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AUTO OUTLOOK ARTICLES IN THIS ISSUENATA - AUTO OUTLOOK STAFF

November | December | January 2013/2014

NATA Staff

NATA’s Executive DirectorBarbara Crest [email protected]

Insurance SpecialistCathi Webb [email protected] Office ManagerLaurie Kolar [email protected]

Contributing AuthorJohn YoswickCathi Webb

Contributing PhotographersCathi Webb

EditorBarbara Crest

Graphic DesignerJulie Almquist, www.AlmquistProductions.com

Mail editorial news, notices and correspondence to:NATA Administrative Office:7931 NE Halsey St., Suite 212, Portland, OR 97213

Article and Advertisement Deadlines:Jan. 10 for the February NATA Auto OutlookApr. 10 for the May NATA Auto OutlookJuly 10 for the August NATA Auto OutlookOct. 10 for the November NATA Auto OutlookCopyright 2013 Northwest Automotive Trades Association All rights reserved. This material may be reprinted only with the expressed written permission of NATA.

Administrative Office: 7931 NE Halsey St. Suite 212, Portland, OR 97213

1.800.730.7282 Fax: 503-253-9890503.253.9898 www.facebook.com/nwautotrades

www.aboutNATA.org

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AUTO OUTLOOK INFORMATION

Letter from the Executive DirectorCollision Repair Shops Throughout OregonSaif Corporation DeclaresJake Hammer, Everett Street AutoworksEPA Addresses Disposal of Shop TowelsCash is King Advanced Auto Parts Aquires General Parts InternationalAWA Octoberfest Fundraiser

New and Refreshed!At our NATA Board planning meeting this May in Bend, the Board went through an exercise to set goals for the next five years. Through lots of conversation and then more focused discussion on what NATA should look like in the near future, it was decided that we would have a new and re-freshed website before the end of this year. Lo and behold, we are ready to launch the NEW NATA website by the time Auto Outlook goes to press. To visit our new site, go to http://aboutnata.org and click your way around the new site. Please note the new NATA logo toolbox. If you want to add our logo on to your print and/or electronic materials, just go here, find the one that works best for you. You can connect to our social media sites like Facebook from NATA’s homepage. We have a new U-Tube channel accessed from the homepage. We are starting to video-tape our Lunch and Learn sessions when presenters allow us to . . . so you can watch our Medicare seminar, AND Nick Shepherd’s “Reducing Your Tax Burden in 2014 for Small Business” (see p. 2 for details). Our covers are devoted to the people who make our association the best it can be . . . our NATA Board of Directors! This issue, meet Jake Hammer, owner, Everett Street Autoworks (p. 5). Not only does Jake run a very successful automotive business, he is a husband to Tiffany AND father to three small children: Henry, 6 and twins Joey and Gracie, 4. Jake is also Treasurer of our association. Jake and President Ross Bradshaw, along with Nick Shepherd, NATA’s CPA, have designed a regular internal checks and balances system for NATA. We thank Jake Hammer and the other Board members for volunteering their precious time to NATA members and the automotive trades in Oregon. Hats off to you! The NATA Nominating Committee will be meeting in December to review Board candidates for the 2014 Board of Directors. If you have a desire to serve membership in this leadership position, contact me and I will get the ball rolling for you. We are now in our months of celebration and renewing ties with family and friends. We wish you all the best with family, friends, church, and others who make this a sparkling time to celebrate the season! Cheers!

AUTO OUTLOOK n Volume 24 November I December I January 2013/2014 n 2

LETTER FROM THE EXECUTIVE DIRECTOR

NATA Executive DirectorBarbara Crest

Advanced Employer Solutionswww.pem-connectinc.com

ALLDATAwww.alldata.com

American National Insurance Co.www.anpac.com

Car-Part.comwww.car-part.com

Demandforcewww.demandforce.com

Hays Companies of Oregonwww.hayscompanies.com

Kaiser Permanentewww.kp.org

Kukuiwww.kukui.com

LKQ Corporationwww.lkqcorp.com

NACM of Oregonwww.nacmoregon.org

Net Drivenwww.netdriven.com

Oregon Lien Servicewww.oregonlienservice.com

Qualified Processing Serviceswww.qualifiedprocessing.com

Real Benefits Groupwww.realbenefitsgroup.com

SAIF Corporationwww.saif.com

Willamette Valley Benefits

NATA wishes to thank those businesses that have paid their dues to our association. We thank you for your loyalty and generous contribution that helps keep NATA working for our members:

NATA Associate Members

n AUTO OUTLOOK n Volume 24 November I December I January 2013/20143

In fall of 2013, the Northwest Automotive Trades Association (NATA) distributed a rate survey to about 600 collision repair shops throughout Oregon, both members and non-members of the association. More than 50 shops (8.3%) responded.

The survey took place about 16 months after a similar survey.

The chart shows the state-wide findings for the 2013 survey, also broken down to market or geographic areas when enough data was submitted from a particular area.

In comparing the current data to the rate survey findings reported in 2011:

• Body and paint labor rates overall tended to be up just 2 to 6 percent over what they were in 2011. The Port- land area saw no change and remained below the state average. The Salem area, which had shown no change from 2009 to 2011, saw the largest increase from 2011, followed by the Southern Coast area.

• Frame and structural labor rates also rose across most of the state, most significantly in the Salem and Southern Oregon areas.

• Statewide, the average mechanical labor rate actually fell almost 6 percent, though it was up in the Portland, Eugene and Southern Oregon markets. It remains highest (but is growing less slowly than in other markets) in the Portland area.

• This was the third time the survey asked about aluminum repair labor rates, which again rose in Portland, boosting the state average, although they were down in several other markets.

• Paint materials rates were largely unchanged, despite the continued increases in materials costs most shops have experienced. Statewide, rates were up just 3 percent since 2011.

• While inside vehicle storage rates remained mostly flat, outside storage rates jumped by 14 percent statewide.

• The association conducted its first collision repair rate survey in late 2006. Since that time, body/paint labor rates (on a statewide basis) have increased only about 2 percent per year. This is similar to national labor rate trends.

Collision Repair Shops throughout Oregon

Collision Repair Rate SurveyIn the fall of 2013, the Northwest Automotive Trades Association (NATA) distributed a rate survey to about 600 collision repair shops throughout Oregon, both members and non-members of the association. Here are the findings for the state and (when practical) on a market or geographical area basis.

Body/Paint Labor

per hour

Frame/ Structural

Laborper hour

Mechanical Labor

per hour

Aluminum Repair Labor

per hour

Paint Materialsper paint

hour

Body Materials per body

hour

Inside Storage per day

Outside Storage per day

Used Parts Mark-Up

Avg. Size (# of body/paint stalls)

Eugene –Springfield -Corvallis

Oregon(state-wide)

PortlandMetro Area

Salem - Silverton - Stayton

South Coast (North Bend to Brookings)

North Coast(Astoria to Waldport)

Medford- Roseburg-Grants Pass

$52 $60 $79 $59 $33 $6 $50 $40 25% 17

$53 $61 $80 $57 $32 $7 $35 25% 22

$50 $57 $90 $63 $32 $5 $53 $42 30% 18

$53 $61 $75 $54 $32 $8 $45 $40 27% 10

$55 $64 $72 $58 $38 $8 $49 $32 25% 15

$53 $62 $75 $54 $34 $5 $43 25% 16

$53 $65 $80 $55 $39 $7 $48 $42 25% 19

RatesVaried

$35-$50

RatesVaried

$40-$75


Board of Directors approves a $130 million total dividend; checks to NATA members and others to be mailed to approximately 43,000 employers in October.

Customers with policies that ended in 2012 are eligible for the dividend. Individual dividend information will be available to employers through SAIF’s website, saif.com, beginning October 11. Checks will be mailed to eligible SAIF policyholders during October.

“SAIF is able to pay this dividend because of solid investment returns and continued success in managing workplace safety and controlling losses,” said President and Chief Executive Officer

Brenda Rocklin.

“The first priority of SAIF Corporation’s Board of Directors is to ensure that SAIF can meet its financial obligations to injured workers and their dependents,” said Cathy Travis, chair of SAIF’s board. “We reviewed current audit reports, which confirm that we can declare this $130 million

policyholder dividend and safeguard the funds we need to pay injured worker benefits.”

SAIF Corporation is Oregon’s not-for-profit, state-chartered workers’ compensation insurance company. SAIF has been doing business for 99 years and is the leading workers’ compensation insurance provider in Oregon.

Contact: Chris Davie | 503.373.8006 | [email protected]

SAIF Corporation declares dividend for policyholders

Portland, Oregon is a long way from Salida, Colorada where Jake Hammer was born in 1977. His mom relocated the family to Salem, Oregon, when he was a baby. His mother remarried, and when he was seven his father moved the family to Portland for business reasons. Jake attended Wilson High School in SW Portland and graduated in 1996. He went on to Washington State University in Pullman WA where he majored in international business, and graduated in 2000. Jake spent a term of college studying in Italy

by accepting an opportunity that opened up for him.

Following along his trend of opportunities, a family friend of Jake’s bought the building where “Everett Street Autoworks” began. If you head down to the heart of Portland’s Old Town district you can find it, one of the City’s premier, privately-owned auto repair shops. Historically, the ESA building had been in the automotive trades since the 1950’s, and had also been used for parking/storage.

“I didn’t get into the automotive repair business because of a love for cars, necessarily, but for the excellent automotive business opportunity,” said owner Jake Hammer. Since late 2001 and into 2002 when Everett Street Autoworks opened, it has grown by close to 20% every year. “I was young and dumb back then, but the family friend who bought the building was astute in real estate. I was the businessman who was given a minor equity stake in order to manage

day-to-day operations and get it to grow.” Since then, Jake bought the business in 2007 and bought an interest in the building in 2008.

As an EcoBiz-certified establishment, the shop uses recycled anti-freeze when possible, recycles all their used oil filters, and utilizes only environmentally friendly practices whenev-er possible. Inside the 10,000-square-foot garage, a team of ASE-certified technicians tackles factory-scheduled mainte-nance, oil changes, or full-scale engine repairs. Located near the city’s light rail, Everett Street Autoworks offers patrons alternative commuting options including a free shuttle.

Besides the eco-biz certification, Everett Street Autoworks is AAA Approved, and won an “Exceptional Service Award” through AAA on two occasions. Also liked by Angie’s List, his shop has won several “Super Service Awards” and is one of the highest rated auto repair facilities on “Yelp.com”.

Jake’s passion for life is channeled through is family: wife Tiffany, and his three children, Henry, 6, and twins Joey and


Jake Hammer, Owner and Manager, Everett Street Autoworks & Treasurer at NATA

“NATA has a strong influence in the Oregon legislature. I get to learn about the political arm of the industry. NATA watches out for us, and I don’t have the time to do that.” — says Jake

Jake Hammer, Owner and Manager, Everett Street Autoworks & Treasurer, Northwest Automotive Trades Association


Gracie, 4. “Now, other than working for a living, my family is the main thing in my life,” said Jake. He lives four miles as the crow flies from where he grew up in SW Portland. He expects his children will follow him to Wilson High School. Jake’s dad bought a filbert farm south of Dayton, and his kids love to visit grandpa and play farmer! Jake’s mom died of cancer 11 years ago.

He also loves sports . . . golf, snow skiing, baseball, watching college football, the Washington State Cougars, and clas-sic cars. Currently he is restoring a ‘57 Pontiac Safari to go along with his ’65 Mustang that was completed 5 years ago.

“My secret to success is listening and ALWAYS doing right by the customer,” said Jake. “I don’t need social media to tell us we are doing something wrong because we always strive to do the right thing.” Besides the customer, Jake owes his business success to the great employees at ESA. “I’ve turned the business pyramid upside down here: first comes custom-er satisfaction, then happy employees, then me,” said Jake.

His crystal ball in to the future includes seeing more government oversight for health care, environmental standards and recordkeeping. “You can complain all you want, but we have to adapt,” said Jake. He sees a push for fuel efficient vehicles with smaller engines that need less and less maintenance. “Automotive shops can provide more preventative maintenance and more service than repair work in the future.”

Jake is Treasurer of Northwest Automotive Trades Associa-tion. “NATA has been a great resource for me,” says Jake. “I get to meet and network with people in the industry. NATA has a strong influence in the Oregon legislature. I get to learn about the political arm of the industry. NATA watches out for us, and I don’t have the time to do that.”

Summing up his lifetime in Portland, Jake says he “likes the climate, likes the people and the pace of life here. I just wish it could be a little bit warmer at times!” Amen!


The Environmental Protection Agency (EPA) says auto repair shops are one of the chief beneficiaries of a final rule having to do with disposal of shop towels.

Those towels are used to mop up grease and solvents, and can be either disposable or reused, in the latter case sent

to laundries. More than 25 years ago, if you can believe this, Kimberly-Clark, which manufactures disposable wipes, petitioned the EPA to change the classification of disposable wipes from “hazardous” to “non-hazardous.” That would make them cheaper and easier to use for repair and body shops.

The EPA issues a proposed rule to the effect, with caveats, in 2003. Then . . . nothing. No final rule was ever issues until this July when after 28 years, a final rule suddenly appeared, seemingly out of nowhere. The EPA has classified the final rule as “significant.”

It is effective on January 13, 2014. The final rule osten-sibly reduces the costs of using disposable wipes, which are reclassified as “non-hazardous.” This applies to wipes contaminated by what are called F0001-F0004 solvents, a designation that includes most solvents used in the auto aftermarket except trichloroethylene, which will continue to be treated as hazardous waste.

As a result, auto repair and body shops will no longer have to “manifest” most disposable wipes when they are sent off-site, and they can be sent to non-hazardous waste handling facilities. But the used disposable wipes have to be managed, while on site, in closed containers that are

EPA Addresses Disposal of Shop Towels

Who this EPA rule effects: Mechanical and Autobody Shops in the U.S.

What it does: Reduces costs for thousands of businesses, many of which are small business. Protects human health and the environment.

Rule takes effect: January 13, 2014


labeled “Excluded Solvent-Contaminated Wipes.” The wipes can only be stored on site up to 180 days. Solvent-contaminated wipes must no contain free liquids at the point of being sent for cleaning or disposal.

This is a harder to meet standard than the one EPA proposed in 2003, which would have require auto repair facilities to “ring dry” the wipe before getting rid of it. To achieve the new “no free liquids” standard, facilities will have to use what is called the Pain Filter Liquids Test (Method 9095B).

This test involves using a number 60 +/-5% paint filter available at any paint store. If any portion of the wipe’s contents passes through and drops from the filter within the 5-minute test period, the material is deemed to contain free liquids. Free liquid solvent removed from the wipes must then be managed as hazardous waste, as appropriate, and may be recycled to further reduce a facility’s environ-mental footprint.

The Paint Filter Liquids Test is already used by many state environmental agencies leading the EPA to say specification of that test is no big deal.

And don’t think you have to test every rag. The EPA doesn’t say this in bold face in any of the materials on its website dedicated to this final rule, but an auto shop is not expect-

ed to perform this test on every single disposable wipe. If one reads every word of the final rule, one would find these two sentences: “EPA notes that generators do not have to conduct the Paint Filter Liquids Test for every solvent-contaminated wipe. Rather, generators must ensure that if the Paint Filter Liquids Test was performed, the wipe would pass.”

EPA estimates that the final rule will result in a net savings of between $21.7 million and $27.8 million per year. That is for all affected industries, not just the automobile repair and aftermarket services sector.

“I’ve heard directly from stakeholders about the benefits of this rule and the need to finalize it,” says Mathy Stanislaus, assistant administrator for EPA’s Office of Solid Waste and Emergency Response. “The rule reduces costs for the thousands of businesses, many of which are small businesses, while maintaining protection of human health and the environment.”

— News from Search AutoParts.com - Stephen Barias

— excerpted from the MAPSA (Midwest Automotive Parts and Service Association) newsletter


One of the fundamental laws of business economics is supply and demand. With demand rising in the current economy, having adequate supply on hand is vital to stay in the game as the economy revitalizes itself. The question becomes, with daily demand increasing and the holidays right around the corner, just how do you fund the supplies?

The last few years have been hard on the business world, with the side effects of a harsh economy still felt in today’s interactions. As a result, the lending industry as a whole is still somewhat reluctant to offer the types of financing most businesses are looking for. For those owners looking for a short term solution to a specific problem – say, you need to upgrade your vehicle or equipment, expand your store front, stock up for the holidays or simply additional cash flow - the bank often won’t offer the best solution. Merchant cash advance, however, can.

Merchant cash advance (MCA) has grown and matured in the lending world since it first hit the market. With the creation of advisory boards to oversee the industry, MCA has become a vital tool to businesses and their growth. A merchant cash advance allows a business to take an upfront advance based on previous credit card processing history, and pay it back over a brief period of time, taken directly

out of your credit card deposits. The repayment is a fixed percentage in most cases, so good days mean faster repayment, while slower days don’t hurt you. Approval and funding can happen in as little as a week, and the requirements to be approved are much more reasonable than traditional lending options.

The security of knowing you have cash on hand and a guaranteed way to pay it back that won’t hurt the business can be very reassuring. Don’t put off making that critical business purchase because the funds aren’t there. Merchant cash advance can give you that boost to get the ball rolling, safely and stress-free. If you’d like to know more about merchant cash advance, the options available to both brick-and-mortar and home-based businesses, and how it can make your business worries disappear, call Qualified Processing Services today. The best part, you don’t have to process with QPS to reap the benefits of a merchant cash advance – we’ll work with you and your current processor, no questions asked. Call 888-737-7762 or email [email protected] for a free consultation.

— Todd Lazar, Superior Financial Systems — NATA Associate Member

Cash is King

Advance Auto Parts acquires General Parts

International

Advance Auto Parts announced in mid-October that it has entered into a definitive agreement to acquire General Parts International Inc., a privately-held distributor and supplier of original equipment and aftermarket replace-ment products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion. The transaction has been approved by the boards of directors of both companies and is expected to close in late 2013 or early 2014.

The deal will create the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.2 billion and more than 70,000 employees.


The Association of Women in Automotive held their 4th Annual Oktoberfest Fundraiser on October 12, 2013, hosted by Sherwood Auto Repair for the second year. Everyone had a great deal of fun with terrific music provided by Sawtale Ridge, delicious food, and good company. Adults and children took part in this annual event which raises money for automotive scholarships.

This year the event successfully raised enough money to fund two $1,000 scholarships. Association president, Margaret Ragan said, “$1,000 is a lot of money to a student. $1,000 can fund a student’s required tool set. $1,000 is nearly enough for a full term of classes. It makes a difference.”

In addition to many volunteers helping with this event several sponsors made the success possible as well: North-west Automotive Trades Association (NATA), Automotive Products, Apollo Chemical, ReBorn Automotive, Vic’s Auto Center, Ninkasi Brewing, Oregon Tradeswomen, Tyler’s Automotive, Brickhaven Bed & Breakfast, and Sherwood Auto Repair.

The 4th Annual Oktoberfest at Sherwood Auto Repair in Tualatin

Sawtale Ridge Band members Bill Erickson, Sonny Buchanan, and Ron Stearns are joined by AWA member/Hawthorne Auto Clinic employee Katy Grace Magdych.

Even though their work is hard, three members of the Association of Women in Automotive (AWA) smile for the camera as they set up for their 4th Annual Oktoberfest at Sherwood Auto Repair in Tualatin. L to R: Sarah Heidler, Tom Dwyer Automotive; Carra Molgard, Mackin’s Autobody; Shayla Wilson, Everett Street Autoworks

Administrative Office: 7931 NE Halsey St. Suite 212, Portland, OR 97213

1.800.730.7282 Fax: 503-253-9890503.253.9898

www.aboutNATA.org

Drop your new unwrapped gifts for boys

and girls at the NATA office toybox,

7931 NE Halsey St., Ste. 212, Portland 97213.

Or, participate in any giving tree or oth

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