RATES LABOR. REVEALED: WMABA s Survey Results Part 1. Bad Repairs and the Law Estimating the DEG Way An Uncertain CIC

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1 March 2016 Volume 10, No. 3 $5.95 Bad Repairs and the Law Estimating the DEG Way An Uncertain CIC LABOR RATES REVEALED: WMABA s Survey Results Part 1

2 COVER STORY WMABA provides real numbers and real answers. BY JORDAN HENDLER LABOR RATES REVEALED: WMABA s Survey Results Part 1 Do you know how YOUR LABOR RATES COMPARE to other shops in the marketplace? If not, read on. WHAT IS YOUR RETAIL HOURLY BODY LABOR RATE? WHAT IS YOUR RETAIL HOURLY FRAME/ STRUCTURAL LABOR RATE? SURVEYS TELL IT LIKE IT IS! You can come to one conclusion really simply: that overall rates in the Virginia, Maryland and DC area in the past four years have remained the same. I know that will not shock anyone reading this, but it goes to show the industry is suppressed and depressed while costs for every part of the business are going up every year. WMABA uses this valuable information to discuss our situation with government entities that review issues like this. Some way, sometime there needs to be a way we can get positive change for growth in this area. At the end of January, WMABA concluded its most recent Labor Rate Survey. Again split between this issue and next, the results offer intriguing insight into the rates, trends and procedural practices that define the Washington Metropolitan collision repair industry. Like previous installments, the results of this most recent Survey are reflected in eight different regions: Baltimore area, Annapolis area, Hagerstown area, Washington, DC area, Virginia Beach area, Charlottesville area, Richmond area and Roanoke area. There is a customary +/-5% accuracy for the results. This month s Hammer & Dolly offers results to the following Survey questions: WHAT IS YOUR RETAIL HOURLY PAINT/ REFINISH LABOR RATE? WHAT IS YOUR RETAIL HOURLY PAINT MATERIAL RATE? DO YOU USE A PAINT & MATERIAL CALCULATOR SUCH AS PMC LOGIC, MITCHELL RMC OR PAINT LOGIC? (YES/NO) WHAT IS YOUR RETAIL HOURLY MECHANICAL LABOR RATE? DO YOU HAVE A CERTIFIED ALUMINUM STRUCTURAL REPAIR AREA? (YES/NO) WHAT IS YOUR DAILY STORAGE RATE? (INSIDE & OUTSIDE) WHAT IS THE TOTAL NUMBER OF TECHNICIANS EMPLOYED (BODY, PAINT AND MECHANICAL)? The results offer intriguing insight into the rates, trends and procedural practices that define the Washington Metropolitan collision repair industry. WHAT IS THE SQUARE FOOTAGE OF YOUR COLLISION FACILITY? WHAT IS THE TOTAL NUMBER OF ESTIMATORS EMPLOYED? WHAT IS THE TOTAL NUMBER OF OFFICE STAFF EMPLOYED? March

3 REGION 1 BALTIMORE AREA BALTIMORE COUNTY, MD CARROLL COUNTY, MD CECIL COUNTY, MD HARFORD COUNTY, MD HOWARD COUNTY, MD THE CITY OF BALTIMORE, MD Range Body Labor $42-52 $42-52 $40-48 $40-75 Frame Labor $48-75 $42-68 $45-85 $40-88 Paint Labor $42-52 $28-50 $40-48 $26-60 Paint Material $26-34 $26-36 $25-32 $20-42 Mechanical Labor $ $ $ $ Inside Storage $ $ $25-80 $ Outside Storage $25-75 $25-55 $25-55 $15-75 Square Feet 2,000-60,000 1,500-68,000 # of Techs # of Estimators # of Office Staff to 7 Average Change Body Labor $45.70 $44.07 $43.07 $ % Frame Labor $54.89 $52.93 $52.05 $ % Paint Labor $45.70 $43.95 $43.13 $ % Paint Material $30.11 $29.11 $27.65 $ % Mechanical Labor $ $96.96 $94.95 $ % Inside Storage $62.26 $56.70 $46.75 $ % Outside Storage $45.56 $39.75 $36.86 $ % Square Feet 11,328 12,730 12, , % # of Techs % # of Estimators % # of Office Staff % Paint Calc % 10.53% 12.70% 16.00% (from 2014) The overall percentage of those surveyed who have an operating dedicated structural aluminum repair area is 15.8% REGION 2 ANNAPOLIS AREA ANNE ARUNDEL COUNTY, MD CALVERT COUNTY, MD CAROLINE COUNTY, MD DORCHESTER COUNTY, MD KENT COUNTY, MD QUEEN ANNE S COUNTY, MD TALBOT COUNTY, MD Range Body Labor $42-50 $42-48 $40-48 $40-52 Frame Labor $45-80 $48-68 $45-65 $42-85 Paint Labor $42-50 $42-48 $40-48 $40-52 Paint Material $28-32 $26-32 $24-34 $16-32 Mechanical Labor $ $ $ $ Inside Storage $ $35-75 $25-70 $ Outside Storage $30-55 $35-55 $20-55 $20-60 Square Feet 2,800-44,000 1,800-44,000 # of Techs # of Estimators # of Office Staff to 7 Average Change (from 2014) Body Labor $45.37 $44.94 $43.80 $ % Frame Labor $53.84 $53.94 $49.62 $ % Paint Labor $45.58 $43.88 $43.80 $ % Paint Material $29.37 $29.53 $27.45 $ % Mechanical Labor $98.00 $97.12 $92.36 $ % Inside Storage $61.25 $49.69 $45.69 $ % Outside Storage $43.37 $41.18 $36.83 $ % Square Feet 12,948 14,358 12, , % # of Techs % # of Estimators % # of Office Staff % Paint Calc % 11.76% 29.20% 15.40% 44 March 2016

4 REGION 3 HAGERSTOWN AREA ALLEGANY COUNTY, MD CLARKE COUNTY, VA FREDERICK COUNTY, MD FREDERICK COUNTY, VA GARRETT COUNTY, MD LOUDOUN COUNTY, VA WARREN COUNTY, VA WASHINGTON COUNTY, MD Range Body Labor $42-48 $42-65 $40-50 $40-52 Frame Labor $46-65 $48-80 $ $44-99 Paint Labor $42-48 $42-65 $28-50 $28-52 Paint Material $28-42 $28-48 $20-44 $24-44 Mechanical Labor $ $ $ $ Inside Storage $25-80 $25-75 $20-80 $20-85 Outside Storage $25-75 $12-50 $20-65 $20-65 Square Feet 3,000-25,000 1,200-30,000 # of Techs # of Estimators # of Office Staff Average Change (from 2014) Body Labor $44.96 $45.26 $43.70 $ % Frame Labor $54.43 $57.91 $55.19 $ % Paint Labor $44.96 $45.26 $43.04 $ % Paint Material $31.09 $30.78 $29.00 $ % Mechanical Labor $86.30 $83.13 $86.06 $ % Inside Storage $55.79 $51.89 $54.26 $ % Outside Storage $44.83 $38.86 $45.19 $ % Square Feet 9,966 11, , , % # of Techs % # of Estimators % # of Office Staff % 1 to 2 Paint Calc. 9.00% 21.74% 11.10% 22.90% REGION 4 WASHINGTON, DC AREA ALEXANDRIA CITY, VA ARLINGTON, VA CHARLES COUNTY, MD CULPEPER COUNTY, VA FAIRFAX COUNTY, VA FAUQUIER COUNTY, VA FREDERICKSBURG CITY, VA KING GEORGE COUNTY, VA MONTGOMERY COUNTY, MD PRINCE GEORGE S COUNTY, MD PRINCE WILLIAM COUNTY, VA RAPPAHANNOCK, VA SPOTSYLVANIA COUNTY, VA STAFFORD COUNTY, VA ST. MARY S COUNTY, MD THE CITY OF WASHINGTON, DC WESTMORELAND COUNTY, VA Range Body Labor $40-98 $42-50 $40-55 $38-50 Frame Labor $ $42-88 $ $38-90 Paint Labor $40-98 $30-50 $26-55 $25-50 Paint Material $27-50 $26-35 $22-45 $18-95 Mechanical Labor $ $ $ $ Inside Storage $ $ $ $ Outside Storage $25-95 $20-85 $ $ Square Feet 1,500-60,000 1, ,000 # of Techs # of Estimators # of Office Staff Average Change (from 2014) Body Labor $46.13 $44.42 $43.59 $ % Frame Labor $57.98 $53.54 $52.79 $ % Paint Labor $46.18 $44.01 $43.34 $ % Paint Material $30.94 $30.19 $29.38 $ % Mechanical Labor $ $96.38 $91.88 $ % Inside Storage $65.07 $59.94 $53.55 $ % Outside Storage $55.54 $50.60 $46.05 $ % Square Feet 12,753 14,088 14, , % # of Techs % # of Estimators % # of Office Staff % 3 to 5 Paint Calc % 14.12% 23.90% 29.40% March

5 REGION 5 VIRGINIA BEACH AREA ACCOMACK COUNTY, VA CHESAPEAKE CITY, VA FRANKLIN CITY, VA GLOUCESTER COUNTY, VA HAMPTON CITY, VA ISLE OF WIGHT COUNTY, VA MATHEWS COUNTY, VA NEWPORT NEWS CITY, VA NORFOLK CITY, VA NORTHAMPTON COUNTY, VA PORTSMOUTH CITY, VA SOMERSET COUNTY, MD SOUTHAMPTON COUNTY, VA SUFFOLK CITY, VA SURRY COUNTY, VA VIRGINIA BEACH CITY, VA WICOMICO COUNTY, MD WORCESTER COUNTY, MD YORK COUNTY, VA Range Body Labor $42-52 $42-48 $40-55 $42-55 Frame Labor $44-85 $45-65 $40-85 $42-85 Paint Labor $42-52 $42-48 $28-60 $32-55 Paint Material $24-44 $28-35 $22-34 $25-44 Mechanical Labor $ $65-98 $ $ Inside Storage $ $25-65 $ $ Outside Storage $15-60 $25-50 $10-50 $15-85 Square Feet ,000 3,000-22,000 # of Techs # of Estimators # of Office Staff Average Change (from 2014) Body Labor $45.19 $44.59 $44.27 $ % Frame Labor $55.35 $54.62 $52.78 $ % Paint Labor $45.06 $44.03 $44.76 $ % Paint Material $31.61 $30.82 $29.35 $ % Mechanical Labor $88.84 $85.83 $84.51 $ % Inside Storage $44.56 $39.62 $40.50 $ % Outside Storage $32.78 $34.57 $31.69 $ % Square Feet 10,757 9, , , % # of Techs % # of Estimators % # of Office Staff % 2 to 3 Paint Calc % 13.79% 25.00% 22.00% REGION 6 CHARLOTTESVILLE AREA ALBEMARLE COUNTY, VA AUGUSTA COUNTY, VA BUCKINGHAM COUNTY, VA CHARLOTTESVILLE CITY, VA FLUVANNA COUNTY, VA GREENE COUNTY, VA HARRISONBURG CITY, VA LOUISA COUNTY, VA MADISON COUNTY, VA NELSON COUNTY, VA ORANGE COUNTY, VA ROCKINGHAM COUNTY, VA SHENANDOAH COUNTY, VA Range Body Labor $45-75 $44-50 $44-50 $42-45 Frame Labor $50-85 $50-75 $46-75 $50-80 Paint Labor $45-75 $42-50 $44-50 $35-45 Paint Material $32-45 $30-42 $32-46 $28-35 Mechanical Labor $60-95 $50-85 $55-95 $50-95 Inside Storage $ $35-75 $ $25-75 Outside Storage $10-65 $10-50 $10-50 $20-65 Square Feet 1,500-35,000 2,400-15,000 # of Techs # of Estimators # of Office Staff Average Change (from 2014) Body Labor $50.32 $47.47 $45.33 $ % Frame Labor $67.26 $63.71 $61.17 $ % Paint Labor $50.32 $46.59 $45.33 $ % Paint Material $35.68 $35.00 $33.83 $ % Mechanical Labor $76.84 $70.38 $70.24 $ % Inside Storage $58.75 $49.58 $51.92 $ % Outside Storage $43.16 $36.65 $36.25 $ % Square Feet 8,300 7,150 7, , % # of Techs % # of Estimators % # of Office Staff % 3 to 5 Paint Calc % 17.65% 16.70% 16.70% 46 March 2016

6 REGION 7 RICHMOND AREA AMELIA COUNTY, VA BRUNSWICK COUNTY, VA CAROLINE COUNTY, VA CHARLES CITY COUNTY, VA CHARLOTTE COUNTY, VA CHESTERFIELD COUNTY, VA CUMBERLAND COUNTY, VA DINWIDDIE COUNTY, VA ESSEX COUNTY, VA GOOCHLAND COUNTY, VA GREENE COUNTY, VA HANOVER COUNTY, VA HENRICO COUNTY, VA JAMES CITY COUNTY, VA KING AND QUEEN COUNTY, VA KING WILLIAM COUNTY, VA LANCASTER COUNTY, VA LUNENBURG COUNTY, VA MECKLENBURG COUNTY, VA NEW KENT COUNTY, VA NORTHUMBERLAND COUNTY, VA NOTTOWAY COUNTY, VA PETERSBURG CITY, VA POWHATAN COUNTY, VA PRINCE EDWARD COUNTY, VA PRINCE GEORGE COUNTY, VA RICHMOND CITY, VA RICHMOND COUNTY, VA SUSSEX COUNTY, VA Range Body Labor $44-55 $42-50 $42-56 $42-65 Frame Labor $44-75 $45-68 $48-78 $44-75 Paint Labor $34-55 $42-50 $32-56 $32-65 Paint Material $30-48 $30-42 $26-42 $15-45 Mechanical Labor $ $ $ $ Inside Storage $25-90 $25-95 $ $25-85 Outside Storage $20-95 $20-65 $20-50 $ Square Feet 1,600-32,000 1, ,000 # of Techs # of Estimators # of Office Staff to 7 Average Change Body Labor $45.27 $44.73 $44.16 $ % Frame Labor $57.84 $57.00 $56.66 $ % Paint Labor $45.11 $44.56 $43.62 $ % Paint Material $34.76 $34.15 $32.56 $ % Mechanical Labor $84.53 $83.46 $80.10 $ % Inside Storage $47.04 $45.13 $47.22 $ % Outside Storage $41.68 $37.24 $37.31 $ % Square Feet 10,457 10, , , % # of Techs % # of Estimators % # of Office Staff % Paint Calc % 10.42% 12.10% 24.30% (from 2014) REGION 8 ROANOKE AREA ALLEGHANY COUNTY, VA AMHERST COUNTY, VA APPOMATTOX COUNTY, VA BATH COUNTY, VA BEDFORD COUNTY, VA BLAND COUNTY, VA BOTETOURT COUNTY, VA BRISTOL, VA BUCHANAN COUNTY, VA CAMPBELL COUNTY, VA CARROLL COUNTY, VA CITY OF SALEM, VA COVINGTON CITY, VA DANVILLE CITY, VA DICKENSON COUNTY, VA FLOYD COUNTY, VA FRANKLIN COUNTY, VA GILES COUNTY, VA GRAYSON COUNTY, VA HALIFAX COUNTY, VA HENRY COUNTY, VA HIGHLAND COUNTY, VA LEE COUNTY, VA LYNCHBURG CITY, VA MONTGOMERY COUNTY, VA NORTON CITY, VA PAGE COUNTY, VA PATRICK COUNTY, VA PITTSYLVANIA COUNTY, VA PULASKI COUNTY, VA ROANOKE COUNTY, VA ROCKBRIDGE COUNTY, VA RUSSELL COUNTY, VA SCOTT COUNTY, VA SMYTH COUNTY, VA TAZEWELL COUNTY, VA WASHINGTON COUNTY, VA WISE COUNTY, VA WYTHE COUNTY, VA Range Body Labor $42-50 $42-48 $40-55 $ Frame Labor $50-75 $50-75 $44-96 $44-75 Paint Labor $36-50 $34-48 $30-55 $ Paint Material $30-40 $30-42 $24-42 $28-44 Mechanical Labor $ $ $ $ Inside Storage $ $25-75 $ $ Outside Storage $15-65 $15-55 $20-75 $10-50 Square Feet 1,500-40,000 2,000-38,000 # of Techs # of Estimators # of Office Staff to 2 Average Change (from 2014) Body Labor $46.20 $45.58 $44.01 $ % Frame Labor $58.00 $58.58 $54.42 $ % Paint Labor $45.93 $34.93 $43.64 $ % Paint Material $34.30 $33.88 $30.46 $ % Mechanical Labor $73.66 $70.47 $83.14 $ % Inside Storage $53.09 $48.04 $53.44 $ % Outside Storage $41.22 $36.67 $42.64 $ % Square Feet 9,707 8, , , % # of Techs % # of Estimators % # of Office Staff % Paint Calc % 15.00% 12.80% 18.40% March

7 48 March 2016 COVER STORY This year s fourth annual Labor Rate Survey results are compelling to the Washington Metropolitan Auto Body Association, as they once again show there is a grim stagnancy in the area s rate in spite of the continuous rise of all costs associated with business (i.e., taxes, benefits, electricity, paint/materials, tooling, equipment and more). Even the 10-point rise in the Producer Price Index (PPI) as reported by the Bureau of Labor Statistics for the category closest (Automobile, Light Truck and Utility Vehicle Mfg) and for the same time frame of is arguably even greater for our industry given that our equipment and other costs cannot be recouped as quickly as in a straight manufacturing environment. There are many repairers whose sentiments involve equating the rates they read in the Survey to something closer to what they want to see. The WMABA office often gets participants who say, That didn t change anything; we still have the same rate in our industry as last year. What the association wants the industry to know is that a survey just reflects current conditions. While the rates charged are individual business decisions, the repairers can get involved with the association and voice their concerns over the stagnancies mentioned. Reimbursement rates are not the same as door rates, and the practice of one industry arbitrarily deciding what prevailing market prices are without verifiable surveys or any transparency is plain wrong. The issue of what an average number means is also something that gets brought into the mix with survey discussions. In order to have an average, you need to have an upper half and a lower half, including a deviation check out bell curve that would place the majority of repairer prices in line with our reported range. Any reasonable person would say that something within percent of the average is more than fair, but when you look at what happens in our industry, there are repairers getting ripped apart for $2 an hour or something equivalent to a less-than-five-percent difference. There are some improvements in sporadic categories of the regions, such as for the Baltimore area (Region 1), with the 2014 mechanical Labor Rate average of $96.96 per hour jumping 9.24 percent to $ for Additionally, the amount of respondents who said they used a paint and material calculator rose from percent in 2014 to 24 percent in Also, the Annapolis area (Region 2) saw a percent jump in inside storage rates, going from $49.69 in 2014 to $61.25 in This Survey is a snapshot of where the industry is, and WMABA hopes this information is of use to repairers in the entire Washington Metropolitan area as the association continues to be the voice for issues surrounding the market and working out solutions to benefit the industry. Look for Part Two of WMABA Labor Rate Survey results in next month s Hammer & Dolly. H&D

8 April 2016 Volume 10, No. 4 $5.95 Labor Rate Survey Results - Part 2 SCRS Hits Seattle

9 WMABA FEATURE Second half of survey results show little movement. BY JOEL GAUSTEN Third-party pressure: This year s Survey saw a nearly 10-percent increase in respondents who told us they feared retribution from insurers if they charged for a fair, reasonable and necessary job that the carrier may not approve of. April

10 RESPONDENTS SHARE THEIR VIEWS ON STANDARD PROCEDURES DO YOU BELIEVE THIS IS A REQUIRED OPERATION? DO YOU CURRENTLY PERFORM THIS OPERATION? Tint the color 90.97% 93.06% Materials to tint the color 90.37% 87.41% Color, sand and buff and/or denib surface blemishes 93.88% 91.84% Materials needed to denib or buff a vehicle 94.78% 85.07% To remove tape or painted stripes before refinishing 95.74% 90.07% Feather, fill, block and prime on repaired panels 93.20% 93.20% Feather, fill, block and prime on welded panels 93.53% 92.81% Mark-up or admin on sublet (towing, upholstery, mechanical, pdr, etc.) 92.36% 81.94% Disable and enable interlock devices to move vehicles 90.40% 86.40% Clips and fasteners needed in the repair process 94.59% 91.89% Bagging vehicle to prime and for final refinish 93.79% 93.10% Bag opening to prime and for final refinish 93.53% 91.37% Bonding materials in the repair process 95.17% 93.79% Undercoating, installation and removal 91.10% 95.21% Structural foam, installation and/or removal 93.66% 94.37% Check and test seat belts being used in the accident 93.18% 87.88% Pressure test cooling systems after front-end damage 93.08% 83.08% Prep raw plastic when recommend by paint supplier 94.59% 93.24% Set up and pull to access repairs 92.47% 94.52% Weld thru primer and/or cavity wax when needed 93.15% 93.84% Replacement of information labels, parts and labor 93.88% 94.56% Removal and replacement of protective coatings 92.86% 90.00% Reset memory functions (e.g., radio codes, sensors, etc.) 95.04% 90.07% Jig rental when recommended by vehicle manufacturer 93.83% 55.56% Repairing weld burn, including grinding and prepping 93.18% 93.18% Still waters run deep. Although an initial glance at the Labor Rate Survey results that appear on these pages will show very little change over what was presented in our February 2015 issue (available online at tinyurl.com/zrspfo4), a more critical look under the surface reveals a number of issues that require attention from repairers, industry representatives and (quite possibly) legislators. Clearly, the biggest issue uncovered in the second part of the Survey is just how little the results actually moved from last year a major point of concern for WMABA. The industry is very stagnant in many areas, offers Executive Director Jordan Hendler. If the marketplace has not experienced any major shifts in vehicle technology, insurance practices or governmental oversight, then there wouldn t be reason to expect change in our Surveys. Really, the lack of change is what is so telling; our industry is controlled by outside influences. Unless those influences are compelled in some way, our industry will remain the same. One thing the association is seeing is that independent repairers are having even more difficulty with insurer refusals of both rates or procedures, and that is leading to more complaints to us and very likely to the state insurance departments. Unfortunately, one thing that did change was the number of Survey participants who said they offered insurance benefits to their employees. This year saw close to an 11-percent increase in the number of respondents who said they do not offer health insurance to employees, while the number of those who don t offer dental or vision insurance jumped by nearly 14 and 15 percent, respectively. If Labor Rates are not fluctuating, business owners have to contain their rising costs elsewhere; areas such as health insurance, leave or other Is it necessary to pre-clean most vehicles prior to entering the shop? Nearly 10 percent more respondents than last year think so.

11 HOW DO OUR SURVEY PARTICIPANTS FEEL ABOUT INSURER/SHOP RELATIONS? Yes No Do you believe insurers rate you on the use of alternative parts to OEM, such as used or aftermarket? 92.40% 7.60% Do you feel many insurers try to control or insert themselves into the repair process, including selection of parts and repair methods used? 97.20% 2.80% Do you have an insurer who requires you to order parts from a particular vendor or through a particular online procurement system? 61.00% 39.00% Do you believe insurer reimbursement rates are fair to support adequate profit for continuing education, certifications and new equipment? 7.60% 92.40% Would (or does) ordering parts or materials through a required third-party bidding system increase your cycle time and customer dissatisfaction? 74.10% 25.90% Have you been told you are the only one who charges for what you feel is a legitimate, reasonable and necessary operation? 84.00% 16.00% Do appraiser(s) tell you, We can t pay for that because it is against insurance company policy, even though you knew it was a fair, reasonable and necessary item? 95.10% 4.90% Do you feel that after an insurer is notified, that two business days is an adequate time frame for an insurer to come to your shop to inspect, appraise the damage and provide an estimate? 84.20% 15.80% Is it your experience that a good portion of insurance company representatives will intentionally write low ball estimates that omit obvious visible damage? 91.70% 8.30% Do inadequate or poorly written estimates by insurance company representatives delay the repair process and cost your shop time and money while you rectify mistakes? 99.30% 0.70% Do you feel appraisers intentionally omit vital processes in hopes the shop will not correct and amend the mistake, giving the insurer unfair financial gain? 93.00% 7.00% Have you feared retribution from insurers if you charged for a job performed that you feel is fair, reasonable and necessary, but they may not approve of? 76.20% 23.80% Do you feel insurers are using their power, together with a weak economy, in an attempt to coerce shops into accepting less than a fair amount? 90.80% 9.20% Have you experienced an insurer(s) who has declared a vehicle a total loss when you felt the vehicle was an easy, safe repair and the vehicle owner wanted it repaired, but did so because the insurer got a high salvage value? 76.10% 23.90% Do you experience insurers retaining payment, but tell you that you are holding the car hostage when they had more than adequate time to issue payment? 72.00% 28.00% Do you feel many insurers initial estimates lack proper repair procedures necessary to fix the car to pre-accident condition? 94.40% 5.60% We saw close to a 20-percent increase from last year in Survey participants who said that rental car companies unnecessarily contact them about the status of vehicle repairs, requesting numerous status reports and completion dates. SURVEY TAKERS REVIEW A NUMBER OF QUESTIONS THAT RELATE TO THEIR DAILY BUSINESS. Is it your experience that blending a panel takes Yes No as long, or longer, than refinishing a new undamaged panel? 95.10% 4.90% Does it take more skill and materials to blend a panel versus refinish a full panel? 95.90% 4.10% Is clean up time necessary on most LKQ or used parts? 96.50% 3.50% Can you blend or melt clear coat within a panel and give a lifetime warranty? 6.30% 93.70% Is it necessary to pre-clean most vehicles prior to entering the shop? 76.60% 23.40% Given the advancements in system compatibility, should you have the freedom of choice for your estimating system provider? 99.30% 0.70% Do used structural parts (e.g., quarter panel, hinge pillar, rocker panel, radiator support and apron or frame rails) take more trim time than new parts? 99.30% 0.70% Do you feel that modern vehicles (with boron steel, structural aluminum, multiple airbags, collision avoidance systems, laser welds, etc.) are more difficult to work on than older vehicles without those similar characteristics? 98.60% 1.40% Do you feel colors on newer vehicles are more difficult to match than those 5-10 years older? 80.40% 19.60% Do rental car companies unnecessarily contact you about the status of vehicle repairs, requesting numerous status reports and completion dates? 91.60% 8.40% Would you prefer an itemized calculator for materials based on a computer software program (e.g., PaintEx, PMCLogic, etc.) versus compensation based on current random multipliers using an hourly rate? 73.90% 26.10% Have you been able to provide across-the-board increases in the pay and benefits of your employees in the past five (5) years? 17.90% 82.10% April

12 The number of respondents who said they did NOT offer vision insurance rose nearly 15 percent from last year. Need your teeth fixed? You might have to wait. A nearly 14-percent increase from last year was reported in the number of respondents who said they do NOT offer dental insurance. The number of respondents who said they do NOT offer health insurance to employees was up nearly 11 percent this year. WHICH BENEFITS DO RESPONDING BUSINESS OWNERS PAY FOR? Yes, fully paid Yes, partially paid No Health Insurance 7.59% 54.48% 37.93% Dental Insurance 3.47% 29.86% 66.67% Vision Insurance 3.47% 24.31% 72.22% Long-term Disability 2.84% 17.02% 80.14% Life Insurance 13.38% 14.08% 72.54% Paid sick leave (after a set period) 37.06% 20.98% 41.96% Paid vacation (after a set period) 84.14% 8.96% 6.90% Personal leave (after a set period) 36.55% 8.97% 54.48% 401K or retirement program 20.98% 28.67% 50.35% Performance Bonus 35.42% 13.19% 51.39% Yearly cost of living increase(s) 7.75% 7.04% 85.21% benefits would be places to see change, Hendler explains. Additionally, there was a considerable spike in respondents who noted that rental car companies unnecessarily contact them about the status of vehicle repairs, requesting numerous status reports and completion dates. What are some possible reasons for the trend? Everyone wants answers now, Hendler replies. It s the unfortunate side effect from electronic everything we are used to having instant gratification. Those rental agencies are reporting to insurers, and this information is pushed back on them to keep the overall length of rental down wherever possible. Perhaps worst of all, the Survey results display a nearly 10-percent increase from last year in yes answers to the question, Have you feared retribution from insurers if you charged for a job performed that you feel is fair, reasonable and necessary, but they may not approve of? In Hendler s mind, it is clear that today s auto body industry is struggling under the influence of outside parties. Pressure by insurance companies to reduce costs and repair times but still produce the same results can leave owners and managers fearful of the retribution of standing up for procedures or policies that the customer would also want, she says. Using the association to be their voice can be a way of protection for their business to still potentially address an issue without hurting a relationship. Oftentimes, WMABA has national connections that would garner results over the top of local management decisions. It helps to at least get the word to the top that the marketplace is experiencing problems. While the information in this issue (as well as last month s edition) indicates frustratingly slow progress in the some areas, it can be used by WMABA as ammunition to demonstrate why there is a need for market practices reform throughout the region. It may not be pretty, but the Survey shows the truth, and that will be the key to the association and the industry it serves receiving greater assistance at the State House and beyond. H&D WHAT ARE YOUR THOUGHTS ON THE SURVEY RESULTS? DO THEY REPRESENT WHAT S GOING ON AT YOUR BUSINESS? Let us know what you think. Contact WMABA Executive Director Jordan Hendler at (804) / jordanhendler@ wmaba.com and/or Hammer & Dolly Editor Joel Gausten at (973) /tgpjoel@verizon.net. 38 April 2016