Riding out the storm: Industry rallying to recover from Hurricane Sandy

Jan. 1, 2020
With the tally of damaged vehicles, and sales potential for parts and repairs, is at 230,000 and counting, a bleak holiday season are also among the impacts on aftermarket businesses hit by Hurricane Sandy.
While the tally of damaged vehicles – and the accompanying sales potential for parts and repairs – is at 230,000 and counting, a bleak holiday season and dark prospects for the New Year are also among the lingering impacts on aftermarket businesses hit hard by Hurricane Sandy.

In a region unaccustomed to weathering such onslaughts, many operations lacked flood insurance. And even those with business interruption coverage and other types of policies are discovering that the disbursements may not be enough to provide for a full financial recovery.

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“There were hundreds of shops that were impacted by it,” said Ed Kizenberger, executive director of the Long Island Auto Body Repairmen’s Association (LIABRA).

“Obviously on Long Island we have a lot of shops at lower elevations. Long Island is just that – an island, and the storm surge that we had this time was greater than I’ve ever seen,” he reported. “You have cars that were under repair, and now they are ‘flood cars,’ so now they have to sort that all out.”

On Long Island alone, about 100 LIABRA members experienced a “severe business interruption,” while many others are struggling to cope with losses such as ruined tools and equipment or even a diminished neighborhood customer base.

“We’re talking about ‘mom and pops’ that may not have a large cushion to fall back on,” said Kizenberger, noting that the true economic scope of Sandy’s 900-mile-wide swath through the East Coast will remain under assessment for quite some time.

“Long term, the business interruptions may be too much for these guys to recover from in some cases,” he said. Owners nearing retirement age “may decide now is the time to throw in the towel.”

“These guys have their hands full,” said Paul Fiore, director of government affairs for the Automotive Aftermarket Industry Association (AAIA). “I suspect we’re going to see some very daunting numbers about how many shops are down and how many will be closing.” Insurance settlements, government assistance and other sources of aid are among the determining factors going forward.

The Collision Industry Foundation (CIF) has mobilized, and it is actively seeking tax-deductible contributions. “The disaster fund can help with immediate necessities or tool replacement for technicians. Many technicians’ tools aren’t covered by the shop insurance. Often, they cannot go back to work to earn a wage without our help,” explained CIF administrator Jordan Hendler.

“Donations of items that will help the victims, such as gift cards for groceries or tools for replacement, are always needed,” added CIF President Bill Shaw. “Money is the easiest way for us to purchase specific items for the victims, but any and all help is appreciated.”

‘It’s been crazy’
“A lot of these guys are hurting and a lot of guys involved need help,” said Tom Greco, secretary of the Alliance of Automotive Service Providers/New Jersey (AASP/NJ). In the wake of the storm he observed that “a lot of these guys don’t have power and it’s been 10 days. The mail has been stopped because the mail centers are down. It’s been crazy.”

“This is, by far, the worst storm we’ve ever seen here,” said AASP/NJ President Jeff McDowell. “In our shops and in our homes, it’s beyond description.”

AASP/NJ Executive Director Charles Bryant, a lifelong resident of the Jersey Shore, was stunned by the damage done to the neighborhoods he has walked since he was a child. “I really can’t find the words, but we are resilient. We will get through this, and we will rebuild. We like to say we’re ‘Jersey strong’ and this will be the ultimate test.”

McDowell is impressed with the spirit of cooperation being displayed by business owners who are more fortunate. “That’s one thing you can always count on,” he said. “As much as we compete, we are all part of the same brotherhood. Sometimes the worst brings out the best in us. We have seen a lot of that since the storm, and I am proud of those who have stepped up.”

LIABRA’s Kizenberger told of a stricken shop that received welcome help from a neighboring business equipped with an operating generator and compressor: “They ran an air hose across the street, but they were painting the cars by flashlight.”

Pulling together
“I had to close down the shop during and right after Sandy, but luckily we had power and were back to business within two days, said Audra Fordin, owner of the Great Bear Auto & Body Center in Flushing, NY. “The shop feels like a vehicle hospital over the last week,” she told Aftermarket Business World shortly after the storm’s late-October landfall.

“There are emergency situations all over our area. People are coming in with tires blown, axels broken, saltwater damage or just vehicles that I have to call a flatline on or are totaled,” Fordin recounted.

“Saltwater will destroy a vehicle very quickly,” she continued. “It creates rust, eats away at the body and will destroy all the electronics under the hood and under the vehicle itself. Trees have not made things any easier. I can’t tell you how many crushed cars I’ve seen in the last seven to ten days. It’s truly tragic for these hard working people. Most of these people with crushed cars have flooded or crushed homes,” as well, said Fordin.

“The community is pulling together by giving people rides and pushing vehicles that are out of gas to local stations. Then you have to hope you’re lucky enough to get your hands on a few gallons of gas. I have to say though, the community is as strong as ever, and this makes me reflect on the events of 9/11 when we had to come together and rebuild this great area,” she said.

Hurricane Sandy’s eye passed directly over the Pennsylvania community of St Thomas, inflicting a triple blow to Dave Brindle and his Brindle’s Auto Body. His home and the shop were both severely damaged, plus the shop was robbed of valuable tools and equipment – the thief or thieves knew that the security system was inoperative.

“It’s like kicking you when you’re already down,” said Brindle.

“We’re not back in business yet, but we’re here,” he reported. “The majority of the customers are waiting for us.” A former Brindle’s employee, Mike Clugston, who now owns a competing business in town, has made his facilities available as an assist. “He’s allowed us to use his shop,” Brindle said, adding that numerous other people have helped out as well.

The hurricane’s winds twisted rafters and collapsed walls. “It ripped the whole roof off of the main area we work in.”

Brindle has business interruption insurance and other coverage, but it won’t pay for all the aspects of what amounts to a total rebuild. The severely damaged office floor is not covered “because the wind blew so hard that the water blew in under the door,” and Brindle did not carry flood insurance.

“They said it was going to be bad, so be prepared,” he said, “but you never think it’s going to happen to you.”

There was enough of an advance warning, however, that “we were able to move most of the cars outside” to relative safety during the overnight period preceding Sandy’s arrival.

Up and running
“It’s a terrible situation,” said Bill Maggs, chairman of the Automotive Warehouse Distributors Association (AWDA). He told of a WD that had six employees who lost their homes and all of their possessions. Wholesalers were rallying to stay operational. “We have members who are up and running and trying to take care of their customers.”

“LKQ managers have been working with their customers to help get them back up and running by providing support and manpower,” reported Terry Fortner, the firm’s vice president of industry relations and marketing development.

“Many customers’ businesses have been devastated and owners are doing everything they can to get their businesses back up and running,” he said. “Businesses not destroyed by the storm are working day and night to try to satisfy their customers’ needs.”

“Initially we heard quite a bit about areas where trucks couldn’t get through, but the waters receded and they were able to bypass them by taking roads that weren’t damaged and get to them another way,” said Dan Freeman, CEO and president at the Auto Parts Associates, Inc. program group. “Some guys were using their own pickup trucks to get to the factory distribution centers to get their parts.”

Fluids, batteries and other maintenance products have been in high demand, along with parts for more substantial repairs. “There will be some opportunities,” Freeman pointed out.

Throughout November, Pep Boys is offering a free preventative maintenance and safety inspection to identify any automotive issues to those in the storm-affected area.

“Pep Boys is an East Coast company, and we have seen firsthand the devastation Sandy has left in its wake,” said Mike Odell, president and CEO. “Our stores and associates remain committed to helping people drive safely, and we offer these services as a way to assist people in these communities to get back on their feet during these difficult days.”

The non-cost services included:

  • Check tire condition and tread depth.
  • Check and set tire pressure to manufacturer specification.
  • Tire rotation.
  • Brake system inspection.
  • Check bulbs, wipers and air filter.
  • Check fluid levels.
  • Visual undercar inspection.
  • Visual inspection of belts and hoses.

Avoiding the salt
According to the National Insurance Crime Bureau (NICB), using preliminary statistics compiled by Insurance Services Office, Inc. (ISO), the estimated number of vehicles damaged as a result of Sandy has hit the 230,000 mark.

New York had the most vehicles affected by the storm with 130,000, while New Jersey generated 60,000 claims. The remaining 40,000 were reported from Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

The extent of the damage to these vehicles has yet to be determined, as they could have sustained minor paint scratches from flying debris or been underwater for days and rendered total losses.

Fordin at the Great Bear Auto & Body Center stresses the importance being alert to the presence of for-sale flood cars wherever you happen to live. “One thing I want to make clear to anyone buying a vehicle after this tragic event: Saltwater damage can be cleaned up and made to look nonexistent. That does not mean that the problems are gone,” she said.

Key systems can suddenly fail months or years after a seemingly successful purchase.

“If you’re going to buy a vehicle, make sure to check the title, which will show if the vehicle is a salvage or if it flooded in the past. Make sure to get an inspection, because the title may not disclose everything you need to know about the vehicle’s history,” said Fordin. “Hundreds, if not thousands, of these saltwater-inflicted vehicles will be for sale in the coming months.”

Such contaminated vehicles are truly the pits, and apparently they have already arrived in the Peach State. Issuing a public warning, Georgia Attorney General Sam Olens cautions potential purchasers of any vehicle to “have the car examined by a trusted mechanic before you pay any money for it.”

A musty odor may be noticeable, and water marks may be evident or fabrics faded, he noted, citing other aspects to also examine:

  • Metal may be flaking prematurely, and rust, mud and grit may be hidden in the crevices where water would not normally reach.
  • Check the upholstery, dashboard, glove compartment, trunk, inner doors, engine area, and under the seats and carpeting.
  • Look for drainage holes beneath the car, and check gauges and the condition and flexibility of all wires, including those below the dash.
  • Have someone do a close inspection of the alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays.
  • Test and retest the ignition, lights, wipers, air conditioner, heater and all accessories.

“With new or recently-shampooed upholstery and carpeting, and perhaps some minor body work, the damage on these vehicles may be very well disguised and difficult for even a professional to detect,” said Olens. “Nonetheless, electrical problems are practically guaranteed, and the brakes, airbags and computer system may have been seriously compromised.”

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