significant ownership stake in Service King. Former CEO Cathy Bonner is now chairman of the board of directors. Chris Abraham serves as Service King's new CEO, while Jeff McFadden has been named president. Bonner and other personnel say the MSO is well-positioned for national growth. “Service King will be the premier collision repair provider in the country. We expect our brand to be the gold standard for excellence in quality of repair and service to our customers,” said Abraham. Established in 1976 and headquartered in Dallas, Texas, Service King operates 49 locations in the Dallas-Fort Worth, Hous-
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»| Industry Update |« ton, San Antonio and Austin metropolitan areas and has doubled its revenue and location count in the past three years. As it embarks on a national expansion plan, Service King in May announced its planned entry into the Arizona market by partnering with Auto Body World Inc., which owns eight locations in the state.
Gerber Collision & Glass Total Number of U.S. Stores:
151
Gerber Collision & Glass Adds Locations in North Carolina, Georgia The Boyd Group Inc. has announced the opening of two new Gerber Collision & Glass repair centers in North Carolina and one in Georgia. The Boyd Group now operates 151 locations in the U.S. The first repair center is located in Concord, N.C., and was previously known as Turn 2 Collision. It is approximately 10,000 square feet in size. The second center in Havelock, N.C., previously operated as Robert's Body Shop and is approximately 20,000 square feet in size. The new repair center in Alpharetta, Ga., is approximately 10,000 square feet in size. It previously operated as Carson Automotive. "The opening of these centers brings our total locations in North Carolina to 19 and in Georgia to 13, as we continue to execute on our growth strategy by adding new centers in attractive locations to our North American footprint," said Tim O'Day, president and COO of the Boyd Group's U.S. operations. "Concord is the largest city in Cabarrus County, and this addition will help expand our brand in the Charlotte metropolitan area. Havelock is home to the Marine Corps air station Cherry Point, the world's largest Marine Corps air station with more than 25,000 military personnel. The Havelock location will allow us to better serve vehicle owners and insurance partners on the North Carolina coastline. Likewise, the new Alpharetta center will help us expand service coverage in the northeastern Atlanta area."
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Association SCRS Says Registration for SEMA Show RDE Series Up Nearly 300 Percent Over Last Year he Society of Collision Repair Specialists (SCRS) has announced that registration for the Repairer Driven Education (RDE) series at the 2012 SEMA Show is up nearly 300 percent year-to-date over last year. “The first two years of the RDE program brought a lot of very positive response from the attendees, and we believe that the numbers clearly indicate that our program at the SEMA Show is delivering exactly what the industry is looking for right now,” said SCRS Chairman Aaron
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Clark. “We’ve worked hard to put together a program that specifically addresses solutions to existing business conditions, and are glad to see the industry responding with early approval.” SCRS also reports an uptick in the number of multiple-shop operators (MSOs) and international automotive businesses participating in RDE. According to SCRS, the international repairers currently signed up for the 2012 RDE represent more than a dozen different countries. SCRS believes that the growth in both of these
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types of participants reflects the universal relevance of the issues addressed in the RDE sessions and the benefit the information holds for collision businesses regardless of location, business model or size. SCRS says the number of exhibitors in the Collision Repair & Refinish section is also up, with “double-digit” growth in the square footage these exhibitors will occupy. “In addition to the Collision Repair & Refinish section of the show, there are many collision industry companies that have
taken advantage of space that’s available in other areas of the show such as in Tools & Equipment (North Hall), Restyling & Car Care Accessories (North Hall), Racing & Performance (Central Hall), Hot Rod Alley (Central Hall) and the First Time & Featured Exhibitors (Upper South Hall) section,” said Clark. “The presence that these companies have throughout the show truly demonstrates what an integral partner the collision industry, and the businesses within it, has grown to be in the overall show makeup.”
Recycler Organizations Merge Accreditation Programs The Automotive Recyclers Association (ARA), Automotive Recyclers of Canada (ARC) and United Recyclers Group (URG), will centralize their accreditation programs into one united accreditation and certification standard for professional automotive recyclers. Named the CAR Gold Seal Accreditation Alliance, it aims to
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»| Industry Update |« AAIA Releases 2012 Digital Collision Repair Trends Report he Automotive Aftermarket Industry Association (AAIA) has released the 2012 "Digital Collision Repair Trends: Industry Statistics & Analysis" report, which combines the latest available industry data from original AAIA research, government and independent research sources. This online publication is the seventh edition of this report series and was designed to capture the size and scope of the collision repair
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sector of the automotive aftermarket industry. “Collision repair shop sales in 2011 totaled an estimated $38.7 billion, up 3.3 percent from $37.5 billion in 2010,” said Kathleen Schmatz, AAIA president and CEO. “Independent paint and body repair shops made up $25.7 billion or 66 percent of the total market. Stats like these, and so much more, are featured in this new study, which is just the latest offering in AAIA’s
advance excellence among automotive recyclers around the world. Joining ARA's CAR and Gold Seal programs on the initiative are URG's 8000 and ARC's Canadian Auto Recyclers’ Environmental Code (CAREC) programs. These programs have served to identify the top tier of certified professional
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ongoing effort to provide the most current and essential market intelligence available to help our members run successful businesses.” The report covers topics such as fatalities from vehicle crashes, 2011 retail distribution, collision repair shop sales and direct repair programs. Powered by Nxtbook Media LLC, AAIA says this digital publication retains both the traditional design and high quality content of earlier reports but also provides added value with many new functional enhancements. Users can:
automotive recyclers. In addition, ARA and ARC agreed to jointly fund the creation of a Web-based administrative platform for the CAR Gold Seal Accreditation Alliance that will allow for enrollment and tracking of the program from the participating automotive recycling companies worldwide.
䡲 Download Excel-based files, charts, tables and graphs that can be copied and pasted for presentations. 䡲Turn pages with the click of a mouse. 䡲View pages in a variety of sizes and formats. 䡲 Quickly locate what they're looking for through a “word search” feature. 䡲 Save material for future reference through the “bookmarks” feature. 䡲 Print the entire publication.
More Information » Copies of the new Collision Repair Trends study are now available – cost is $125 for AAIA members and $250 for nonmembers. To order, visit www.aftermarket.org and click “Market Intelligence,” or call AAIA market research at (301) 654-6664.
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»| Industry Update |« AASP-NJ Members Speak Out
Against Appointment of Avery as CIC Chair ccording to AASP-NJ, a record number of its members have been stepping forward to voice their displeasure with the July 18 appointment of State Farm’s George Avery to CIC chairman.The members’ action comes in response to AASP-NJ Executive Director Charles Bryant calling on repairers across the country to speak out against State Farm’s parts bidding program. “We feel the timing of this decision is unfortunate because of the perception it creates,” Bryant stated in his message to members. “Mr. Avery holding this position represents an obvious conflict of interest as CIC continues to address this emotionally charged and industry-changing parts program.” Bryant then urged members to contact current CIC Chairman Michael Quinn and
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CIC Administrator Jeff Hendler to voice their displeasure with the decision to place “a [very partisan] insurance guy at the helm of CIC.” “Within minutes of sending out my initial press release, I received statements from several members speaking to their disappointment with this decision,” says Bryant. “It is my hope that the industry continues to speak out against not only this questionable act by the CIC in nominating Mr. Avery, but also regarding the PartsTrader program itself.” AASP-NJ Legislative Committee Chairman and longtime board member Brian Vesley was among the first to convey his concerns George Avery on the matter. “What I know about Mr. Avery from his public positions…is that for many years, he has been the spokesperson for the narrowest selfinterest of insurers and his employer,” Vesley wrote in a message sent on Aug. 3. “Mr. Avery’s professional abilities are not in question; rather, the issue is the inherent conflict between his history of public advocacy of controversial insurer programs and the less partisan responsibilities of the CIC chair. Mr. Avery and his employer should decline the nomination if they value the integrity of the Collision Industry Conference.”
Another AASP-NJ member, Matt Casiano, said, “Find a suitable candidate who can best guide the membership toward [CIC’s] original mission and vision statement. [Avery’s appointment] will be giving State Farm exactly what they want – ushering in their new PartsTrader plan and once again inflicting serious damage on another attempt by our industry to unite in the face of a future that is daunting, at best.” Another longtime AASPNJ member shop echoed the sentiments of his association colleagues: “I strongly urge you to reconsider your nominee; put that power in the hands of someone who…has a true understanding of the struggles that shops like mine go through every day to keep customers safe and pay our bills.”
More information » AASP-NJ encourages any repairer who would like to make their opinions known on the appointment of George Avery to CIC chairman to contact current CIC Chairman Michael Quinn at mikeq@911collision.com and CIC Administrator Jeff Hendler at jeffhen@gmail.com. For more information on AASP-NJ, visit www.aaspnj.org.
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Corporate News BASF's Global Automotive Refinishing Training Network Expands BASF has announced that it is expanding its global automotive refinish training network. In Hanoi, Vietnam, a new Refinish Competence Center (RCC) has just opened, with new training centers in the pipeline for the U.S. and Italy. Influenced by an increasing number of training requests, BASF states that the additional network of training competence centers will further strengthen its position as a leader in an industry focused on customer intimacy and education. From various Asia Pacific countries including Australia and China to the U.S., France and Germany, BASF offers training for its automotive refinish customers at its RCCs. The training network comprises more than 50 training centers, where painters practice and perfect the use of automotive paints. At the RCCs, BASF says participants learn from professional trainers who share industry knowledge and tips participants need for high-quality and technically perfect automotive refinishing. In 2011, approximately 12,000 painters attended training courses at the RCCs worldwide. In Asia Pacific, more than 2,000 painters from various body shops participate in professional training courses at one of the RCCs each year. “These days, painters need more than traditional
training," said Ken Marshall, head of Automotive Refinish Coatings in Asia Pacific for BASF. "For this reason, we offer training courses at the RCCs that focus on both the quality and the efficiency of the seminar participants.” In Italy, an RCC is under construction in Cesano Maderno. At the same time, there are plans for the construction of a new RCC in Atlanta, Ga., where operations are scheduled to begin in mid-2013. The existing RCC in Sydney, Australia, and the location at Refinish Excellence in Jakarta, Indonesia, are now being renovated. Also, the RCC in Clermont, France, is under construction for a full upgrade. BASF says its training concept is geared to the international market, with all RCC locations being equipped with the latest technology in order to create an optimum learning environment for all seminar participants. “Whether in the United States, Vietnam or France, we work with the same high standards at our RCCs worldwide," said Jürgen Book, who is responsible for BASF’s RCCs in Europe. "In order to achieve excellent results, our RCCs have state-of-the-art equipment and feature best in the industry trainers.”
CARFAX Introduces
Repair Advantage Program for Body Shops CARFAX has introduced a free Repair Advantage Program which it says will promote collision repair facilities and the quality of their work to millions of used car buyers and sellers who view CARFAX reports every year. “Every day, CARFAX receives thousands of accident and damage records that appear on CARFAX Vehicle History Reports,” says CARFAX’s Chris Basso. “However, there’s little to no information available about the subsequent repairs to these vehicles. As part of this
program, shop owners can show that quality repairs were made at their trusted facility.” CARFAX says that body shops providing this information helps complete the story of a reported accident and subsequent repair. “Participating shops more effectively market their business, build trust in the repair and help maintain their customers’ vehicle value,” says Basso. Once a shop signs up, CARFAX extracts the vehicle-specific information from their shop management system. A
simple data connection regularly sends the repair details to CARFAX. Currently, collision repair facilities have branding opportunities on the CARFAX report each time their repair records appear, but CARFAX plans on offering additional marketing materials in the future. So far, almost 200 collision repair facilities have become members of the program. For more information, contact Don Elliott at donelliott@carfax.com or (317) 941-9001. September 2012
Total Automotive Featured on Speed Channel's 'Truck U' Total Automotive's Deluxe Hinge Repair Kit for 1999-2007 GM C/K Series trucks and SUVs was recently featured on the Speed Channel's popular television show, "Truck U."
In the episode, titled "Cam Am Fix," show hosts Matt Steele and Bruno Massel break down the installation, features and benefits of the Deluxe Hinge Kit and PRT (Pin Removal Tool). Since the first airing of the episode, Total Automotive has received a spike in online orders, according to business development manager Derek Flom. The episode will air multiple times over the next two months. View the segment online at http://truckutv.com/ ?p=1840.
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! e m i t y t r Pa
It’s
BodyShop Business is celebrating 30 years of service to the collision repair industry…and so is NACE! To honor the
30-30 mark, we’re hosting a party together at the BodyShop Business booth (N1129) on Friday, Oct. 12 from 2:30-4 p.m. at NACE in New Orleans. All body shop personnel at the show are welcome to stop by and reminisce with BodyShop Business and NACE. Complimentary refreshments will be flowing while supplies last, so don’t miss out!
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»| Industry Update |«
SCRS to Offer Session on
Parts Procurement at SEMA Show The Society of Collision Repair This session will provide Specialists (SCRS) has attendees with a global perannounced that it will be offerspective on the economic ing a presentation impact of New titled, "Bidding Zealand-based bidWars: A Global ding programs, View on the Possiprocedural impacts ble Impact of they have had on Insurer Involvement cycle times and in Parts Procureestimating pracment," at the SEMA tices, and changes Show at 12:30 p.m. they have had on on Thursday, Nov. 1 repairer/supplier in the Upper North relationships. It Hall of the Las will also include a Rex Crowther Vegas Convention historical overview Center. It will feaof the national ture Rex Crowther, rollout, changes editor of Panel Talk Magazine in made to the program along New Zealand, and David Newthe way and market impact ton-Ross, editor of The National from inception to present day, Collision Repairer in Australia and including market response at The New Zealand Collision various points throughout the Repairer. past eight years.
“Having seen firsthand the impact PartsTrader has had on the industry here in New Zealand, and hearing how different both PartsTrader and State Farm are saying it is going to be in the U.S., I struggle to see any advantage for repairers, or much real advantage for State Farm,” said Crowther, who has been involved in the New Zealand collision repair industry since 1967. “This makes me suspicious of the end game, as all repairers’ margins are vulnerable through this program and surely any insurer is out to maximize their profits for their stakeholders.” As a former owner of two Auckland, New Zealandbased repair facilities for 28 years, Crowther is no
stranger to repairer reaction to programs such as these. In addition, he served as the executive chairman of the New Zealand Collision Repair Association from 1999 to 2004, representing a membership base that performed more that 80 percent of the insurance-paid collision repair work in the country. He has also served on the board of ICAR New Zealand for the past 10 years and was chairman for two years prior to stepping down in April 2012. Since 2004, Crowther has been on the board of the Motor Industry Training Organization (MITO), which is responsible for all motor industry apprentice and advanced training. To register for this RDE seminar, visit www.semashow. com/scrs. For more information on SCRS, visit www.scrs.com.
ADVERTISER INDEX COMPANY NAME
AAPEX AFC Air Filtration Co. Aframe Spray Booths Airomax/U.S.Body Products Airvantage Tools Inc. Alloy Wheel Repair Specialists Inc. Amerex Corp. Anest Iwata USA Audatex Automotive Mgmt Institute Bendpak Blair Car-O-Liner Co. CCC Information Services Cebotech Inc. Certified Auto Parts Association ChemSpec USA Chief Automotive Systems CJJ Inc. Coastal Boot Col-Met Spraybooths CrashWriter Dent Fix Equipment DIRECTV Dominion Sure Seal DV Systems
PG. #
73 52 26 74 42 84 82 29 47, 63 84 Insert, 80 28 5 6-7 54 23 55 15 16 69, 79 70 81 21 48-49 44 66
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COMPANY NAME
PG. #
Eagle Abrasives 27 Evercoat 3 Extractor 38, 64 Farecla Inc. 4 Garmat USA 10-11 Goffs Curtain Walls 86 Gordon Auto Body Parts Co. Ltd. 68 H & S Auto Shot Mfg Co. 40 Herkules Equipment Corp. 56 Induction Innovations 80 Innovative Tools & Technologies, Inc. 39 Island Clean Air 32 Kaeser Compressors 43 Kayco Spray Booths 78 Lancer Insurance Company 34, 64 LiftMaster 57 Lone Star Alliance 79 Malco Products 17 Martech Services Co. 65, 78 Martin Tool & Forge/ Martin Sprocket & Gear, Inc. 82 Matrix System Automotive Finishes LLC 72 MMLJ, Inc. 56 Mobile Spray Technology 30 Motor Guard Corp 65, 86 NACE 13, 89 NAPA 67
COMPANY NAME
NRD LLC PPG Industries Pro Spot International RBL Products Reflex Truck Liners Rubber-Seal Products S.A.I.M.A. of N. America Safety Regulation Strategies SEMA Sherwin-Williams Co. Shop-Pro Equipment Spray Tech Steck Mfg Co. Suburban Mfg. Tite Spot Welders Total Automotive Toyota Transtar Autobody Technologies UCoat It America, LLC UniCure Spray Booths Urethane Supply C.o Valspar VF Imagewear, Inc. Wedge Clamp Systems Inc. Wizards Products/RJ Star Inc.
PG. #
83 Cover 2 -1 Cover 3 83 51 36 37 22 71 45 35 53 22 85 85 9 Cover 4 31 76 59 33 18-19 61 81 41
Product
Showcase Eliminate Brake Noise Ranger Brake Lathes cure thickness variations on rotor and drum surface areas – a common condition caused by uneven contact of the brake pad on the friction surface that results in annoying brake noise. All Ranger Brake Lathes come standard with a heavy-duty work bench, quick-change tool-head design, complete adapter package, simple controls to minimize operator movement, double-headed work lamp, safety shield, chip “catch” funnel and an adjustable cross-feed stop.
Flexible Sanding Tool sia Abrasives’ new Flexible Hand Sanding Block has an adjustable wheel that adapts to both convex and concave shapes. The block distributes the full contact pressure to the total work surface, distributing sanding force equally throughout the entire contoured area. With an ergonomic design that reduces worker fatigue, its backing also contains a multi-hole air chamber to allow for full dust extraction for a clean work environment. It’s suitable for both multihole strips and net-type abrasives. sia Abrasives www.sia-abrasives.com Circle 150 for Reader Service
Filter and Monitor Air Compliance with the OSHA requirement for Grade “D” Breathable Air can be accomplished with the use of a Quality Air Breathing System. When placed near the point of use, the system will work with the existing compressed air supply. The four-stage filtration filters the air, and the on-board carbon monoxide monitor continuously monitors the air quality for compliance with current OSHA standards. This system is designed for multiple users, and accessories can increase or decrease the temperature of the air supply for improved user comfort. Martech www.breathingsystems.com Circle 151 for Reader Service
Ranger/BendPak www.bendpak.com Circle 152 for Reader Service
Prolong Equipment Life LA-MAN Corporation’s series of Extractor/Dryers are designed as point-of-use filters that efficiently remove moisture and contaminants to improve and extend the life cycle of tools and equipment. The Extractor/Dryer is a two-stage filter designed to operate most effectively within 25 feet of the point of use. Each model offers a standard 5-micron rating with lower micron ratings available. With flow ranges of 15 SCFM to 2,000 SCFM and pressure ratings of up to 250 psi, the Extractor/Dryer is an ideal solution for an array of applications including air powered tools, surface preparation, paint spraying, powder coating and pneumatic operated equipment. Additional features include a built-in differential pressure gauge and weep drain. LA-MAN Corporation www.laman.com Circle 153 for Reader Service
Smartphone-Friendly Catalog Spectra Premium’s eCat is now available in electronic format. Smartphone users can access automotive and heavy-duty applications information, part numbers and OE and competitive interchanges paper-free. The catalog is located at ecat.spectrapremium.com. Spectra Premium www.spectrapremium.com Circle 154 for Reader Service
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Aggressive Sanding Tool sia Abrasives’ siabite 2511 File Belts contain self-sharpening ceramic grits and are designed for heavy-duty metal work. This product contains highly active grinding agents to achieve aggressive removal rates while extending the life of the product. It also contains a secondary topcoat grinding aid to reduce heat buildup. Engineered for demanding metal applications, it can be used on stainless steel, high-alloy steel and super alloys. sia Abrasives www.sia-abrasives.com Circle 155 for Reader Service
Remove Micro-Pinholes Evercoat’s 440Express Micro-Pinhole Eliminator is designed to be a shop’s insurance policy against micro-pinholes in glazing putty. Testing shows that, after use, up to 90 percent of rework caused by micro-pinholes will be eliminated. Evercoat www.evercoat.com Circle 158 for Reader Service
Produce Accurate, Tight Hems Malco’s DH Pneumatic Door Hemming Tool produces accurate, tight, clean hems without blemishing any part of a new door skin. The technician simply removes the old door skin and preps the door shell in the usual way. Slightly angling the upright lip of the replacement door skin with a hammer and dolly and flattening the point of entry for the Hemming Tool will ensure a smooth operation. The anvil may be positioned flush against the outer edge and finished side of the door skin. The high impact, ABS polymer anvil will not smudge or scratch the metal surface. A narrow seaming wheel fits flush against the anvil fence and will not distort metal or leave tracks. It’s compatible with most shop air supplies and accepts any quickconnect hose adapter equipped with a male 1/4-inch pipe thread. A 45-degree brass elbow fitting facilitates easy hose clearance when the tool is in use. Malco www.malcoproducts.com Circle 156 for Reader Service
Quality Breathing Air Create New Profit Center with Rentals Lancer’s commercial automobile insurance coverages allow body shop owners to establish their own rental fleet and turn it into a new profit source. Instead of referring customers to an outside car rental company, build your own on-site. Lancer Insurance (800) 782-8902 x3027 www.lancerinsurance.com. Circle 157 for Reader Service
The Personal Air Breathing Unit is a complete, belt-mounted 20 SCFM system that provides Grade “D” breathable air for a proper NIOSHapproved respirator. With the provided 54inch tool air hose assembly, it will allow for a bypass of air for a paint spray gun. It includes a built-in filter and a carbon monoxide monitor with both audible and visual alarms. Martech www.breathingsystems.com Circle 159 for Reader Service
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»| Product Showcase |« Wheel Repair Service Protect Yourself from Welding Sparks
Alloy Wheel Repair Specialists is seeking collision shop owners who would like to increase their revenue by adding on-site
Lightweight and flexible, Goff’s Weld Blankets are designed to be draped over materials, equipment, vehicles and vehicle interiors to provide protection from welding and grinding sparks, molten and hot metal debris, and torch-cutting spatter. These blankets are constructed with a durable, tear-resistant, soft carbon fiber material that can withstand temperatures up to 1,800° F. They’re ideal for use on surfaces that cannot have an abrasive material cover such as automobile surfaces, glass, upholstery, plastics, electronic components and leather. Goff’s Weld Blankets are stock sized at 80 x 72 inches and are packaged in a reusable container. Goff’s Enterprises www.goffscurtainwalls.com Circle 160 for Reader Service
alloy wheel repair and wheel straightening to their list of services. Features include low start-up cost, brand-certified training and a patented system. Alloy Wheel Repair Specialists Inc. www.awrswheelrepair.com Circle 162 for Reader Service
Quick Dent Removal The RADiTAP Rapid Dent Removal System is an air-actuated, long-reach pick solution for paintless dent removal and auto body panel restoration. Use it to access dents via door and gate latch openings, trunk and engine compartments, and wheel wells. It offers adjustable air power to vary the speed and intensity of the pick action while minimizing arm, wrist and hand strain. Four user-defined configurations for head and
Free Lightweight Filler Evercoat is hosting its “Save Some Green, Get Some Gold” promotion. For a limited time, shops can receive one free gallon of Evercoat’s new EverGold lightweight filler when they purchase two each of any of the following putties: Metal Glaze OEM, Metal Glaze, Glaze Coat or Easy Sand. EverGold is a newly formulated lightweight filler specially designed to give professionals the performance of premium body filler at a value price. EverGold is easy to spread and levels to a smooth finish. It contains ZNX-7 for superior adhesion and is tack-free for easy sanding. Evercoat www.evercoat.com Circle 163 for Reader Service
pick types, plus interchangeable 18-, 36and 48-inch drive shaft lengths, allow multiple setup combinations. A versatile ball tip and maneuverable wedge attach directly to the desired shaft length and employ a reciprocating action. Use the ball tip to work out dents in flat and rounded body panel locations by applying air-leveraged, repetitive smoothing action from any angle. The wedge can reach into misshapen crevices and sharp profiles. A right-angle pick assembly uses interchangeable steel and polymer blunt tips to provide a controlled, vibrating hammer-like action.
Sand Heavy-Duty Surfaces Ekaforce is a paper base that has flexible and highwear resistance characteristics, making it an ideal tool for sanding and polishing metal and fiberglass. Its flexible B-weight paper backing offers durability, while its aluminum oxide grain coating prevents premature clogging. It’s offered in 5- and 6-inch sheets, rolls and disks, and is available in 80180 and 400-1,200 grit counts. Uneeda Enterprizes www.sandpaper.com Circle 164 for Reader Service
Malco www.malcoproducts.com Circle 161 for Reader Service September 2012
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Classifieds 1-800-472-4551 Wholesale Body Shop REFINISHING SUPPLIES: Sherwin Williams, Sunfire, Spies, House of Color, Dimension, AWLGRIP, 3M, Marson, Fiberglass-evercoat, USC, SEM, Mequires, Pin Stripe, Binks, DeVilbiss, SATA, Tools & Equipment!
Great Service & Lowest Prices. Paints Plus, Stover, MO. www.paintsplus.com
3/8" and 1/2" Diameter heat treated alloy steel slide hammer hooks. 3/8" Diameter right angle hooks now available. Part No’s JR-16R & JR-16RF
Body Shop Tools • 800-423-4692 customerservice@morganmfg.com www.morganmfg.com
MarkiNgpeNdepot.coM Collision Shops, Towing, Auction Sites, Dealers, Recyclers, OEMs Tow Pro $2.50 Autowriter $3.50 Posca $3.50 Bopagla $2.00 Unipaint $3.86 MPD-15 $1.30 Volume Discounts! Call 888-906-9370 or online at
markingpendepot.com
• Original Equipment Wheels In Stock • Limited Lifetime Guarantee • 1000s of Wheels In Stock • Affordable Prices
We ship from eight different locations: Dallas, Houston, San Antonio, Los Angeles, Philadelphia, San Francisco, Chicago, Miami
Alloy Wheel Remanufacturing Order your Wheels at:
www.newwheel.com or 800-486-0931
94 « BodyShop Business | September 2012
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www.bodyshopbusiness.com
BodyShop Business Classified Help wanted • Business for sale Equipment for sale • Software... and so much more! Call Tom Staab today at 330-670-1234 ext. 224 Body Shop Inventory & Web Software by Rossknecht Software www.rossknecht.com
A Windows® inventory system for Body Shops that also salvage vehicles or have new/used parts to sell – vehicle and parts inventory, invoicing, reports, instant sales totals, bar-code labels, digital pictures, electronic catalog of body parts. NEW: Put your inventory on your Website included. No monthly fees. $895 complete. Free Demo CD. bpsales@rossknecht.com phone 303-884-5315
September 2012
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Publisher’s
Perspective It’s Our Party...
So Let’s Show Up! can hardly believe it’s that time of year again. NACE is right around the corner, and this year’s event in New Orleans promises to be excellent. It’s mind-boggling to see all the content and available activities on the agenda.
I
This meeting every year provides all of us in the collision sector with an exclusive identity and event to serve our individual needs. Whether it’s technical training, managerial counseling, new equipment needs or just information on industry trends, it’s all there under one roof. The Automotive Service Association and the event planners do an excellent job every year of finding the hot topics and products so you can stay as current and cutting edge as possible. New Orleans is a fun city that’s rich with history. Probably the only thing better than its history is the food. We’ve dedicated several pages in this issue (pgs. 58-62) to things to do and see while you’re in the Big Easy, and we hope you find it informative.
Speaking of history, this is also both BodyShop Business’s and NACE’s 30th anniversary. Together, both organizations have been serving you and the industry for 30 years. What better reason to get together and celebrate? Please stop by the BodyShop Business booth (N1129) on Friday, Oct. 12, from 2:30-4 p.m. and enjoy some refreshments with us. We’re looking forward to seeing you there. Not all industries have the luxury of having a dedicated trade show like NACE. It’s a tremendous asset to all of us. In order to realize its benefits, you need to attend. There’s plenty of time to make your plans and head for New Orleans.You won’t be sorry you did, and for those of you on the East Coast, it’s a lot shorter trip than next year’s location in Las Vegas. So let’s all make plans to meet at NACE. See you in N’awlins!
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
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