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Letter to the Editor
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This article originally appeared in the December 2005 Issue of INSIGHT

Leading into the New Year

by Karen Kilbane

Our feature article this month offers some practical advice about tool reimbursement. Careful reading followed up by a visit to your shop’s accountant should be on the agenda for any owner of a collision repair facility who is contemplating trying to implement tool reimbursement. There are risks and requirements, definitely, and nobody wants to run afoul of the IRS, especially when the U.S. tax collectors are promising a big increase in the number of audits they intend to perform in 2006.

Another government agency is planning to get tougher in 2006, but this is good news for quality auto body shops. (See page 3.) A representative of the Environmental Protection Agency (EPA) told the CIC meeting in Las Vegas that the agency is hoping to make the “For Professional Use Only” warning on automotive refinish packaging really mean what it says. If strictly enforced, the proposed EPA rule could eliminate many of the backyard painters that cut into a professional facility’s customer base.

INSIGHT will follow the work that will be done in 2006 by the recently re-established CIC Environmental Committee to address new air quality rules from the EPA.

NACE 2005 started off in Las Vegas with an inspiring keynote address by Rudy Giuliani, former mayor of the Big Apple. Giuliani described (See page 11.) the qualities of a good leader, among which are: having convictions, setting goals, having a positive attitude, possessing courage, getting the right training and preparation, and lastly, communicating and sharing ideas with others.

Leaders in business, whether in the body shop, at the insurance or information provider office, or at the supplier facility should incorporate Giuliani’s picture of a leader into their New Year’s resolutions for 2006.

Our TrendLine survey results this month (page 18) offer a snapshot of shop business conditions for responding collision repair facilities. Over half of those respondents experienced worse overall business conditions than in 2004, but cautious optimism for an improved 2006 made almost 80 percent anticipate increased sales volume in the New Year.

May all of our readers have a Happy and Prosperous New Year!

o

 

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