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Letter to the Editor
This article originally appeared in the January 2003 Issue of INSIGHT
©2002 Collision Repair Industry INSIGHT All Rights Reserved
Used Parts Take a Beating at CIC
Industry Awards Presented at NACE
Everest Partners Praise State Farm
Keystone Automotive Named in GM Lawsuit
Summit Software Solutions Releases End-to-End Network Solution
CCC Introduces Web-Based Dispatch Feature of Autoreverse Repair Management
Mitchell Introduces Collision Repair Network to Shops
ADP Launches Web-Based Estimating Audit Tool for Claims
January Is National Mentoring Month
Hall of Eagles Gains 5 Inductees
NABC Presents $500,000 to Camp Mak-a-Dream
Akzo Nobel Salutes Women in Industry
INDUSTRY UPDATE
Many wondered whether the 2002 International Autobody Congress and Exposition (NACE) would "feel the impact" (this year's theme) of the absence of the five major paint companies that chose to forego space on the trade show floor in December, and indeed attendance by both shops and vendors was down.
Galen Poss of Hanley-Wood Exhibitions, the company that produces the show for the Automotive Service Association (ASA), said this year's attendance was more than 24,000, the lowest since 1993. The trade show floor encompassed just 171,000 square feet in the Dallas Convention Center, down about 80,000 square feet from last year and the smallest since the 1990 show.
The absence of the often-mammoth Sherwin-Williams, Akzo Nobel, DuPont, PPG and BASF booths accounted for some but not all of this decline. There were 473 exhibiting companies at NACE '02, down by more than 75 from the preceding year, and the first time since 1992 that fewer than 500 companies had booths at the show.
Dameron shares industry views
Chris Dameron, an executive of the True2Form repair chain and 2002 chairman of NACE, kicked off the event with some brief statements on industry issues.
Dameron pulled no punches in urging shops to "be careful" about the variety of shop networks being organized by some paint companies, estimating system providers and independent businesses.
"This is adding a fourth party to our already complicated business, and will add to the ever-mounting administration work," Dameron said. "In these programs, not only may some shops have to 'buy their work,' but they have to meet the [network's] requirements and may even be audited by one more entity besides the insurer and consumer."
Dameron praised State Farm for what he called "its changing philosophy."
"Their focus is now on doing the best possible repair, and having the final bill reflect exactly what was done," Dameron said. "This is what we in the collision industry have been asking for for years. State Farm's new focus [is] to be admired. It will be a great day for our industry when this same philosophy reaches the thousands of adjusters who come into our shops every day."
He criticized the concept of insurer-owned shops, saying the success of such shops will require "steering customers to the shops." Since Allstate purchased a chain of shops, he said, about 1,000 shops have been cut from the insurer's direct repair program.
"This is only one insurance company and only one year into this conflict of interest," Dameron said. "Where is this going to lead? Our livelihood is being challenged. This is way too important to ignore. We must work together. We must unite to stop unfair competition before it spreads any further."
Bush urges optimism, service to others
Former President George Bush - or "41" as he is sometimes called to differentiate him from his son, the 43rd U.S. President - offered a mostly light-hearted address during the NACE opening session. He said he shares the belief that former presidents should lead useful lives and urged everyone to volunteer and take other actions to help others.
"There can be no definition of a successful life that does not include service to others," he said.
Though he repeatedly emphasized that he wasn't making a political speech, he talked briefly about his frustrations while in office of working with an opposition-led Congress, and said that while he was wrong about Saddam Hussein's ability to politically survive defeat in Desert Storm, the current President "does not want war."
But his more serious points were often followed by a lighter comment, such as a reference to the "Dana Carvey Principle" and his own rendition of the comedian's famous Bush impersonation.
"As much as I might be tempted to stand here and sing the praises of the United States President and the great Governor of Florida…Not going to do it. Wouldn't be prudent," Bush said, drawing applause and laughter.
He encouraged the industry to stay aware of and active in local and national politics, and praised the role of the "entrepreneurial spirit" in the nation's economy and communities. He said he is "an unabashed optimist about the future," saying the fundamentals of the nation's economy are strong. He urged confidence in the markets, and called for a return of business ethics.
Upcoming NACE plans
While some of the paint companies and others have been calling for NACE to become a biennial rather than annual event, show organizers and ASA leaders continue to maintain there is interest by most vendors and attendees in holding the event each year.
Those who cited the Dallas location as part of the cause in the downturn in attendance have apparently gotten their message through, however. NACE organizers say that for at least the next four years, the event will alternate between Orlando, Fla., and Las Vegas, Nev., starting December 4-7, 2003, in Orlando.
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Auto recyclers had to cringe at the results of the Collision Industry Conference (CIC) Parts and Airbags Committee's latest demonstration.
As it did earlier this year, the committee had a local shop order the same type of part - in this case, a decklid with taillights for a 1999 Honda Civic - from three different salvage parts providers. The shop was asked to use parts providers it normally does business with, and to not disclose that the parts were being used in a CIC demonstration.
All three of the parts that arrived - and were displayed at CIC in Dallas, Texas, in December - would have posed challenges for the collision repairer, according to Jeanne Silver, co-chair of the committee. One was a 1998 Honda decklid, which would have fit the vehicle, but was not the same model year or newer as required by some insurers. It also took two business days to arrive at the shop, and while the auto recycler described the part as in "good condition," the shop owner - and many at CIC - described it as having "light damage."
One of the other parts - which arrived the day after it was ordered - was in good condition but was even older (1997), arrived with no taillights, and was identified on the invoice as a 1998 part with taillights and hinges (also missing).
Based on the lack of a VIN sticker and its significantly lower mil thickness of paint, the third part was determined to be an OEM service replacement part that had been previously repaired. Also described by the salvage provider as being in "good condition," the decklid had a damaged taillight, and collision repairers used such words to describe the overall condition as "moderately damaged" and "junk." On the upside, it arrived at the shop just two hours after it was ordered.
Silver said any number of problems with the decklids - their age, condition, missing parts - could have created cycle time delays for the shop.
Neither the shop that helped with the project nor the parts providers were identified at the meeting. Some CIC participants were upset that pricing for the parts was not made available, making it impossible to compare the value of the three parts. But committee co-chairman Rod Enlow cited antitrust concerns for not doing so. Silver said the focus of the demonstration is more to show "real world" examples of whether salvage parts arrive as described - and the resulting impacts they can have on cycle time.
Other news and discussion at CIC in Dallas:
- The CIC Estimating Committee urged the industry to submit inquiries about labor times or other aspects of the estimating databases through the CIC website (www.ciclink. com). More than 60 such inquiries have been posted over the past two years, and "tremendous changes have been made," according to March Taylor, co-chairman of the committee. Taylor cited several examples where labor times have been changed significantly and helpful labor notes or other information have been added. But CIC Chairman Lou DiLisio said he has seen a more recent trend of the estimating system providers responding by saying that no change is warranted - or not responding at all. DiLisio and Taylor said the committee is urging shops and insurers to submit inquiries, and is seeking help in reviewing questions - and responses - to ensure they are valid.
- The Write It Right Committee sought feedback on the latest draft of its brochure being designed to help consumers understand the collision repair process. The brochure, which includes photos and brief descriptions of the steps, uses terminology consumers are likely to understand, and is expected to be finalized early next year. DiLisio said the brochure is simply a description of the typical process as it occurs today, not a recommendation for the process.
"I don't want anyone saying this is what CIC says has to happen in this particular order," DiLisio said.
- A panel discussion at CIC in Dallas demonstrated that the industry's call for standards and "open systems" has had some effect. As recently as two years ago, shops and insurers that wanted to electronically exchange claims assignments or estimates were limited to using one of the links provided by the three major estimating system providers.
This led to several thousands of shops having multiple estimating systems to meet the requirements of various insurers. The panel included a half dozen companies providing electronic claims information links that enable shops and insurers to exchange data no matter which estimating system either is using.
ABRN presents award, scholarship
Auto Body Repair News (ABRN) presented its annual "Industry Leadership Award" to Freda Thompson, who along with her husband owns Ace Auto Body in Hartselle, Alabama.
Thompson has served on the I-CAR Education Foundation Board of Trustees for two years, and recently helped the Foundation pilot its latest training program at a school in her area. In presenting the award, ABRN's Russ Thrall spoke of Thompson's "selfless involvement" and said the magazine's staff kept hearing about the work Thompson does for the industry.
The magazine also presented the Emil Stanley Merit Award to Bruce Jansen, operations manger of American Auto Body in Covington, Kentucky. As the winner, Jansen, a 33-year veteran of the industry, received a trip to NACE in Dallas to continue his management training.
VICA winners honored
Recognized during NACE were the national winners of the SkillsUSA/VICA (Vocational Industrial Clubs of America) collision repair competition, held last summer. The secondary division winner was Wayne Zoller of St. Cloud Tech College in St. Cloud, Minn. For the post-secondary division, the winner was Rick Barker of Utah Valley State College.
ASE top scorer
ASE presents the ASE Top Score Award to the individual from an ASA member shop with the highest score in the nation on the ASE collision repair and refinish tests in the past year. This year's winner was Steve Yoder, a technician at Bill's Collision Service in Middlebury, Indiana.
CIECA announces annual awards
Each year, the Collision Industry Electronic Commerce Association (CIECA) recognizes the individuals and companies that have made extra efforts during the past year to contribute to CIECA's work to create and implement standards for the various electronic links tying the various segments of the collision industry.
Mitchell International was named the "Electronic Commerce Company of the Year." Floyd Morasch of Farmers Insurance received a "Lifetime Achievement Award," and Comp-Est received a "Company Special Recognition" award.
Avi Pelc of ADP and Andy Steingruebl of CCC received "Outstanding Leadership" awards; Geralynn Kottschade of Jerry's Body Shop in Mankato, Minn., received an award for "Outstanding Contribution"; and April Turner of ADP was cited for "Outstanding Dedication."
Others receiving special recognition awards from CIECA were Mark Bogart of USAA, Mike Hastings of Fix Auto, and Jim Laning of State Farm Insurance.
Hendler honored
While the Collision Industry Conference (CIC) Chairmen's Award is not an annual award, it was presented to a second recipient just a year after its inaugural. The award was presented to CIC Administrator Jeff Hendler, a past chairman of CIC who has taken an active role in SCRS and many other industry organizations and events.
Outgoing CIC Chairman Lou DiLisio said Hendler has "spent the significant part of his life working to make this industry we know and love so special," and is "without a doubt always the first in line when someone needs help or assistance."
"Although other opportunities have presented themselves over the years, he has spent his life dedicated to this industry, "DiLisio said. "While sometimes he has received remuneration for some of the things he's done, there are many times when he's paid for his efforts out of his own pocket. Many people have tremendous impact on this industry, but I can assure you he has done his absolute best to serve this industry in many ways.
Hendler, whose family was brought to the stage as he received the award, said it's been an honor to play an active role in the industry.
"You don't do it because someone is going to hand you an award; you do it because it's the right thing to do," he said. "I'm glad I've had the last 28 years in this industry, because there isn't a better one."
Large shops win awards
Scott Biggs of the Assured Performance Network presented "Collision Business of the Year" awards.
The "curb appeal" award, recognizing business presentation and overall marketing, went to Nick Gojmeric of Collision Plus, a 3-location business in Swansea, Ill., with annual sales of $4.8 million.
The "peak performer" award went to Ken and Deloris Stafford of Southeast Collision Center, in Denver, Colorado, with annual sales of $4.2 million.
The "process management" award went to Jerry Seida of Riverdale Auto Body, a 5-location business in Dalton, Ill., with annual sales of $8.7 million.
The "overall service provider" award went to hometown guy Eddie Lennox of the 16-location Service King Collision Centers chain based in Dallas, Texas, which repairs 2,800 vehicles a month and has annual sales of $54 million.
The Everest Partners network of shops presented an award for "Extraordinary Contribution to Industry Unity" to State Farm Insurance, calling the insurer "a group of determined people working together to move us all mutually in the direction of uncompromised quality."
"Our industry has been waiting many years for a moment when the interest of the repairer, the vehicle owner and insurer could all be served with a unified approach based on mutual trust and understanding," Nick Gojmeric of the Everest Partners said in presenting the award at NACE. "We believe that moment is at hand, and [State Farm] has shown exceptional leadership in making this happen."
For the second year, ASA and SCRS jointly presented the "ASA/SCRS Industry Award" to recognize the most positive contribution made to the industry in the past year.
This year's award went to the National Auto Body Council (NABC) for its efforts to improve the image of the collision industry. Among NABC activities in the past year was helping raise $500,000 for Camp Mak-a-Dream.
"The board of directors and members of both SCRS and ASA thank you for the perseverance of accomplishing what at times must have seemed like an impossible dream," Chris Dameron, chairman of ASA's Collision Division, said in presenting the award.
Keystone Automotive Industries, Inc. has been named, along with a Taiwan-based manufacturer, in a suit brought by General Motors Corporation in the Federal District Court for the Eastern District of Michigan, Southern Division.
General Motors alleges that Keystone is distributing replacement grilles for General Motors' vehicles with a placeholder matched exactly to the "Chevrolet Bow Tie" design emblem and the "GMC" mark emblem, which infringes on General Motors' federal, state and common law trademarks. The suit claims this violates the Lanham Act and constitutes unfair competition under Michigan law.
General Motors is seeking damages in an unspecified amount as well as certain equitable relief, including an injunction.
Based on a preliminary evaluation, Keystone believes that it has meritorious defenses and intends to defend its business practices. The company estimates the products in question will constitute an immaterial percentage of total sales once it formally ascertains which products are the subject of the complaint.
Consequently, Keystone believes that whatever the outcome of the case, it will not have a material adverse impact on the company's operations or financial condition.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs, located in 37 states, Vancouver, Canada and Tijuana, Mexico.
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Summit Software Solutions, Inc. has released Collision RepairNet, an end-to-end turn-key technology infrastructure and application suite designed for repair networks of any size. It is based on a single integrated system from a shop-based business process and management solution up to and including a centralized call center and data warehouse.
Frank Terlep, President of Summit said, "CollisionRepairNet provides a collision repair network of any size the tools, technology, and information systems necessary to operate, measure, manage, and communicate as a single entity. In our view, everything begins with the collision repairer. This is where the claim, customer, vehicle, and parts converge. We designed CollisionRepairNet with this in mind. By starting at the repair facility level and integrating every CollisionRepairNet module into the shop system we capture and manage information from the time a call or assignment arrives at a call center throughout the entire repair process, including parts procurement, production, and ultimately, integration into the network's financial solution."
Because it is modular, a collision repair network can select and utilize only those applications which apply to its business model. The software integrates with other software already in use within the network.
CollisionRepairNet includes the following modules:
- C.O.P.S.: a Claims, Operations, and Production Software solution designed for large, multi-location collision repairers. It combines body shop management features with claims, communications, and customer management technologies.
- ASCENT: a simpler business management and improvement solution.
- TechCentral: a shop floor information system designed to increase shop productivity, improve internal and external communications, reduce admin-istrative expenses, and allow technicians to access technical information via the Internet.
- RepairPlan: coordinates work flow, planning, and tracking to improve production.
- NetConnect: an automatic, proactive data transmission software application that collects and pushes information profiles to, according to Summit, the "right" people, partners, and companies at the "right" time and to the "right" place.
- NetProgress: provides seamless data and imaging integration with the SeeProgress, Inc. AutoWatch system and provides end users with the ability to import data from any estimating system, combine it with digital images, vehicle status, and other pertinent claims information, and upload to a website for viewing.
- NetworkCentral: a browser-type application that provides the end user with key performance indicators for the entire repair network.
- NetStor: collects, consolidates, and delivers all network data, information, and business intelligence in a usable format.
- CallCentral: an integrated "thin-client" software application that provides a network call center with the ability to receive, log, and dispatch appointments and assignments to a repair facility.
- Profit Central: collects important financial information for the accounting system of their choice.
Summit plans to add several more modules to the Collision RepairNet platform over the next twelve months.
CCC information Systems highlighted the web-based Dispatch feature of CCC Autoverse Repair Management at NACE2002, designed to seamlessly balance workload and optimize cycle times for multi-location collision repair facilities.
"The feature helps to not only balance workload across locations, but also allows users to dispatch assignments to be dispatched by the user to best match resources and skill sets at various facilities," said Jim Dickens, CCC's senior vice president of product management and marketing. "In addition, the process of reassigning the vehicles with Dispatch is seamless to both the repair facility and the insurer."
The centralization of assignment routing also makes the process seamless to the repair facilities within multi-location operations, so that more time may be spent repairing vehicles rather than on administrative functions.
Mitchell International, Inc. began taking shop registrations for its collision repair network at NACE.
"Mitchell's Open Repair Network offers collision repairers the opportunity and reach to receive significantly more business from insurers," said Nick Notte, Mitchell's Vice President of Network Business Development.
Mitchell's network, based on an "open repair program" model, which, unlike many pre-existing direct repair programs, enables any shop to apply for inclusion on at least a first-tier locator.
Mitchell's network promises to help insurers without direct repair programs improve efficiency by having immediate access to a quality shop network. It will also allow those insurers, currently participating in DRPs, to expand their shop programs with minimal effort. For collision repairers, Mitchell's network will provide the opportunity to increase their business from insurers.
"Mitchell is uniquely positioned to deliver the industry's premier network," said Jim Lindner, Mitchell's Chairman, President and CEO. "We have 55 years under our belt providing innovative solutions to insurance and collision repair customers. We understand their needs and already provide the expert business tools they need to be successful in managing auto physical damage claims."
"We, at Mitchell, are very excited about building this network and view it as a real opportunity for shops and insurers to increase efficiencies, lower costs, reduce friction and enhance customer satisfaction," added Tony Aquila, Mitchell's Executive Vice President of Sales, Marketing and Product Management.
ADP Claims Services Group has announced the general availability of Claimsflo Passport version 3.0, an automotive claims industry's web-based auditing tool. Passport version 3.0 audits estimates quickly, based on customized rules, so auditors can make cost-controlling decisions faster.
Claims professionals use Passport online through ADP's Claims Gateway 2.0 to enable anytime, anywhere access to claims audit data.
"Passport 2.12 was a step in the right direction for auditing, and the new Passport 3.0 goes even further. The Internet access and improved performance in combination with the already significant rules engine allows me to get my job done faster -- whether I'm in the office or not," said Dave Plants, Direct Repair Shop Manager and Service Provider Liaison for Auto Club Group in Dearborn, Mich. "Add to that the new links to Claims Gateway with its estimates, optional photos, and Autosource reports and it's like having all of my claims folders with me wherever I go."
Passport version 3.0 features powerful data filters so claims professionals can pinpoint areas of concern in a specific claim or group of claims.
The National Mentoring Partnership, a non-profit coalition of organizations and companies, has created National Mentoring Month in January to help raise awareness of mentoring in its various forms, including occupational mentoring that occurs in apprenticeship programs.
Mentors At Work, an organization providing on-line automotive apprenticeship programs, and its partner shops, are emphasizing the need for businesses to work in recruiting internal mentors.
"Our Mentors At Work shop partners now have sample local press releases they can send to their local newspapers to promote their involvement in mentoring," said Mark Claypool, President and CEO of Mentors At Work.
The theme for National Mentoring Month 2003 is "Who mentored you? Thank them - and pass it on!"
Added Claypool, "Shops with effective mentoring programs have less turnover and we all know that retention is a critical factor that needs to be addressed in our industry. We think our partner shops will come out ahead due to their progressive approach to this issue."
More information on mentoring may be found at www. mentorsatwork.com or by calling 630-762-0614.
It will take at least 54 votes to become part of the "Hall of Eagles" next year. The 12-year-old Hall of Eagles honors those who have had a significant positive impact in the industry. Induction requires the vote of at least two-thirds of the current Eagles, which number about 80.
There were five new inductees for 2002, including the first husband-and-wife team, Bob and Margo Smith of Storm Appraisal in Independence, Missouri. The Smiths are long-time participants and committee chairs at the Collision Industry Conference (CIC), are active in local and national trade associations, and have recently helped coordinate several fund-raisers for the National Auto Body Council. The Smiths said their goal has always been to "give back to this industry" and to "just make a little difference."
Roger Foss of Toyota was also inducted to the "Hall of Eagles." Foss is a past chairman of I-CAR, is active in CIC, and as Lou DiLisio said in presenting the award is "always there whenever we need support or guidance or help." Foss said it was only about seven years ago that Toyota made the decision to "step out from the pack" and do more for the collision repair segment of the business.
Geralynn Kottschade of Jerry's Body Shop in Mankato, Minn., was recognized for her active role with ASA and in the industry. She said it was an honor to be counted among so many people she's considered as mentors.
Also inducted was Russell Thrall III, editor-in-chief of Automotive Body Repair News, who grew up in the industry as the son of a shop owner. Chuck Sulkala said Thrall has vision and forethought and an "awesome" ability to write and express himself on behalf of the industry.
The final "Hall of Eagles" inductee for 2002 was Chris Dameron of True2Form, and current chairman of ASA's Collision Division. He said he couldn't be prouder than to be a part this industry.
The National Auto Body Council (NABC) presented six PRIDE Awards, which honor individuals or businesses for their charitable and humanitarian contributions outside of their normal job duties. This year's winners:
- Ron Klock, a collision repair instructor at Maricopa Skill Center in Phoenix Ariz., who along with his students donate their skills for many community projects.
- Mike and Patsy Molter, owners of Twin City Collision Repair in Lafayette, Indiana, who helped raise more than $5,000 for Camp Mak-a-Dream, contribute money to St. Jude's, and repair vans for both the Lafayette Urban Ministry and the Trinity Mission.
- Paul Mabie, owner of Cascade Auto Body, Vancouver, Wash., who went above and beyond about a year ago for a homeless woman. Paul and his wife Dorothy, their employees and some vendors teamed up to repair the vehicle at no charge.
- Dan Risley, executive director of the Society of Collision Repair Specialists (SCRS), who spearheaded the association's vacation give-away that raised $255,000 for Camp Mak-a-Dream this past year.
- Akzo Nobel for its Acoat Selected National Benevolence Program.
- CCC Information Services, for its "Character of Caring" program.
Stacy Bartnik, chair of the 2002 PRIDE Award Committee, said, "We are an industry that cares, an industry that gives back to our communities. We like to share these kinds of highlights so others are inspired to get more active in their own communities."
The NABC presented a check for $500,000 to Camp Mak-a-Dream, making the dream of our industry come true because of the combined generosity and determination of all segments of collision repair.
The NABC funds will help the Montana camp for children and young adults battling cancer to earn a matching granted needed to build a new medical facility, which will be named in honor of the collision industry.
While several fund-raising events and efforts were not yet completed in early December, the NABC was confident it would surpass the $500,000 goal. SCRS presented a check for $255,000, raised through a vacation give-away. The association announced the 10 winners of $3,000 travel prizes during the Night of Achievement.
Another major contribution announced that day was $140,000 from aftermarket parts distributor Keystone Automotive. Keystone's Charlie Hogarty said more than $131,000 of that money was raised by company employees, with the company kicking in the rest to reach the $140,000 mark.
Gregg Doerfler, executive director of the foundation that operates Camp Mak-a-Dream, accepted the NABC check and expressed his thanks to the industry. "This is going to make a huge difference to kids," he said.
"I stand here today so very proud of each and every one of you and what you have done," Chuck Sulkala, who was among those spearheading the NABC fund-raising effort, said. "This is us. This is what this industry is all about. It's about us doing good things for other people, things we do every single day of our lives."
For the fourth consecutive year, Akzo Nobel honored a group of women as among the "most influential” in the collision repair industry, recognized for their commitment to their business or organization, as well as to their communities and the industry at large.
This year's honorees were: Anie Chinarian, vice president of human resources, training and administration for Caliber Collision Centers; Mary Barnett, chief executive officer of Barnett's Body Shop, in Jackson, Miss; and her daughter-in-law, Samantha Lofton, who manages the Barnett's location in Ridgeland, Miss.; Tonnika Haynes, vice president of Brown's Auto & Collision in Chapel Hill, North Carolina, and at age 26, the youngest women to receive the Akzo honor. J. Beverlie Cook, vice president of the Automotive Industries Association of Canada; Carol Mock, who along with her husband owns and operates Johnny Mock's Auto Body Shop in Turtle Creek, Penn.; and Jeanne Silver, co-owner of Butterfield Bodyworks CARSTAR in Mundelein, Ill.
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