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This article originally appeared in the June 2006 Issue of INSIGHT
©2006 Collision Repair Industry INSIGHT All Rights Reserved
DuPont Names McCool Vice President and General Manager of Refinish Systems Business
Allstate Renews Audatex Contract for Auto Adjuster Software and Services
Summit Software Partners with Symphony Advisors and The Romans Group
Rhode Island Auto Recycler Receives John H. Chafee Conservation Award
NGA and GTS Services Partner for Auto Glass
AAIA’s Kathleen Schmatz Honored by U.S. Chamber of Commerce
Progressive Selects Barbagallo to Head Drive Group
CAA and Mentors At Work Partner with Techs for Tomorrow Apprenticeship System
I-CAR Redefines Gold Class Professionals and Platinum Individual Programs
Keystone Automotive to Relocate Some Executive Offices to Nashville
INDUSTRY UPDATE
DuPont has appointed John G. McCool vice president and general manager of the company’s Refinish Systems business. DuPont Refinish Systems produces paint and related products for the automotive aftermarket. McCool replaces Eric G. Melin, who is leaving the company to pursue other opportunities.
McCool, who most recently served as global business director for DuPont Fluorochemicals, joined DuPont in 1976 as an accountant and business analyst. Since then he has held a variety of manufacturing and business management positions in the company’s fibers and films businesses. As director of DuPont Power, he had overall responsibility for developing a corporate energy strategy. McCool also served as Six Sigma Champion for DuPont Global Sourcing and Logistics.
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Allstate and Audatex, a Solera Company, (formerly ADP Claims Services Group) have entered into an agreement for Audatex to provide mobile estimating tools and valuation services to Allstate. Under the agreement, Audatex will continue to provide Allstate’s auto adjusters with PenPro software and Auto-source valuation services.
“Allstate is pleased to continue its relationship with the ADP product, now through Audatex, a Solera Company,” said John Edelen, Allstate Assistant Vice President of Claim Strategy. “These products have been used by Allstate for many years and have proven to be valuable in our handling of auto claims.”
“ADP had a very successful 20-year partnership with Allstate and we're very excited to move forward with them as Audatex,” said Tony Aquila, Chairman and CEO of Audatex. “Allstate and Audatex share a common view of the importance of technology in the claims industry. Our goal is to ensure that Allstate always has access to an effective and efficient estimating and total loss evaluation system.”
Audatex is a global provider of claims solutions, delivering an integrated suite of applications for claims processing, estimating, shop and yard management, and business analytics for performance management.
Now celebrating the 75th anniversary of the founding of Allstate Insurance Company, The Allstate Corporation is the nation’s largest publicly held personal lines insurer.
Summit Software Solutions, Inc. has formed a strategic alliance with Symphony Advisors, LLC and The Romans Group LLC to deliver business, market, financial, technology, and strategic development advisory services to select multi-location collision repair organizations.
Frank Terlep, President of Summit, said, “Multi-location repair organizations need and want to create a sustainable competitive strategic advantage. In order to create and maintain such an advantage, these organizations must combine strategy, market intelligence, capital, and technology. Summit Software has had the opportunity to work with Symphony Advisors and The Romans Group on several projects in the past and feel our organizations, by working together with select clients, can provide those clients with the best strategic advice, market intelligence, corporate development support, and technology advice and solutions available anywhere in the collision repair marketplace.”
“I am excited to be working with the Summit Software Team,” said Matthew Ohrnstein of Symphony Advisors. “Over the past five years, Summit has demonstrated their value and commitment to clients and has been a major force behind many rapidly growing, successful multi-location organizations throughout the collision repair industry.”
“Frank Terlep brings a broad base of complimentary business and technology competencies to our newly-formed strategic relationship,” said Vincent Romans of The Romans Group. “Frank and Matt’s experience and insight within the multi-shop marketplace will allow us to provide clients with customized solutions that better ensure their winning position within their business marketplace and segments served.”
Terlep added, “Our company is very excited to have the opportunity to work with Symphony Advisors and The Romans Group. By combining our resources and core competencies, we can provide select multi-location organizations with a complete solution that will help them create and maintain a sustainable competitive advantage.”
Summit Software Solutions, Inc. is a business-to-business information technology provider that delivers information and communication management solutions to auto and truck collision repair businesses and repair networks.
Symphony Advisors, LLC is a firm focused on delivering strategic, operational and financial advisory services to the automobile aftermarket parts and services supply chain and to automobile insurance physical damage claims organizations.
The Romans Group LLC, founded in 1996, is based in Chicago and serves clients in North America and Europe. The firm provides experience-based business, market, financial, and strategic development consulting to assist management teams in achieving business goals and objectives.
Bill’s Auto Parts, a Cumberland, Rhode Island automotive recycling facility, has been awarded the prestigious Senator John H. Chafee Conservation Award by the Environment Council of Rhode Island.
The Environment Council of Rhode Island is a coalition of more than forty environmentally conscientious organizations, and the state affiliate of the National Wildlife Federation. The award was developed to honor the late senator and former governor for his efforts to preserve, protect, rehabilitate, and restore the natural environment.
Presented annually to companies, organizations, educational institutions, and municipal agencies that complete conservation projects or create conservation programs that may become models for other locales, the Council hopes to encourage others to engage in similar practices that will provide significant benefits to the citizenry, community, environment, and natural resources of the state, nation, and world.
Senator Lincoln Chafee, son of the late senator and governor, will present the awards to the Council winners.
Bill’s Auto Parts, founded in 1932, dismantles end-of-life vehicles and sells used OE (Original Equipment) parts to the public, repair facilities, and collision repair businesses. A member of the Automotive Recyclers Association (ARA) since 1993, Bill’s is also a Certified Auto Recycler (CAR) and the only Certified Auto Recycler in Rhode Island.
Certified Auto Recyclers undergo a rigorous certification process, have to re-certify every three years, and must adhere to higher standards of general business practices. Specifically, CAR businesses must properly adhere to best practice standards in the handling or all fluids, cores, tires, and hazardous materials from automobiles. They must maintain high safety standards for the protection and benefit of their employees, and must be properly licensed and comply with all regulatory requirements.
Paul F. D’Adamo, President of Bill’s Auto Parts, said, “We at Bill’s are thrilled and delighted to receive this very prestigious award. It is recognition of the quality of work we do at Bill’s and acknowledgement of our concern to preserve our natural resources, protect our environment and provide a service to the public. It validates our belief in responsible business behavior. The Bill’s Auto Parts family is honored to be recognized by the Environment Council of Rhode Island.”
Founded in 1943, the Automotive Recyclers Association represents an industry dedicated to the efficient removal and reuse of automotive parts, and the proper disposal of inoperable motor vehicles and their hazardous fluids.
The National Glass Association (NGA) has announced that glass software company GTS Services, LLC will provide the software platform supporting MyGlassClass.com, its new online training and certification program. The program plans to reach thousands of glass technicians in the glass industry.
“MyGlassClass.com is undoubtedly one of the most important and groundbreaking programs we’ve developed for the glass industry, and it deserves a world-class technological foundation. This is exactly what GTS’s learning management system will provide,” said Deborah Schneider, the NGA’s Senior Manager for Education and Training.
GTS has a broad range of experience in technology and training for the glass replacement industry through its GTS University and via telephone consultation training.
“Our partnership with the NGA marks a key milestone for our company,” said Paula Gadowski, Manager of Internal Development and Customer Training, GTS Services, LLC. “MyGlassClass.com is right in line with our objective of providing solutions that help foster a quality-oriented and professional glass industry.”
MyGlassClass.com is set to soft-launch in June. It will offer a variety of courses specifically designed for glass technicians, ranging from safety instruction to professional development to industry certification.
During the soft-launch period, MyGlassClass.com will solicit feedback from NGA members and users to provide a system that precisely meets the glass industry’s training needs.
Founded in 1948, the National Glass Association is the largest trade association representing the entire flat glass industry. Based outside Washington, DC, NGA offers certification, education and training, and serves the industry with trade publications.
The U.S. Chamber of Commerce has named Kathleen Schmatz to its prestigious Association Committee of 100, comprised of the country's leading association chief executives. Schmatz is president and CEO of the Automotive Aftermarket Industry Association (AAIA).
Founded in 1958, the Association Committee of 100 is comprised of experienced CEOs who represent association members before the U.S. Chamber of Commerce Board of Directors; enhance Chamber lobbying and coalition work; recommend programming; and strengthen outreach to the business and association community.
"Being named to the Chamber's Committee of 100 is the top honor in America for association executives," said David Caracci, AAIA chair. "This national recognition of Kathleen's leadership qualities is clearly well-deserved on a personal and professional level, but also elevates AAIA's stature and showcases the automotive aftermarket industry."
Five former members of Congress, two governors, and several "Executives of the Year" currently serve on the Committee of 100. The group includes a diverse combination of men and women from throughout the United States representing associations of all sizes, both national and international.
The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organization of every size, sector and region.
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The Progressive Corporation has appointed John A. Barbagallo President of its Drive(R) Group of Insurance Companies. Barbagallo, who joined the insurer more than 20 years ago as a claims representative, currently serves as the Drive Atlantic Region General Manager.
CEO and President Glenn Renwick commented, "I am thrilled to announce the selection of John as Drive Group President.... John has a wealth of experience in our agency business as well as in claims, marketing and operations, which makes him the perfect choice to lead this important part of our business."
Progressive also announced two other changes as part of a reorganization of the company's Executive Team:
- Brian A. Silva, currently General Manager of the Commercial Auto Group, has been promoted to Commercial Group President and will now report directly to Renwick.
Renwick noted, "Under Brian's leadership, the Commercial Auto business has grown from $250 million in written premiums in 1998 to more than $1.8 billion in 2005. He has made terrific contributions to the Commercial Auto Group and I look forward to the contributions he will make to all aspects of our business."
Alan R. Bauer, President of the Company's Direct Group of Insurance Companies since 2002, has left the company. An internal search for the next Direct Group President has commenced.
Renwick said that the selection process to name a new CFO will be completed by the end of the third quarter to succeed Tom Forrester, who will retire in early 2007.
Coatings manufacturer Valspar has reported that fiscal second quarter profit rose 22 percent on higher sales of paints and coatings.
Net income for the second quarter ended April 28, 2006 was $47,935,000 versus net income of $39,241,000 for the comparable period last year. This year's results include expenses of $0.01 per diluted share related to Valspar's manufacturing rationalization plan and $0.01 per diluted share for stock based compensation. Last year's results included $0.02 per diluted share from the favorable settlement of a lawsuit.
Sales for the quarter increased almost nine percent to $766,816,000, compared to $705,942,000 last year.
Net income for the first six months of fiscal 2006 was $70,476,000, compared with $50,939,000 for the same period a year ago. Sales for the first half increased 10.6 percent to $1,396,581,000 compared to first half sales of $1,263,086,000 a year ago.
Commenting on the second quarter and outlook for the year, William L. Mansfield, President and Chief Executive Officer, said, "Our improved second quarter performance was driven by continued sales strength in our Paints and Coatings segments, progress in recovering raw material cost increases and improved manufacturing efficiencies.
"We expect full year earnings per share in the range of $1.55 to $1.65, which is $0.10 per share higher than previous guidance. This estimate includes expensing stock based compensation and the net cost of our manufacturing rationalization plan."
To help Collision repair facilities be effective in attracting, training, and retaining the workforce of tomorrow, the California Autobody Association (CAA) has partnered with Mentors At Work, LLC, to create the “Techs for Tomorrow” apprenticeship system. Mentors At Work is helping shops nationwide address this issue head-on and its success rate with new apprentices is very high.
Mentors At Work offers the following statistics:
- Annual industry turnover is 25.6 percent, and of that, 11.2 percent leave the industry entirely - that is 24,000 technicians - and that number is rising.
- 62 percent of techs have been with their current employer for less than five years
- The average age of techs is 36.3 years and rising. That number is higher than the national average for all occupational fields.
- While the average age of techs is rising, the percentages of younger workers in our industry has declined.
- 64.4 percent of techs have been hired away from another shop. This is the industry’s short-term answer to its technician needs: raiding techs from each other’s shops, creating a domino effect in the local market. This short term approach adds to the long term challenge we are facing.
- Schools are not entirely the answer. They only provide between a quarter and a third of the industry's entry-level needs and these graduates are not anywhere near ready to do the kind of work they need to do straight out of school.
- This industry loses an estimated 7 out of 10 new hires before they work 18 months.
- The U.S. Department of Labor predicts that there will be 10 million more jobs than people to fill them by the year 2010. This prediction is even more serious for skilled trades like ours.
The CAA/Mentors At Work Techs for Tomorrow apprenticeship system, according to a joint press release, has all the necessary tools to help shops develop the workforce of tomorrow. After 18 months of research and development Mentors At Work found common denominators in successful mentoring and apprenticeship systems in various occupational fields around the world. The resulting system aims to attract, train, and retain new employees that will stay and grow within the body shop.
Mentors At Work clients typically enjoy a retention rate of 80-100 percent. In our industry that loses 70 percent of its new people, this statistic is impressive. Mentors At Work clients have been able to cut the learning curve in half, too.
The CAA/Mentors At Work Techs for Tomorrow apprenticeship system includes the following elements:
- Structure
- Mentor selection criteria
- Mentor training
- Apprentice selection criteria
- Help identifying entry-level candidates
- Apprentice orientation
- Help selling the program to the techs in the shop
- Tool and equipment strategies
- An industry standard task list to follow for training
- Accountability tools
- Suggested pay plans and return on investment tables
- Plans for working effectively with schools
- Retention strategies
- U.S. Department of Labor backing, including possible assistance in pre-screening, aptitude testing, and even the opportunity to apply for potential funding to offset some of the up-front training costs.
Mentors At Work is an active partner with its clients, providing upfront support and ongoing management of each mentor/apprentice pair. The result is a 400 percent increase in the rate of learning, high retention numbers, and apprenticeship system graduates who typically can produce 70-100+ hours of billable work a week within two to three years.
Anderson-Behel Body Shop, in Santa Clara; TGIF Body Shop, in Fremont; Sturken Auto Body, in San Jose; Bodycraft Collision Centers/Alta Sierra in Roseville; and Bertolli’s Auto Body and F. Lofrano & Son in San Rafael have joined the CAA’s Techs for Tomorrow system.
Since its inception in 1990, the I-CAR Gold Class Professionals recognition program has stood as a symbol of training dedication. The I-CAR Platinum Individual recognition program soon followed, and now both designations have been embraced within all segments of the collision industry.
More than fifteen years later, I-CAR is redefining the Gold Class Professionals and Platinum Individual programs to meet the demands of a changing industry. Both the Gold Class Professionals and Platinum Individual recognition programs will soon contain elements of tested and ongoing training.
These redesigned programs will meet the industry’s needs by better enabling industry professionals to keep up-to-date with evolving technology and repair procedures. Until January 2007, applicants for the Gold Class Professionals or Platinum Individual programs will continue to meet position-related point requirements.
Highlights of the upcoming changes include:
- Effective January 1, 2007, both the Gold Class Professionals and Platinum Individual recognition programs will require tested and ongoing training. Beginning on this date, position-related point requirements will no longer apply and I-CAR will begin using "5&2, 10&2" requirements.
- All new Gold Class Professionals applicants’ employees must have earned 5 tested points, and all new Platinum Individual applicants must have earned 10 tested points. Active Gold Class Professionals and Platinum Individuals will not be affected.
- Also effective January 1, 2007, maintaining the Gold Class Professionals and Platinum Individual designations is simple. All Platinum Individual applicants and employees of a Gold Class Professionals designated business must earn at least 2 points of tested ongoing training each year.
- All tested points can be earned through the following: I-CAR Live (also known as I-CAR Enhanced Delivery), I-CAR Online Training, I-CAR Virtual Training, I-CAR Qualification Tests, Collision TV, or I-CAR Industry Training Alliance training providers.
"Collision repair processes and procedures change at the same pace as the technology that is incorporated into today’s vehicles,” stated I-CAR Director of Business Development and North American Operations Rick Tuuri. "Ongoing training is no longer an option for the industry if we expect to provide complete and safe repairs for the consumer. Adopting these new requirements is a positive and necessary step for the collision industry, and ensures that the Gold Class Professionals and Platinum Individual programs remain the benchmarks of the collision industry’s dedication to professionalism and training."
If you have any questions or need some assistance to determine how this change will affect you, contact the I-CAR regional manager at 800.422.7456 or customer care at 800.422.7872. Additional information can also be found in the Gold Class Professionals and Platinum Individual sections of the I-CAR web site.
Keystone Automotive Industries, Inc. will relocate some of the company's senior executives to new offices in Nashville, Tennessee, with a majority of the company's accounting, IT, and marketing operations remaining in California. Select corporate offices, including the chief executive officer and chief financial officer, are expected to be relocated to Nashville over the next several months.
``Keystone has grown significantly over the last ten years and today employs more than 3,700 Team Members located across North America, with the majority of the company's operations east of the Mississippi. The decision to relocate the offices of certain corporate executives to Nashville reflects this strategic evolution and the practical benefits that we expect will be realized from locating more of the senior team to a central geographic location,'' said Richard L. Keister, president and chief executive officer.
Keystone Automotive distributes its products primarily to collision repair shops through its 136 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
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©2006 Collision Repair Industry INSIGHT
All Rights Reserved
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