From Aaron Schulenburg, Executive Director, SCRS
If you are looking for examples of how the DEG works, look no further than the inquiry below where the labor time was adjusted from 3.0hrs to 8.9hrs. The shop who sent this is loving the results in comparison to the very minimal effort involved in filing inquiries.
DEG Resolution Notice to Shop
Your inquiry was submitted to CCC by the DEG and we have been able to assist with a resolution. After researching the inquiry and corresponding with your Information Provider, CCC has proposed the resolution listed below which is scheduled to be added to the October 2013 update. If you have any questions regarding this please feel free to contact the DEG at firstname.lastname@example.org.
Estimated UM Release Date: 10/17/2013
Estimated DVD Release Date: 11-2013
MOTOR Publication Fix Date: 01-2014
Proposed Resolution: MOTOR stated:
After reviewing the OEM service information, the estimated work time applied to the Rear Panel Assembly has been adjusted to 8.9 hours from 3.0 hours, with a labor footnote that states, “LABOR: Time is after spare tire panel is removed. Time is after all necessary bolted-on parts are removed.” An estimated refinish time of 2.2 hours has been applied to the Rear Panel Assembly.
According to the “Guide To Estimating,” the following items are not included:
1. Isolate vehicle in separate dedicated aluminum clean room.
2. Set up clean room vacuum in clean room for aluminum extraction.
3. Repair/straighten of collision damage to mating flanges on vehicles.
4. Prime matching flanges on vehicle.
5. Set up fixtures and measure.
6. Applying etch primer.
Once again, we would like to thank you for taking the time to bring this inquiry to our attention and would like you to know that your efforts to help improve the collision estimating data are very much appreciated. We hope you will choose to continue to use www.degweb.org for any inquiries you may have in the future.
The DEG is a not for profit organization and welcomes any donations and contributions. We will use the funds to help the collision industry correct the inaccuracies and deficiencies in the estimating databases. Visit our website to learn more and to donate.
The Collision Repair Education Foundation and Society of Collision Repair Specialists (SCRS) are working together to invite SCRS member businesses to help provide their local high school and college-level collision students with a professional appearance by sponsoring Cintas technician shirt and pant work uniforms for this upcoming fall school year. The objective is to connect associations and collision repair businesses across the country with their local collision school programs. The more engaged the local industry is with the school, the better prepared the collision students will be to enter the industry after graduation, and have an appreciation for the role the local industry played in their personal success.
Ideally, sponsors would be identified and uniforms ordered before the end of September so they would be available for the fall semester.
SCRS members can sponsor a package of 20 work uniform sets for $1,000, which includes a pair of Cintas work pants and technician shirts. The sponsoring member business will have the company’s logo prominently featured on the front chest of the shirt, along with a Collision Repair Education Foundation patch. SCRS will be featured on the back of the shirt, making the connection to students at an early age of the value of industry involvement. Industry members interested in learning more about this sponsorship opportunity, identifying their local collision school programs, or have questions, should contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or phone 847.463.5244.
The Society of Collision Repair Specialists (SCRS) has issued a position statement regarding insurer mandates. The position statement is as follows:
In representation of collision repair businesses across the United States, The Society of Collision Repair Specialists (SCRS) takes exception to business mandates that property and casualty insurers impose upon collision repair businesses; particularly those that specify required vendors, business platforms or internal processes that must be followed in order to be included in, or avoid being excluded from, certain lines of work. As an example, insurer mandates surrounding parts procurement platforms may inhibit independent collision repair businesses from utilizing parts vendors with whom they have an existing relationship, providing insurers with greater influence and control over the parts supply chain.
SCRS believes this control falls outside of the scope of the insurance business. Some insurers are stipulating agreement to these terms, as a condition of being recognized in Direct Repair Programs (DRP). SCRS supports efforts that rightfully seek to eliminate such intrusion into the collision repair business, and enforcement of existing laws, regulations and codes that currently prohibit such actions. It is the opinion of SCRS that voluntary agreements cannot include stipulations which violate existing laws, rules and regulations. SCRS believes that collision businesses are capable of establishing successful vendor relationships and internal processes that will best accommodate the needs of the consumer, and that service providers will continue to respond to the market with increasingly creative solutions that drive performance for their customers and the respective market entities. We believe that solutions with tangible value propositions will be utilized and supported by the marketplace without the undue influence of insurer mandate.
As an example of the concerns addressed by the position statement, SCRS used the elimination of the “fax-only” option in the PartsTrader electronic ordering system that State Farm’s Select Service repair facility participants are required to use. The elimination of the fax-only option effectively requires suppliers to fully participate in the electronic parts marketplace or lose business from Select Service repair shops.
According to the press release announcing the new position statement, SCRS explained, “The rules of the game are changing and it is apparent that maintaining the relationships and negotiated deals of participating repair facilities is only a priority, so long as all involved submit to do business in the manner prescribed by State Farm Insurance, and other carriers with similar programs. Today these mandates address parts sourcing and ordering, but there is valid concern that they open the door to future market manipulation and influence over other similarly critical collision businesses purchasing habits as well.”
The Society of Collision Repair Specialists (SCRS) announced that, for 2013, the Repairer Driven Education series (RDE) presented at the SEMA Show will be enhanced with the addition of three designated educational tracks designed to help those with a particular focus attend a series of course selections that all speak to a purpose.
“The track program was actually a proposal from one of our previous attendees,” said SCRS Executive Director Aaron Schulenburg. “It was suggested that with so many education options in our program, they wished there was a way to determine which selections therein that spoke most to what they were looking to gain. It is really important to us to use attendee input and feedback as a primary driver for program development, and it made so much sense to create sub-categories in the manner suggested.”
SCRS has created three categories of educational topics:
- Understanding your business: This track is designed to provide thorough training around fundamental components of running a successful collision repair business. The topics extend through estimating and blueprinting, workflow and cycle time impact, profit center management, marketing and online reputation management. Quite simply, if collision repair business owners and operators better understand the core of their business, they can better manage its success.
- Enhancing your business: This category focuses on business development and improvement such as production techniques, office efficiency, processes and documentation, creating a turn-key business, mechanization, automation, equipment and systems. If attendees want to target specific customer bases or types of work, increase your ability to get paid for necessary operations, and be prepared for current and future technologies they are going to need in their repair business, this is the track that will give them the tools, resources and knowledge to accomplish that.
- Positioning your business: Most business owners today are asking themselves one of two questions; how do I compete? Or, how do I sell my shop for the most value? This category is going to present solutions to both. It includes focused strategies for competing against consolidation, growth strategies, preparation on how to sell your business or purchase your competitor, and how to make your business as valuable as possible, whether you plan to continue to operate it, or to market it to others. It includes a glimpse into future technology trends as well as potential business trends based on varying market shifts, and all of it is going to be relevant to your business.
Though all RDE courses can be purchased a la carte, based on attendee interests, the tracks are designed to help attendees select appropriate courses to meet those interests. The full list of all the sessions offered in each of the tracks can be found online at www.semashow.com/scrs.
“Our single greatest objective since day one has been to deliver education which provides tangible information which can be immediately implemented when our attendees return home to their business,” shared Ron Reichen, SCRS Chairman. “In essence, we seek out subject matter that is well-delivered and relevant to what repairers want, and need, to know. We want topics that are so relevant and urgent to the changing landscape of the industry, they simply can’t afford to not attend.”
On Monday, July 22nd, the Society of Collision Repair Specialists (SCRS) will hold an open board meeting from 3:00 – 5:00pm in Boston, Massachusetts. The meeting held in the Hancock Room of the Westin Boston Waterfront, will be open to anyone wishing to learn more about the association’s activities. The two hour meeting will include updates from SCRS staff and committees, outlining current and future work initiatives the association has undertaken on behalf of its membership.
The meeting will also include a detailed presentation from the SCRS Education Committee, led by committee member Toby Chess. The topic will focus on repairing aluminum using stud welding and dent pulling equipment technologies which meet prescribed heating limitations. The presentation will feature the premier of a multimedia instructional video and in-person discussion which will walk through step-by-step methodologies that can create profitable repair scenarios in your collision business.
“It is critical for collision repair businesses to understand the repair options that are available in the industry,” shared SCRS Chairman Ron Reichen. “Paul Val, Toby Chess and the Education Committee have put together a presentation that demonstrates how certain repair procedures and equipment can produce extremely beneficial results that aid the consumer through cost effective repair methodology, while still producing high quality, profitable repair work.”
SCRS will also welcome Molly Broduer, Vice President of the SCRS affiliate association, the Alliance of Automotive Service Providers Massachusetts (AASP-MA). Broduer will give a brief update on current activities taking place in the state and an overview of efforts underway by the state association.
It is not necessary to register to attend the SCRS Open Board Meeting.
Collision repair attendees are also encouraged to attend the Repairer Roundtable, being held the following morning, Tuesday, July 23rd from 8:30am – noon. This meeting is a continuation of the ongoing series of repairer forums. This event is limited to collision repairers and direct representatives of collision repair businesses. To attend, please register at email@example.com, and identify topics that you believe are important to be discussed during the working session.
April 26 & 27
Beau Rivage Resort Casino Hotel
Aaron Schulenburg – SCRS
Rick Leos – Toyota Motors
Attorney Brent Geohagen
Friday, April 26: Reception and Vendor Exhibition
Saturday, April 27: Morning classroom training; Afternoon industry presentations.
SCRS Releases Video Coverage of International Perspective on Insurer-Mandated Parts Procurement From SEMA
RDE Session at SEMA highlights the impact these programs have had on global markets in Australia, New Zealand and Canada
Prosser, Washington, February 4, 2013 – A central topic of collision repair discussion this year has been the advent of the insurer-mandated parts procurement program, of which State Farm’s controversial PartsTrader pilot in select cities across the United States has garnered the most visibility to date. While the effects of these programs have yet to fully play out in the U.S., their nature as a mandated intrusion into established business processes may well cause long-term harm to collision repairers and suppliers.
In November of 2012 at the SEMA Show, The Society of Collision Repair Specialists (SCRS) brought together a panel of guests from around the world that have first-hand experience with insurer-mandated parts procurement in their respective countries. The program, part of SCRS’ Repairer Driven Education (RDE) curriculum, was titled, “Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement.” The full house of attendees attested to the fact that this is a topic of much concern to the industry.
Panel participants included David Newton-Ross (Australia), publisher of National Collision Repairer and The NZ Collision Repairer magazines and organizer of the Collision Repair Specialists Australia (CRSA) Conference in Australia; Rex Crowther (New Zealand), a former facility owner, current editor/publisher of Panel Talk magazine and former executive chairman of New Zealand Collision Repair Association; and John Norris (Canada) collision chairman of the National Automotive Trades Association of Canada and executive director of Ontario-based Collision Industry Information Assistance, the second-largest trade group in Canada.
Though their markets are thousands of miles away from each other, with their own specific identities, the impact of insurer-mandated parts procurement on each was negative to varying degrees. To watch their presentations for yourself, please click on the following images:
David Newton-Ross, Australia
John Norris, Canada
Rex Crowther, New Zealand
“Based on my experience, the situation in the U.S. is bad, and will worsen as more American insurers get on board with the programs,” said Newton-Ross. “Over time the collision repairer will lose in almost every way imaginable: loss of profitability thanks to cheaper parts, loss of efficiency as inferior parts need to be reworked and loss of relationships with suppliers. The only gain they will see is many more accounts to handle! The reason that the impact of these programs wasn’t worse in Australia is that we worked together as an industry to raise consumer awareness, and that helped put a stop to the spread of the programs. When consumers find out what’s going on they get concerned-and for good reason.”
Perhaps the insurer-mandated parts procurement programs have had the most devastating impact in New Zealand. “Prices were driven down – there wasn’t even a margin allowed on freight even though parts often came from far further afield than previously – and quality control became non-existent,” stated Crowther. “There was additional administration time and constant interruption to workflow. The model rewards shops and suppliers that do not understand profitability and business discipline, and so the performance of the good businesses suffered from the inefficiencies that PartsTrader caused here.”
“There was additional administration time and constant interruption to workflow. The model rewards shops that do not understand profitability and business discipline, and by buying into the system these lesser shops drag everyone down.”
Insurers are also pursuing mandated parts procurement in Canada, with less than acceptable results. “In insurer-dominant marketplaces, shops fear that saying ‘no’ to an insurer’s program because it may result in the blacklisting of their business,” Norris explained. “But shops that agree to participate find significant discounts taken and parts orders taking extra days to arrive from distant and unknown suppliers, as the program restricts their supplier options to only those that pay a fee to the insurer when parts are sold. Shops cannot deliver on-time estimates. Anyone who says these systems increase efficiencies is wrong. If there is one lesson to be learned out of this, it’s that shops should work with insurers, not for insurers. They cannot afford to become ‘DRP lazy’.”
In addition to resourcing perspectives from other market areas, SCRS’ recent focus has been on the perspectives of domestic collision repair facilities. In a survey conducted during the months of December 2012 and January 2013, SCRS collected responses and reactions from over 400 collision repair businesses to industry issues such as insurer-mandated parts procurement programs. While the respondents were varied in their business model and geographic location, the perspectives on this topic were clearly consistent. Of those who responded, over 70% indicated they participate in one or more insurance Direct Repair Programs (DRP), with the largest segment (39.3% of total respondents) indicated they currently participate in 2-5 DRPs.
One question inquired if repair facilities “consider insurance carriers mandating processes, such as how to locate and order parts, an intrusion into your business or an area that would benefit from collaboration.” A resounding 91.4% of total respondents stated that this is an area that they consider “an intrusion into my business.” Additionally, 91.8% of the total respondents indicated that they are “concerned about how insurer mandated parts bidding will impact the industry.”
Respondents were then asked, “If these mandates come to [their] market area, will it cause [them] to rethink [their] business relationship with the carrier?” Again, the resounding response from 69.9% of participants was “yes.” Interestingly, only 8.5% were comfortable committing to “no,” with over 20% indicating that they were “unsure” how the potential mandate would affect their views on the relationship.
“We continue to research this issue, and put together educational opportunities such as this to help our industry understand the very real impact these programs have had in other markets, and are already having here in the U.S.,” said SCRS Executive Director Aaron Schulenburg. “By exploring the cause and effects of these programs in other countries, U.S. collision repairers can better understand the likely outcome of the programs in our country and effectively strategize how their businesses will individually address such programs based on a well-informed understanding of the potential advantages and disadvantages. Our industry is global; sharing information is a vital activity in which we should all participate as we hope is exemplified by this forum.”
SCRS Press Release
Prosser, Washington, February 1, 2013 – On January 23rd, the Society of Collision Repair Specialists (SCRS) held an open board meeting in Palm Springs, California which included a presentation from the SCRS Education Committee, led by committee member Toby Chess. The topic of the presentation focused on areas of friction between repair facilities and insurance companies surrounding proper frame and structural repair approaches; including not-included operations and proper methodology to address welding, pulling, repairing or replacing frames on today’s modern fleet.
A video of the presentation was produced for SCRS by Collision Hub, and can be viewed by clicking the following image.
Full Frame Replacement Presented by the SCRS Education Committee
“Toby and the committee have done a great job compiling information that exists in the marketplace and creating presentations that help to educate the industry,” shared SCRS Education Committee Chairman Paul Val. “It is our hope that continuing down this path, the committee is able to broaden the understanding of necessary procedures and equipment.”
Previous presentations can be found at the following links:
SCRS Education Committee Presents: Windshield Installation and Safety Concerns
SCRS Education Committee Presents: Squeeze-Type Resistance Spot Welding How and Why
SCRS Education Committee Presents: Blueprinting Tools for Collision Estimating