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Official Publication of the Washington Metropolitan Auto Body Association (WMABA)

TRANSCRIPT

Page 1: Hammer & Dolly April 2015

www.grecopublishing.com

www.wmaba.com

April 2015Volume 9, No. 4

$5.95

ALSO THIS ISSUECNN REPORT SPURS INTER-INDUSTRY DEBATEWMABA MEMBERSHIP PROMOTION:GET YOUR QUARTER BACK

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3April 2015

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Images © www.istockphoto.com

DEPARTMENTS6 Calendar of Events

10 Editor’s MessageJOEL GAUSTEN

12 Executive Director’s MessageJORDAN HENDLER

15 JERRY DALTONMEMORIALEDUCATION FUNDWMABA’s student scholarship application to cultivate thefuture of the auto repair industry.

24 Technician of theMonth: Steve MoorelandJACQUELYN BAUMAN

37 WMABA MembershipApplication

44 President’s MessageDON BEAVER

45 WMABA Board ofDirectors

50 Advertisers’ Index

5April 2015

LOCAL NEWSWIN CONVENTION COMING TO BALTIMORE Industry legend Mike Anderson joins the list of noteworthy speakers and events.

NATIONAL NEWSCNN REPORT SPURS INTER-INDUSTRY DEBATE, CALL FOR DOJ ACTIONPoliticians and industry leaders react to Anderson Cooper 360°. BY JOEL GAUSTEN

CONTENTSAPRIL 2015

32COVER STORYJOINING THE CONVERSATION:NEW MEMBERS SHARE ALLRecent additions to the association tell us what’s on their minds.BY JOEL GAUSTEN

14

22Words of wisdom in an era of cyber hacking.BY WHITNEY CLEAVER SMITH

LEGAL PERSPECTIVEARE YOU DOING ENOUGH TO PROTECT YOUR CUSTOMERS’ PERSONAL INFORMATION?

18

28Being careful means having the right Personal Protection Equipment.BY JOSEPH J. KENNY, II

VENDOR CORNERTHE ABCs OF PPE

38Food for thought on how to make more money from theshop floor. BY TED WILLIAMS, BUSINESS CONSULTING MANAGER, SHERWIN-WILLIAMS AUTOMOTIVE FINISHES

FEATUREPAINT & MATERIALS: A PATH TO PROFITABILITYIN YOUR COLLISION CENTER

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April 15, 2015SUSPENSION SYSTEMS

N T Auto Body Inc., Alexandria, VA

April 16, 2015ADHESIVE BONDING

Radley Chevrolet, Fredericksburg, VA

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Kunkel’s, Baltimore, MD

SQUEEZE-TYPE RESISTANCE SPOT WELDING

Frederick Co. Career & Tech, Frederick, MD

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE

COLLISION REPAIR PROCESS

Coxton’s Gold Team Collision Center, Yorktown, VA

WELDED & ADHESIVELY BONDED PANEL REPLACEMENT

Southern Collision Center, Chesapeake, VA

MEASURING

Refinish Solutions, Springfield, VA

April 20, 2015VEHICLE TECHNOLOGY & TRENDS 2015

First Team Toyota, Chesapeake, VA

April 21, 2015STEEL UNITIZED STRUCTURES, TECHNOLOGIES & REPAIR

Coxton’s Gold Team Collision Center, Yorktown, VA

COLOR THEORY, MIXING TONERS & TINTING

Keystone Linthicum, Linthicum, MD

MEASURING

Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA

April 22, 2015ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Refinish Solutions, Springfield, VA

April 23, 2015REPLACEMENT OF STEEL UNITIZED STRUCTURES

Refinish Solutions, Springfield, VA

STRUCTURAL STRAIGHTENING STEEL

Rosner Collision Center, Fredericksburg, VA

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS

Southern Collision Center, Chesapeake, VA

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Frederick Co. Career & Tech, Frederick, MD

VEHICLE TECHNOLOGY & TRENDS 2015

King Volkswagen, Gaithersburg, MD

April 27, 2015OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLI-

SION REPAIR PROCESS

First Team Toyota, Chesapeake, VA

April 30, 2015STRUCTURAL STRAIGHTENING STEEL

Coxton’s Gold Team Collision Center, Yorktown, VA

May 4, 2015AUTOMOTIVE FOAMS

First Team Toyota, Chesapeake, VA

May 5, 2015HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH

SAFETY

Criswell Collision Center, Annapolis, MD

ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE

ANALYSIS

State Farm Silver Spring, Silver Spring, MD

May 6, 2015CORROSION PROTECTION

Delcastle VoTech, Wilmington, DE

May 7, 2015VEHICLE TECHNOLOGY & TRENDS 2015

Coxton’s Gold Team Collision Center, Yorktown, VA

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Automotive Collision Technologies, Randallstown, MD

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Radley Chevrolet, Fredericksburg, VA

May 11, 2015WATERBORNE PRODUCTS, SYSTEMS & APPLICATION

First Team Toyota, Chesapeake, VA

May 12, 2015PLASTIC & COMPOSITE REPAIR

Harrison Body Works, Richmond, VA

REPLACEMENT OF STEEL UNITIZED STRUCTURES

Criswell Collision Center, Annapolis, MD

AUTOMOTIVE FOAMS

Coxton’s Gold Team Collision Center, Yorktown, VA

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Canby Motors Collision Repair, Aberdeen, MD

CALENDAR OFEVENTS

April 2, 2015FULL-FRAME PARTIAL REPLACEMENT

Refinish Solutions, Springfield, VA

FULL-FRAME PARTIAL REPLACEMENT

Coxton’s Gold Team Collision Center, Yorktown, VA

April 6, 2015PLASTIC & COMPOSITE REPAIR

First Team Toyota, Chesapeake, VA

April 7, 2015ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA

CORROSION PROTECTION

Coxton’s Gold Team Collision Center, Yorktown, VA

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

State Farm Silver Spring, Silver Spring, MD

April 8, 2015RACK & PINION & PARALLELOGRAM STEERING SYSTEMS

N T Auto Body Inc., Alexandria, VA

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE

COLLISION REPAIR PROCESS

Refinish Solutions, Springfield, VA

April 9, 2015ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Refinish Solutions, Springfield, VA

SQUEEZE-TYPE RESISTANCE SPOT WELDING

Automotive Collision Technologies, Randallstown, MD

SUSPENSION SYSTEMS

Southern Collision Center, Chesapeake, VA

RECYCLED PARTS FOR COLLISION REPAIR

Royal Collision, Richmond, VA

April 13, 2015 FULL-FRAME PARTIAL REPLACEMENT

First Team Toyota, Chesapeake, VA

April 14, 2015SQUEEZE-TYPE RESISTANCE SPOT WELDING

Canby Motors Collision Repair, Aberdeen, MD

6 April 2015

CLASS LISTINGS

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April 7, 2015SCRS Annual Election, Crowne Plaza Ravinia, Atlanta, GAFor more information, visit www.scrs.com

April 8, 2015Repairer Roundtable/SCRS Corporate Member and Industry Awards LuncheonCrowne Plaza Ravinia, Atlanta, GA For more information, visit www.scrs.com

April 8-9, 2015Collision Industry Conference, Crowne Plaza Ravinia, Atlanta, GAFor more information, visit www.ciclink.com

May 4-6, 2015Women’s Industry Network (WIN) Conference, Baltimore Waterfront Marriott, Baltimore, MDFor more information, visit www.womensindustrynetwork.com

May 13, 2015ADHESIVE BONDING

N T Auto Body Inc., Alexandria, VA

STRUCTURAL STRAIGHTENING STEEL

Delcastle VoTech, Wilmington, DE

PLASTIC & COMPOSITE REPAIR

Refinish Solutions, Springfield, VA

May 14, 2015FULL-FRAME PARTIAL REPLACEMENT

Frederick Co. Career & Tech, Frederick, MD

VEHICLE TECHNOLOGY & TRENDS 2015

Kunkel’s, Baltimore, MD

ADHESIVE BONDING

Southern Collision Center, Chesapeake, VA

SECTIONING OF STEEL UNITIZED STRUCTURES

Refinish Solutions, Springfield, VA

SUSPENSION SYSTEMS

Rosner Collision Center, Fredericksburg, VA

May 18, 2015HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH

SAFETY

First Team Toyota, Chesapeake, VA

May 19, 2015COLOR THEORY, MIXING TONERS & TINTING

Harrison Body Works, Richmond, VA

ADHESIVE BONDING

Keystone Linthicum, Linthicum, MD

STEERING & SUSPENSION DAMAGE ANALYSIS

Criswell Collision Center, Annapolis, MD

7April 2015

Industry training opportunitiesand don't-miss events.

www.i-car.com or (800) 422-7872 for info

May 20, 2015ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALY-

SIS

N T Auto Body Inc., Alexandria, VA

SUSPENSION SYSTEMS

Delcastle VoTech, Wilmington, DE

May 21, 2015ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

Southern Collision Center, Chesapeake, VA

ADHESIVE BONDING

King Volkswagen, Gaithersburg, MD

2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE

Frederick Co. Career & Tech, Frederick, MD

May 26, 20152015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE

Harrison Body Works, Richmond, VA

SUSPENSION SYSTEMS

Criswell Collision Center, Annapolis, MD

May 27, 2015CORROSION PROTECTION

Refinish Solutions, Springfield, VA

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Rodney Bolton ([email protected]) 410-969-3100 ext. 250Mark Boudreau ([email protected]) 703-671-2402Kevin Burt ([email protected]) 301-336-1140

RT Plate ([email protected]) 703-929-8050Phil Rice ([email protected]) 540-846-6617

ADMINISTRATIONEXECUTIVE DIRECTORJordan Hendler ([email protected]) 804-789-9649WMABA CORPORATE OFFICEP.O. Box 3157 • Mechanicsville, VA 23116

STAFFPUBLISHER Thomas Greco

[email protected]

DIRECTOR OF SALES Alicia [email protected]

EDITOR Joel [email protected]

MANAGING EDITOR Jacquelyn [email protected]

ART DIRECTOR Lea [email protected]

OFFICE MANAGER Donna [email protected]

PUBLISHED BY TGP, Inc.244 Chestnut St., Suite 202Nutley, NJ 07110973-667-6922 FAX 973-235-1963

Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily rep re sen ta tions of TGP Inc. orof the Washington Metropolitan Auto BodyAssociation (WMABA). Copyright © 2015Thomas Greco Publishing, Inc.

MISSION:MAINSTREAM

As a trade publication, Hammer & Dollyreceives numerous emails and phone callseach month from concerned and/or upsetmembers of the collision repair industry who arelooking to share their frustration over the stateof things in their shops. Every few months, I flyto a different city to attend the Collision IndustryConference (CIC), where members of thenational scene come together to identify andconfront issues impacting all industry stakehold-ers. Regionally, we at Hammer & Dolly see thesame kind of venting at events hosted byWMABA throughout the year. In all of theseinstances, people are voicing concerns to theirpeers or members of the industry at-large. Whatis typically missing from these meetings – andwhat the industry has spent years trying toencourage – is the mainstream media’s interestand participation. But if the first quarter of 2015has taught us anything, it is that the informationwall between shops and the public they serve isfinally starting to crumble.

Regardless of your opinion of the accuracyof the recent Anderson Cooper 360° report oninsurance practices in the auto body world, it isimpossible to deny that many in this industryare feeling the subsequent shockwaves.As you’ll read on page 18 of this issue, the

Joel Gausten(973) 600-9288

[email protected]

MESSAGEEDITOR’S

10 April 2015

WMABA OFFICERSPRESIDENT Don Beaver

[email protected] 443-539-4200 ext. 17061VICE PRESIDENT Torchy Chandler

[email protected] 410-309-2242TREASURER Mark Schaech Jr.

[email protected] 410-358-5155SECRETARY John Krauss

[email protected] 703-534-1818IMMEDIATE PAST PRESIDENT Barry Dorn

[email protected] 804-746-3928

BOARD OF DIRECTORS

response to the piece has been immediate and dramatic – and will likely continue to esca-late as the year carries on. Don’t be surprised if regional TV news affiliates in your area runsimilar stories in the weeks and months to come.

With the motoring public becoming more educated on their rights – and being mademore aware of the obstacles that sometimes stand in the way of a proper repair job – thedays of confining industry-related discussions to conference rooms are over. Finally, the no-torious tug of war between shops and insurers has officially been acknowledged for whatit has truly been all along – a consumer issue. Now more than ever, shop owners and tech-nicians need to consider their business decisions and repair procedures to ensure that driv-ers’ safety remains their greatest priority. If you know in your heart that you’re doing theright thing, then you have nothing to worry about. If you have doubts that your repairsmeasure up to industry standards, commit yourself to making changes today. With the waythings are going these days, you just never know if or when you’ll face the lens of a TVcamera. H&D

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with quality and completeness in mind. Thisis done in two ways: repair education (suchas I-CAR or ASE) and management or ad-ministrative education (such as ATI or withthe association).

Those of us in the education side ofthe industry are constantly trying to under-stand why many repairers have an allergicreaction to learning. Advancements in vehi-cle technology are leaving everyone in thedust. We can only hope to keep up. Stickingyour head in the sand doesn’t make theproblem go away, and it certainly will causeissues with your customers. Those with theculture of learning in their shop have madeit part of their standard operation, and with-out question or negotiation. This benefitseveryone. The side effect of having anuptick in morale with employees and

team-building are an added bonus. Anemployee who believes that his or her man-ager cares about him/her and continuingeducation is usually more productive andagreeable to betterment of the overallbusiness.

As an independent facility, you aremore aware of incoming trends and theoverall processes necessary to producethe results in efficient timeframes. ForDRP shops, it can improve their carrierrelationships by reductions in cycle timeand re-repair. Either way, it’s a happiercustomer. And isn’t that what it’s all about?

Get more! Give me a call! H&D

EXECUTIVE DIRECTOR’S Jordan Hendler(804) 789-9649

[email protected]

WHERE TOSPENDYOUR TIME

It has to be a breath of fresh air for repair-ers to have publicity of our issues on multiplemedia sites in recent history. It’s my opinion thatwe have a direct effect on customer satisfactionwith the overall claim process, and that this “tri-angle” relationship is getting a closer look.

Working to be a better example of profes-sionalism and dedication to the craft has beenpanning out “gold” for those who take the initia-tive. A growing chasm is separating those whohave stepped in and those who are draggingbehind. A couple of stand-out areas? Marketingand Education.

A Little Bit - of Marketing - Can Go a Long WayLooking at the various marketing methods

utilized by collision repairers of all sizes andtypes, I find that those who make an effort ex-perience definitive returns on that investment.Large or small, shops who take the time to buildan informative, navigable website, coupled withconsumer info and community involvement, turnthemselves into a repairer the public finds moretrustworthy.

But in order to be trustworthy, you need tobe someone they can truly trust. Really deter-mine who it is you model your business to-wards. If that is the car owners, then you needto brand yourself for them and their needs. If itis the insurers, then your marketing and brand-ing would take a far different approach. An iden-tity crisis can cause lasting headaches for allinvolved, so really take the time to understandyour foundation. Then, you can build from there.

Heading Back to “School”Drilling into the education realm, those

who put forth the commitment see a shift inshop mentality on correctly repairing vehicles

MESSAGE

12 April 2015

Check the website and newsletters for regular updates and reports from theExecutive Director’s Perspective.

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Industry awards ceremonyto reach the WMABA area.LOCAL

NEWS

14 April 2015

The Women’s Industry Network (WIN) isthrilled to announce that their ninth annualconference, themed “Create and Cultivate,” isbeing held May 4-6 at the beautiful BaltimoreWaterfront Marriott. This special event willfeature speakers and breakout sessions thatwill focus on opportunities for attendees todevelop their own personal success storiesthrough leadership, knowledge and relation-ships. The 2015 Educational Conference willfeature speakers covering organizational cul-ture, successful talent recruiting and timemanagement. Additionally, WIN’s presenta-tion of the Most Influential Women (MIW)awards will be held during the conferencegala dinner, recognizing women who havebeen nominated by their peers as outstand-ing business and civic leaders. The 2015WIN/MIW Scholarship winners will also berecognized, while the Annual ScholarshipWalk will raise money for the WIN Scholar-ship fund.

WMABA mainstay and legendary indus-try presenter Mike Anderson (CollisionAdvice)will be the keynote speaker at the 2015 Edu-cational Conference. His keynote address,“Choosing Your Destiny,” will offer inspirationand guidance for creating a success storythrough self-determination and motivation.

Industry consultant Mike Anderson will bethis year’s keynote speaker.

WIN CONVENTIONCOMING TO BALTIMORE

I would encourage anyone in our area to attend this meeting to gain some personal enrichment andnetwork with peers in the industry. It is a great place for those in our industry to rub elbows, makefriends and seek mentors.

- Jordan Hendler

Executive Director’s Thoughts

“I’m honored to speak at WIN because Ithink it’s a really unique organization,” Ander-son tells Hammer & Dolly. “At this point in mycareer, I just want to encourage people and letthem know there is hope in the industry.”

A former shop owner now working as aconsultant, Anderson has consistently hiredfemale employees throughout his career, withwomen often comprising the majority of hisstaff.

“I believe there’s a great opportunity forwomen in [this field],” he says, “Everybody istalking about the technician shortage [in theindustry], but I think sometimes we have goodcandidates right in front of us. We’re just notlooking.”

With WIN nearing its 10th anniversary, WIN Board of Directors Chair Denise Caspersonfeels that the women are serving a greater-than-ever role in the ongoing health and successof the automotive community.

“Women have historically been a vital element of the collision repair industry, from theco-ownership of family-owned collision repair businesses to the strategic minds of materialvendors, the associates within rental car companies, the agents of insurance, the instructorsof repair techniques and technology and the CEO of one of the world’s largest automobilemanufacturers, General Motors,” she says. “WIN is excited to see the visibility and influenceof women in the collision industry continue to increase and advance within all segments ofcollision repair.”

Of course, one of the greatest moments of this upcoming WIN event will be the presen-tation of the Most Influential Women Awards.

“The ‘Most Influential Women in the Collision Industry’ exemplify women who have en-riched the industry with their leadership, vision, and commitment to excellence,” Caspersonsays. “The honorees have held positions in every facet of the collision repair industry. Theprogram has recognized women for their professional accomplishments, but also for goingbeyond the requirements of their positions to give back to their communities. Since 1999,nearly 80 women, all recognized as leaders and meeting the criteria of Most Influential, havebeen recognized. In 2014, WMABA’s very own Jordan Hendler became a Most InfluentialWoman recipient. Beyond the areas [already mentioned], the common characteristic of allMIWs is the impacts they have made on the collision repair industry.”

For more information, go to www.womensindustrynetwork.com and click on “Conference.” H&D

WMABA Executive Director Jordan Hendlerand her father, Jeff, after she received

a "Most Influential Women in the Collision In-dustry" award at last year's ceremony.

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NATIONALNEWS

Considering the explosive nature of theFebruary 11 Anderson Cooper 360° investigationinto allegations of steering and unsafe partsusage within the auto insurance industry(http://tinyurl.com/CNNCheapRepairs), itshould come as no surprise that everyone frominsurers to lawmakers have had something tosay about it.

In addition to being featured in the CNNbroadcast, US Senator Richard Blumenthal (D-CT)sent a letter to Attorney General Eric Holder twodays after the show aired, urging the Department ofJustice (DOJ) to investigate the issues raised byCNN Investigative Correspondent Drew Griffin.

“Contrary to what consumers may be led tobelieve by their insurers, repair shops preferred byinsurers do not necessarily equate with quality re-pairs,” Blumenthal wrote in the correspondence. “Itseems to be common knowledge among auto re-pair shops that the best way to land a coveted spoton an insurer’s preferred list is not necessarily bydelivering consistent, quality service, but by agree-ing to charge below-market Labor Rates and usecheaper, salvaged, used or even counterfeit partsof questionable quality and safety.”

On February 23, the Automotive Recyclers As-sociation (ARA) - a group that “represents over

CNN REPORTSPURS INTER-INDUSTRY DEBATE, CALLFOR DOJ ACTION

April 2015

4,500 professional automotive recyclers across the UnitedStates and in 14 countries internationally” - sent Senator Blu-menthal a letter expressing “serious concern” over his state-ments to Attorney General Holder and fiercely defended theautomobile recycling industry’s ability to provide the motoringpublic with safe, dependable products. In addition to noting that the “reutilization ofquality, OEM automotive parts” is a $32 billion business in the US, ARA CEO MichaelWilson stressed that professional automotive recyclers “have robust product assuranceand quality control procedures in place to identify parts that do not meet industry ac-cepted standards,” thus distinguishing their products from the “junkyard” parts detailedin the CNN segment.

“What is missing in the CNN segment and in your comments is the recognition ofthe critical economic and environmental role that the recycled, original equipment man-ufacturer (OEM) parts sold by ARA member facilities play in the market,” he wrote to theSenator. “Their existence in the marketplace provides consumers an important alterna-tive to expensive ‘new’ OEM parts.

“It is critical for our nation’s policymakers to help consumers understand the differ-ent options in the automotive parts supply chain and the various market motivationsthat exist,” he added. “Armed with this knowledge, CNN viewers and others can bebetter informed and will understand that some body shops also engage in the practiceof ‘steering’ consumers to utilize only brand new OEM parts instead of using more

US Senator Richard Blumenthal (D-CT) takeshis comments on the CNN report to the DOJ.

Photo courtesy of www.blumenthal.senate.gov

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economical quality, recycled OEM parts - partsthat are just as proper or even more appropri-ate for a particular repair.”

In an effort to further demonstrate the ap-propriateness of quality recycled parts, Wilsonnoted that the West Virginia Supreme Court ofAppeals recently “affirmed the use ofsalvage/recycled OEM crash parts in vehiclerepairs, found that recycled parts are diametri-cally different from aftermarket parts and ap-plauded automotive insurers for usingmeasures to reduce premium costs for theircustomers.” Wilson made a similar argumentlate last year in a statement responding toLouisiana Attorney General James D. “Buddy”Caldwell’s use of the phrase “junkyard parts”when describing his high-profile lawsuit againstState Farm (“Attorneys General Take On Steer-ing, ‘Junkyard’ Parts,” H&D, January 2015).

Although State Farm refused to grant CNNan interview for inclusion in the report, the in-surer issued a statement to the network that“customers choose where their vehicles aregoing to be repaired,” and that the companyprovides “information about our Select Serviceprogram while at the same time making it clearthey can select which shop will do the work.”

Following the airing of the CNN piece,State Farm Spokesperson Dick Luedke said ina statement that the carrier was unhappy withGriffin’s coverage of the current 36-state suitlaunched by more than 500 body shops againstmultiple insurers across the US:

We are disappointed that CNN did not chooseto report what [the industry has] already re-ported, that all of the counts in the MultidistrictLitigation in Florida that are specific to the stateof Florida have been dismissed twice, althoughthe court has permitted the Florida plaintiffs athird chance to replead...We did make CNNaware of those rulings. H&D

Reactions to the CNN reportreach the government.

BY JOEL GAUSTENIt is great to see debates in our industry taking place in a more public atmosphere. Our industry has been quarreling in rooms like CIC for a long time, but to have media coveragefor the consumer is a welcome change. There are problems here, and they have longneeded to be addressed.

- Jordan Hendler

Executive Director’s Thoughts

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BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161Phone: 410-689-3038Fax: 410-766-1275www.bobbell.com

WALDORF FORD2440 CRAIN HWY, WALDORF, MD 20601Phone: 301-843-3028Fax: 301-843-0334e-mail: [email protected]

TED BRITT FORD11165 FAIRFAX BLVD, FAIRFAX, VA 22030Phone: 703-673-2420Fax: 703-870-7982www.tedbrittparts.com

PLAZA FORD1701 BEL AIR RD, BEL AIR, MD 21014Phone: 410-879-3367Fax: 410-877-7248www.plazaford.com

SHEEHY FORD5000 AUTH RD, MARLOW HEIGHTS, MD 20746Phone: 301-899-6300Fax: 301-702-3650www.sheehyford.com

HAGERSTOWN FORD1714 MASSEY BLVD,HAGERSTOWN, MD 21740Phone: 800-200-0276Fax: 301-733-0603www.hagerstownford.com

KOONS FORD OF ANNAPOLIS2540 RIVA ROADANNAPOLIS, MD 21401Phone: 410-266-3083Fax: 410-224-4239www.koonsford.com

Contact these Ford or Lincoln Mercury dealers for all your parts needs:

© 2014, Ford Motor Company21April 2015

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ARE YOU DOING ENOUGH TO PROTECT YOUR CUSTOMERS’ PERSONALINFORMATION?

It seems like each week you hear a news story of a Fortune 500corporation being hacked. Target, Home Depot and Apple are justthree of a large number of companies who had their customers’

sensitive financial information hacked in 2014. As our reliance ontechnology grows larger, the more information businesses keep oncomputers and in the Cloud. This includes credit card numbers, socialsecurity numbers, addresses and other information that businessesneed to function. However, it is not just customer information; busi-nesses need employee information as well for payroll and tax pur-poses. Obviously, individuals or groups can be charged with criminalpenalties for stealing information from these companies, but whatabout the companies themselves? Do they owe any duty to their cus-tomers to protect that information from hackers?

The answer is yes. Under general principles of negligence, abusiness owes a level of care that a “reasonable person” in theposition of the business would provide in protecting their customers’information. What a “reasonable person” does is a little harder to de-fine, but it is not from lack of trying on the part of the judicial system.One of the fastest areas of growth in class action lawsuits nationallyright now is from commercial customers affected by large securitybreaches.

In addition to common negligence claims, many states createdspecific causes of action that allow individuals who have had their in-formation taken to be compensated for that breach. In Virginia, it is anunlawful invasion of a person’s privacy to look at personal informa-tion. In Maryland, invasion of privacy is a tort, which allows the victimto recover for any damage that it caused them. An employer must notonly guard against hacks from outside sources to some reasonableextent, but they need to have safeguards in place to prevent employ-ees from accessing personal information that they would not normally

PERSPECTIVELEGAL

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23April 2015

What’s happening at the State House, inyour industry and everywhere in between.

BY WHITNEY CLEAVER SMITH,Attorney, The Law Officesof Alexander & Cleaver

have access to. If an employee steals the information of a customer or ofanother employee, the employer could potentially be liable if the com-pany had no safeguard in place to avoid those types of breaches.

A company that suffers a breach could also face government finesin addition to lawsuits from angry customers. The Federal Trade Com-mission states that individuals have an expectation that a company willtake reasonable steps to protect customer information and if the com-pany fails to take those steps, it could face fines. In addition, federal lawrequires that companies truncate the credit card information on receipts.Failure to do so could also result in fines.

Most states, including Maryland, DC and Virginia, instituted laws re-quiring that companies report breaches in security to the affected cus-tomers. In Maryland, companies must take steps to reasonably protectcustomers’ sensitive information, conduct a prompt investigation uponevidence of a security breach and notify customers if the investigationshows a reasonable chance the data will be misused. Violation of theserules will be deemed to be unfair or deceptive trade practices under theMaryland Consumer Protection Act and could result in criminal penalties.

In Virginia, companies that reasonably believe that sensitive infor-mation has been accessed or acquired must notify the affected individu-als as well as the Office of the Attorney General. In DC, companies mustnotify customers and consumer reporting agencies of any breach. Fail-ure to comply with either of these statutes could result in fines.

If you are concerned with the level of protection you currently havein place, please contact me at Alexander & Cleaver. My business/com-mercial law practice consists of corporate governance, employment andtransactions, and I assist clients in forming new businesses and manag-ing risk. H&D

Whitney Cleaver Smith focuses her practice inAlexander & Cleaver's Business Law and EstatePlanning Practice Groups. In the Business LawPractice Group, she focuses her practice on cor-porate governance, employment and transactions.She has assisted clients in forming new busi-nesses and managing risk.

For more information, please contact WhitneyCleaver Smith at [email protected] or (301) 292-3300.

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24 April 2015

Thomas Edison once said, “The three great essentials to achieveanything worthwhile are: Hard work, stick-to-itiveness and commonsense.” At Advantage Collision Repair, Inc. in Portsmouth, VA, there isone technician for whom this is absolutely the truth.

Steve Mooreland has been involved in the collision repair industryfor almost longer than he can remember. Like many others in the field,the automotive repair bug bit him as a kid, when he would watch his fa-ther work on his own cars. At his high school, they offered an autobody collision repair course that was irresistible to Mooreland, and itwas here that he created the foundation upon which he would laterbuild his passion. Around 1980, Mooreland got a position at Church-land Auto Body, working his way through the ranks and learning every-thing he could about the collision repair process. In 2001, he got a callfrom an old colleague, Steve Benton, who offered him a position at Ad-vantage Collision Repair, which is where he has been ever since.

“In all of the years I’ve been doing this, I think my favorite thingabout the job is the people,” Mooreland says. “Things have changedwhen it comes to the cars; they’re way more technical these days. Thatdoesn’t make it less fun, but it does make it a little more difficult. Butone thing that hasn’t changed is the enjoyment I get from coming inand being out on the lot or in the shop with the guys.”

Even though Mooreland has put in over three decades in the in-dustry, he still remains humble about his talents and his experience.

“We have a lot of great technicians at the shop,” he explains. “Idon’t know why, out of everyone, I was the one nominated for Techni-cian of the Month, but it does feel good to get recognized after all ofthese years. I don’t know if I’m the best, but I definitely take pride in mywork.”

Even though life isn’t all about automotive repair for Mooreland,cars still do dominate even most of his down time.

“When I’m not at the shop, I like to head to the local racetrack withfriends,” he says. “And if I’m not there, I like to visit my friend’s farm outwest and go four-wheeling, fishing, hunting and camping.”

Based on his background in the field of collision repair, Moorelandhas a lot to say to up-and-coming technicians who want to achieve thesame level of success.

“You have a to have a good disposition,” he states. “You have tobe patient, and find ways to keep yourself interested in the field. Thingsare always changing, so you have to get some kind of formal training tostay ahead of the curve. But above all, enjoy what you do.”

Mooreland believes he would not be where he is today without thehelp of many of the people he has come in contact with along the way,especially the owner of his first place of employment, Fred Bailey, andhis current manager, Steve Benton, who nominated him for the recog-nition of Technician of the Month. He wishes to express his gratitude toboth of them. H&D

THE MONTHTECHNICIAN OF

STEVEMOORELAND

BY JACQUELYN BAUMAN

If you would like to nominate someone as Technician ofthe Month, please contactHammer & Dolly Editor Joel

Gausten at [email protected]

Hammer & Dolly chats with theWMABA community’s best and brightest.

Steve Mooreland has spent nearlyhalf of his more than 30-year career with Advantage Collision Center, Inc.

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Since my last article regarding respirators(“The Importance of Respiratory Equipment,”H&D, December 2014), I have received a fewemails with questions regarding other safetyequipment, namely Personal Protective Equip-ment (PPE).

The Ebola epidemic in West Africa(which, thankfully, seems to have subsided)and subsequent exposures here in the USmade PPE a subject on everyone’s mind.Soon after, nursing organizations were voicingconcerns about the lack of proper PPE pro-vided – and the lack of training to use it.

Just having PPE is not good enough.Without proper training, PPE can actually in-crease the hazard to the user. When it comesto PPE, there’s nothing worse than thinkingyou’re protected.

OSHA’s PPE standard has several re-quirements: Hazard assessment, training andwho pays for what. Compliance with the regu-lation requires you to understand and docu-ment each piece.

Choosing the right PPE means knowingthe hazard. A formal Hazard Assessment mustbe conducted (and re-evaluated annually) todetermine hazardous tasks in the workplaceand the correct PPE for each. Once you haveidentified a hazard, try to minimize or eliminateit so that PPE may not even be necessary.Choosing less harmful chemicals, providingadequate ventilation or enclosing the hazardare all effective strategies to achieve this goal.

If elimination is not an option, the bestsource of information for selecting the rightPPE, including respirators, is the product’sSafety Data Sheet. Using knowledge of theirproduct and associated hazards, the manufac-turer advises end-users on required safetyequipment and safe exposure levels. For ex-ample, while safety glasses provide eye pro-tection against some hazards, they would beuseless for a task like welding.

Employees must receive regular trainingabout the proper use and care of their PPE.It’s critical that they understand the limitationsas well. To be effective, Personal ProtectiveEquipment, which is the last barrier betweenthe user and a hazard, must actually beworn! Most injuries involving the eyes and

hands could have been avoided simply bywearing the proper PPE.

I recently met a technician who waswearing an eye patch. As a safety guy, I could-n’t resist asking him what happened. He toldme he was wearing his safety glasses when apiece of steel flew off of his grinding wheel,but they were on top of his head! He added,“I don’t understand; I never had a problem be-fore.”

The most common question associatedwith this regulation is, “Who pays?” In 2008,OSHA clarified that the employer must pay forsafety equipment necessary to protect em-ployees. Good protective equipment is notcheap, but it’s a lot less expensive than aworkers’ comp claim. Everyday work clothesand PPE that has been lost or destroyed bythe employee are two notable exceptions to

this rule.With all OSHA regulations, proper docu-

mentation is crucial. You must have a writtenPPE program with your company’s policiesand procedures, a hazard assessment andrecords of training.

I hope this information is useful in makingyour workplace safer. If you have any ques-tions, give me a call. H&D

Joseph J. Kenny, II is president of Safety Reg-ulation Strategies, Inc., a nationwide safetyand environmental training and consultingfirm. He has helped thousands of businessescreate safe and compliant workplaces, andcan be reached at (800) 723-3734 or on theWeb at www.SafetyRegulations.com.

A view from the supplierside of the industry. VENDOR

CORNER BY JOSEPH J. KENNY, II

THE ABCs OF PPE

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COVER STORY

JOINING THE CONVERSATION:New Members Share All

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Although the difficult winter that just (and finally!) passed and the various legal proceedings happening nationally received much of the attention in the auto body news world during the first quarter of 2015, anotherbig story hit the WMABA region in recent months. Helped along greatly by WMABA’s recent efforts to bring new

kinds of education to the region (including last December’s presentation at the Audi Learning Center in Ashburn,VA), the association is currently experiencing a surge of new memberships from area shops. This month,

Hammer & Dolly offers an inside look into the wants, needs and expectations of two of these businesses – andwhy they have turned to WMABA for help. Whether you’ve just joined WMABA or have been with the group fordecades, you will surely share in the hopes, obstacles, concerns and ambitions expressed in this feature.

A growth in membersadds new voices to the cause.

BY JOEL GAUSTEN

A New Life As any satisfied WMABA member will tell you, there’s

much more to getting the most out of the association expe-rience than simply sending in your dues once a year. Find-ing success in WMABA – and in the industry itself – meansputting in the time and effort necessary to stay involved,educated and active. If you’re a large shop owner whothinks you’re simply too busy to do these things, you needto have a look at what new WMABA member CharlesBourne III (B&W Auto Body) is able to accomplish in a day.

Since February 2012, the Charlottesville-based shopowner has attended more than 100 I-CAR classes, some-times traveling up to four hours to be there. This feat iseven more impressive when you consider that this 36-yearindustry veteran works out of a modest 2,500 square footshop that can fit five cars on a good day. With nine yearsin business for himself, he currently utilizes a four-personfull-time staff including his son Sheldon. Clearly, Bourne’sdays are pretty full, so why would he add so much more tohis plate by being so engaged in his industry? Because inBourne’s world, it is a matter of life and death.

In November 2011, Bourne was diagnosed with a po-tentially fatal illness and prepared his family for the worst.After a miraculous recovery, he found himself doing a lot ofsoul searching. It wasn’t long before his attention moved tochanging his day-to-day work in his profession.

“I realized that, at that point in my life, if I didn’t makesome business decisions, I wouldn’t be around in businessthe next three to five years because of the way the autobody industry was going,” he says.

By the following spring, he had taken his first I-CARclass since 2001 and hasn’t looked back since.

“Most people don’t understand the importance oftraining and the information out there,” he says of I-CAR’scurrent offerings. “The information that I-CAR has givenme has allowed me to write a stronger estimate and understand how vehicles need to be repaired and the tools

I need. If I had to recommend training for every shop, mostlikely I would say, ‘Let’s start with the estimators first sothey know how the vehicle is repaired.’”

Recently, Bourne added to his toolbox of knowledgein a huge way by joining WMABA – the latest step in hismeaningful journey to becoming the strongest industry pro-fessional he can be.

“The association is really trying to empower the shopowners, but also the legislation they’ve tried to get throughis really impressive,” he says. “I try to support what’s goingon.”

Bourne's dedication to WMABA is in line with his on-going commitment to bettering his life. A military vet andhigh school dropout, he hired a tutor to help him get hisGED in 1996 after he learned that he read and wrote at athird-grade level. Ever since his business was established,he has used it as a way to help his fellow man and main-tain his firm Christian values and faith in God.

“B&W Auto Body does a lot more than fix cars,” hesays. “People donate cars to us, and we repair them andgive them away. We also sponsor mission trips to Liberiain West Africa, where I go on a regular basis.”

Looking ahead, Bourne is hopeful that WMABA willfocus its energy to fighting perhaps the biggest collision re-pair industry issue of all: steering. Unsurprisingly, Bourne’sshop size makes him particularly susceptible to the trend.

“As a small, independent repair facility, you are com-peting against the DRPs whether you want to accept thator not,” he says. “A customer makes that 800 call upfrontto report your claim, and if that consumer doesn’t knowwhat’s going on, it doesn’t matter how many times you’verepaired their vehicle in the past - they will be steered.”

In one of the most outrageous examples of steeringever documented in Hammer & Dolly, Bourne says that thedaughter of the previous owner of his shop was steeredaway from her own family’s business by the insurancecompany. When it comes to pushing customers to use

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their facilities, insurance companies will apparently stop at nothing toreach their objectives.

“An older lady at our church was told that she had to take her Priusto the dealer because it was a hybrid,” he shares. “That’s what I’m upagainst. It’s a challenge to get the word out to my customer base thatthey have a choice.”

Despite experiencing these all-too-common obstacles, Bourne isfinding success – and considerable recognition – in his field. A car en-thusiast who painted his first car at 11, he was the proud recipient of aDuPont/ASE Master Refinish Technician of the Year Award in 2012. Ad-ditionally, his son Sheldon is proud to have earned I-CAR Platinum sta-tus. After so many years in the business, Bourne is enjoying his besttimes in the here and now. There’s just one more thing Hammer & Dollyneeded to ask: How did he come up with the name “B&W Auto Body”?

“It’s the reason I go to work every day,” he reveals. “Seven boysand one wife!”

Preparing for the FutureLike Bourne’s operation, D&V Autobody in Dulles, VA is a true fam-

ily affair. Founded in 1986 by Dave and Vena Maharaj, the shop cur-rently operates under the guidance of their sons, Kevin and Ron, withtheir daughter, Jenna, handling the administrative side of things. Al-though D&V currently stands as an 18,000-square-foot facility (includinga 2,500-square-foot office) with 51 employees, the business certainlydidn’t start out that way.

“It could not be more of a mom-and-pop situation,” says Kevin ofthe family’s original 5,000-square-foot shop in Chantilly. “We literallywere behind my parents’ home for the first 20 years of the business. Thearea that we were in was zoned both residentially and commercially, soit allowed a mixed use.”

By 2006, the business’ success and popularity in the area necessi-tated a move to their current location, a great spot in the Dulles Airportarea that offers fantastic road frontage. One year shy of their 10th an-niversary in their state-of-the-art facility, the Maharaj family continues toreach new heights in the industry thanks to an unwavering focus on cus-tomer service, high quality standards and efficiency.

“In our opinion, the primary factor is the customer service,” he ex-plains. “There’s no question that quality is expected; what’s not expectedin our industry is any level of customer service. Unfortunately, we don’t

have a knack for customer service in general [in our industry]. Early onin the game, we all just had a collective choice to make to serve our cus-tomers the way that we would expect to be served at any place –whether it’s a fine restaurant or the grocery store. We wanted to extend[a high level of service] to our customers.”

Recently, D&V Autobody began an exciting new chapter in their cel-ebrated history by joining WMABA. As the shop continues to developnew strategies to survive and prosper today and in the years to come,Kevin believes that the association serves as a fantastic way to gatherimportant knowledge and put it to use.

“I was looking for ways to further our means of business develop-ment and communicating with an outside influence,” he says of becom-ing a part of the WMABA community. “I need to be immersed insomething that’s larger than us.”

Of course, there couldn’t have been a better time for D&V to join.With everything from aluminum and carbon fiber to increased special-ized training and certifying entities like the Assured Performance Net-work changing how shops are run, Kevin is thrilled to be a part of “agoverning body that’s going to be willing and able to help us get oversome of the hurdles.” Additionally, he says that the association is “doinga great job of bringing the shortcomings of our industry to the forefront”by helping members become better technicians, owners and managersthrough training.

Now that his family’s long-running shop is under the WMABA um-brella, what is Kevin’s greatest expectation as a member?

“My expectation moving ahead would be to have someone I canrely on - someone I could lean on for legislation in terms of helping smallindependents who do not have deep pockets like dealership-based bodyshops,” he replies. “Basically, [I want] someone to speak up for the littleguy.”

As more and more shops throughout the region are discovering,WMABA is a way for repair professionals to get the answers and direc-tion they need to maneuver the changes constantly occurring aroundthem. With 2015 far from over, the association looks forward to welcom-ing many more new members (both shops and vendors) wiling to jointhe effort to secure the best possible future for the collision repair indus-try. More information on membership (including how to join at a reducedrate) is available on page 37. H&D

COVER STORY

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Conquest your Mitsubishi parts needs!

Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems.

Ultra-Conquest Collision Parts Program Highlights:

• Discounted prices on quality new and unblemished OEM parts• Automated price and part selection in collision estimating systems• High parts availability• Delivery to most major U.S. cities within 24 hours• Available through all participating Northeastern area Mitsubishi dealers• Includes the majority of key collision components for select popular models• We can meet or beat aftermarket prices!

To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer.

For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers.

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[email protected]

35April 2015

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WMABA MEMBERSHIP PROMOTION:GET YOUR QUARTER BACK

There has not been a better opportunity to join WMABA in thepast 10 years than right now. For the first quarter of 2015, the associ-ation is offering a special membership promotion for new members. Ifyou’re reading this, your first benefit is already being realized: Stayingup on the news in our area and beyond. You can save $200 off an an-nual membership ($700 regular price) or get one free quarter (a $195value) with the first quarter payment. Savings like this have not beenavailable in more than a decade!

Get Your Team JerseySupporting WMABA is an investment in the future of your busi-

ness and your industry. By becoming a member, you are representedin all of the places the Board or executive director goes. Whether at atrade show like SEMA, assisting with the SCRS OEM TechnologySummit regarding certified repairs or locally at the state capitol meet-ing legislators or testifying at a hearing, your interests – and the inter-ests of all repairers – are at the forefront of WMABA’s agenda.Though repairers often feel competitive, the association is a place forcamaraderie and community. Here, we’re all on the same team.

Get EducatedWMABA offers issue-specific topic-driven education throughout

the year. Participation in special events, such as the December 10limited-seating seminar and tour at the Audi Training Center, offeryour business the best opportunities to advance your understandingof changes within our industry.

The PlaybookThe association is your resource for all things. Whether you have

a question about current Labor Rate data, operations, customer inter-action, insurer relationships, vendor products or national news, yourassociation is the place to ask first. Through our national relation-ships, we are able to take issues to the foreground of places such asthe Society of Collision Repair Specialists, Collision Industry Confer-ence or to national contacts for insurers and vendors.

Locally, we research government regulations and oversight tomake sure the repair industry is protected from negative legislation.Represented in both Virginia and Maryland, WMABA proposes andopposes recommended bills that come into the legislature duringopen session. Also, we work with consumer-related entities, govern-ment agencies and other related industry organizations to ensure thatthe voices of the repairer and their customer are heard.

Many repairers take advantage of the knowledge and communitythat the association provides for navigating situations that arise. Asimple phone call or email can circumvent many of our members’issues.

Call the GameAs a member, you decide your personal level of participation. Do

you have an interest in committees that address particular issuesabout which you feel passionately? Would you want to be a Boardmember and assist in guiding the direction of the association? Howabout even sitting on the sidelines so you can focus on your ownbusiness? A positive answer to any of these questions is what we’relooking for! While WMABA would like to encourage your spirit of vol-unteerism, it is solely up to you at what level you get involved. H&D

Find more association updates atwww.wmaba.com.WHAT’S

UP TO?

The minimum is getting yourmembership. The upcomingyear can start off with yourcommitment to the bettermentof your business and your industry. SIGN UP TODAY!

Save $200 Off Annual Membership or get

One Quarter Free!MEMBER TESTIMONIALS

The two obvious benefits of belonging toWMABA are: 1) Keeping up-to-date on indus-try events, challenges and technical changes,and 2) Networking with industry shop ownersand vendors. The not-so-obvious benefit isthat we as shop owners can unify to make achange. Being a member assures each of usthat we are not ‘the only one’ dealing withthese issues. WMABA is the only associationfocused on making this industry better for thecollision shop owners and technicians. Noother organization can make that claim. Mostof them just follow the money. Put yourmoney where it counts – join WMABA! - Bill Denny, Bill Denny’s Automotive, Inc., Havre de Grace, MD

WMABA keeps us in touch with what ishappening in our industry, from class actionlawsuits to pending legislation in our stateand the whole country. Our membership helpsus remember that we are not the only onesfacing the discouraging burdens and issuesout there. It reminds us that if we all stick to-gether we can make a change for the better.Their coverage of PartsTrader, well before ithit home, was invaluable. They even went tothe State and tried to make it unlawful for in-surance companies to require it. They areworking hard for us, on things that all bodyshop owners care deeply about, but don’thave the time to stand up and fight.- Barbara Chase, Sisk Auto Body, Owings, MD

I joined WMABA the very first year Iopened my shop. I was immediately embracedby both colleagues and mentors who pro-vided me the fellowship to know I wasn't theonly one facing the challenges before me,advice that provided clarity and confidence tomake the decisions that would guide mybusiness and a network that I could call onrepeatedly over the years I have been a mem-ber. WMABA's ability to educate the collisionrepair industry, speak on its behalf and lobbyfor issues that affect it has been - and is tothis day - the greatest value I have receivedfrom any association of which I have been amember.- Mark Boudreau, Spectrum Collision Center,Arlington, VA

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FEATURE

38 April 2015

Successful collision centers have a constant focus on efficiency and gross profit improvement.Gone are the days where profitability could co-exist with waste in a facility. Today, a collision center isrequired to focus on continuous process improvement in order to develop their business. Some of thesefocus areas include a 100-percent accurate repair analysis, part correctness, express repair and seg-mentation of labor. Considering all of the potential areas for improvement in your collision center, whywould you not first consider a fresh look at paint and material profitability? Here are some benefits todoing so:

The shop has direct control over the items that impact paint and material profitability.The process around paint and material profitability teaches the shop lean principles.The shop can quickly see and measure the results of their efforts.

Let’s start with understanding where your results currently stand. To truly benchmark your results,you should consider adding all associated products used in the vehicle repair such as fillers, abrasivesand tapes to the paint purchases. The reason for this is that insurance reimbursement is calculated onpaint labor hours. This is the main source of reimbursement for all of the supplies used on the vehicle.Not including these items gives the shop a false sense of profitability. Exceptions to the list of associ-ated products to be calculated into paint and materials should be tools and items such as adhesivesthat can be itemized on an estimate.

Using a combined number for paint and material purchases, you should then benchmark yourresults. Industry benchmarks for paint and material cost should be five percent or less of total revenueincluding parts. Paint and material revenue should be 10 percent or more of total revenue includingparts. In this scenario, profit is five percent of total revenue including parts.

Ironically, the material profit in most shops is equal to half or more of their total net profit.

Here’s how you change your results:

Paint materials reimbursements are based on paint labor hours sold, so estimating is critical. Invest in training your estimators to write complete estimates. Understand the estimating database. What is included and not included? I tend to leave shops

printed copies of the Estimating Guides for their database provider. Damage Analysis and Blueprinting of the vehicle leads to more accurate estimates and less

supplements.Involve shop experts in estimating. Body techs and painters should map out the repair at the be-

ginning with the estimator. Color and repair processes should be verified by the painter before thevehicle enters production.

PAINT AND MATERIALS:A Path to Profitability in YourCollision Center

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39April 2015

Guest insight fromSherwin-Williams.

BY TED WILLIAMS, BUSINESS CONSULTING MANAGER,

SHERWIN-WILLIAMS AUTOMOTIVE FINISHES

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40 April 2015

Ask for what you really need, but not more. Be clear and doc-ument needed procedures for the insurer. This builds a trustingpartnership.

Specified Approved Material List Define a list of approved products built around best demon-

strated practices for the repair. Focus on items where cost and quality intersect. Never downgrade products that are delivered to the customer

on the vehicle.Cheap is not better if it causes additional labor operations to

correct shortfalls (more buffing, cleaning redos, etc.).Bar-coded ordering systems minimize inventory, eliminate or-

dering mistakes and reinforce adherence to approved lists ofproducts.

Measurement Track any redos and institute a program to address the

source. Mix history of paint products should be tracked and measured.Use a suggested mix-by-RO-hours feature to increase accu-

racy of mixing the right amount for the repair.

Maintain accountability for results. Recognizing good behavioris equally important as pointing out the bad. Employ KPIs to measure improvements and identify areas of

improvement. Use technology such as smart scales to eliminate waste.

Application Refine product application techniques for best results. Use the

right equipment and techniques for the right job. Learn to spray basecoat to hiding. Technicians often over-

apply waterborne basecoat after coverage has been achieved.Use tinted or similar color undercoats to achieve coverage. Have your painters trained on a regularly scheduled basis.

One final area to look at is an aggressive repair-versus-replacementality on plastic parts. The collision databases have not kept pacewith the growth in surface area of today’s front and rear covers. Inmany cases, a shop may lose money on materials for every completecover they refinish. If just a portion of the covers were repaired, youcould significantly reduce the cost of paint materials. This programalso has the ability to lower severity while driving up margins throughlabor procedures.

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It Takes a Strong Coach to Win.Not all paint suppliers are alike. Look for

a paint and material vendor that has the abil-ity to coach you through a material profitabil-ity process and wants to be your partner onthe journey. The best vendor is one whoseculture is built around the interest of the part-nership. Look for these other attributes in agood paint partner:

Willingness to work with your team onyour shop floorMentality of selling the customer no

more than what they needHave tools available to improve

resultsInvested in providing the training your

shop needsFocused on providing daily coaching

and support to help you grow and develop your businessStaffed with a factory-trained,

knowledgeable support structure to provide results.

In a competitive market, shops have toinvest to grow. If they are not profitable, thenthey cannot invest. Paint and materials area great starting point for a profitable, continu-ous improvement process in your collisioncenter. H&D

Ted Williams is a second-generation collision repairer andformer Skills USA/VICACollision Repair Champion. He has 26years’ experience in thecollision repair industryand developed Sherwin-Williams’ Secrets ofMaterial Profitability Revealed curriculum.This course is scheduled upon request to the Sherwin-Williams Automotive FinishesBusiness Consulting Services Team.

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GAME OVERIt has to end soon. Insurance

companies beat and beat and beat onshops over CSI, cycle time and costcontainment. However, their arrogantattitudes toward repairers seem tohinder just that. Any repairer worth a hillof beans knows that it rarely does anygood to “pre-order” parts for a repair. Inactuality, a vehicle needs to be broughtinto a shop for teardown and blueprint.Despite this, insurance companies think

MESSAGEPRESIDENT’S Don Beaver

(443) 539-4200 ext. [email protected]

they know best. As a result, time (which is a commodity) and manpower are wasted trying to fulfilltheir “wisdom” through compliance.

Insurance companies are interfering in the repair process, and that interference is detrimen-tal to their actual objectives. Recently, a major carrier began using a national locator service forsourcing LKQ (used) parts. They have gone as far as to enter line notes on their estimates withthe phone number and quote number of where that part was located. All of that would be fine if infact they picked up the phone and spoke to someone about what state that part was in, how longit will take to be received and the condition of the part. They have also gone as far as to includeline notes to the effect of, “No part price increase will be honored if the part is not ordered from alisted vendor.” So not only are insurance companies forcing shops to use or attempt to use whatmany times are substandard parts, but they are forcing facilities to purchase these parts from aspecified vendor at a specified price. Out the window goes any relationships that shops havegroomed over the years with vendors. Gone are the countless examples that prove time and timeagain that buying locally from someone you know is the way to go. I’m not even talking abouttheir refusal to pay for required procedures and materials. That’s a whole different problem thatwe have.

For months now, I have written about how WMABA does and will continue to need your help.Well, that time is upon us. If you are as tired and frustrated as I am, step up. Start saying nowhen these outside influences don’t mesh with your business model. Insurance is a business,and they are good at making money. Don’t let that be at your expense! When WMABA goes tobat for our industry, we will need your help. Stay tuned and stay ready. H&D

I appreciate WMABA working on my behalf at the state capitol(s)!Here is my contribution to the legislative efforts.

Name: ______________________________________Company: __________________________________

Address: __________________________________________________________________________________

City:____________________________________________State: ______________________Zip: ________

Phone: ______________________________Email: ____________________________________________

Donation Amount: $50 $100 $500 Other ________________

Check Enclosed Credit Card (Visa, Amex, MC)# __________________________________________________________ Exp: ________

Name on Card: ______________________________Signature: __________________________________

WE NEED YOUR LEGISLATIVE CONTRIBUTION!

P.O. Box 3157 • Mechanicsville, VA 23116

44 April 2015

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ADVERTISERS’INDEX

Alexander & Cleaver............................23

Alexandria Toyota ................................41

All Foreign Used Auto..........................41

Audi Group ..........................................17

Audi Silver Spring ................................IBC

Axalta Coating Systems ......................OBC

BMW Group ........................................26-27

BMW of Silver Spring ..........................IBC

BMW of Fairfax....................................3

CAPA ..................................................16

Chesapeake Automotive Equipment ..7

Empire Auto Parts................................50

Ford Group ..........................................21

Future Cure ........................................19

GM Parts Group ..................................20

Hendrick Honda ..................................43

Honda Group ......................................25

Hyundai Group ....................................48

Koons Ford ..........................................43

Malloy Auto Group ..............................46

Mazda Group ......................................49

MINI Group ..........................................31

Mitsubishi Group..................................35

Mopar Group ........................................29

Nissan Group ......................................9

NUCAR................................................8

O’Donnell Honda ................................50

Packer Norris Parts ............................11

Porsche Group ....................................13

Porsche of Silver Spring ......................IBC

PPG ....................................................IFC

Russel Toyota ......................................40

Safety Regulations ..............................28

Sherwin-Williams ................................4

Subaru Group......................................47

Toyota Group ......................................42

VW Group............................................30

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