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Letter to the Editor
This article originally appeared in the June 2007 Issue of INSIGHT
©2007 Collision Repair Industry INSIGHT All Rights Reserved
AASP-MN Bill Signed by Governor Pawlenty
Keystone Automotive Industries Reports Record Year-End Results
ARA Launches Green Sticker Program
Lee Smith Appointed Director, Strategic Growth for PPG Automotive Refinish
Summit Software Solutions Reports Record Revenues in 2007
Mitchell’s 2007 Full Speed Ahead Road Show Starts Out
Automotive Training Institute Commits $25,000 to AMI’s Excel
PPG Donates $10,000 to SkillsUSA
WIN Event Is a Sellout - and a Success
Working Mother Magazine Names Allstate Best Company for Multicultural Women
Pursuit of Happyness Author Chris Gardner to Keynote NACE 2007
INDUSTRY UPDATE
On May 17th, Minnesota Governor Tim Pawlenty signed into law legislation proposed by the Alliance of Automotive Service Providers, Minnesota (AASP-MN).
House File 1949/Senate File 1542 prohibits insurers from adjusting a repair shop estimate when the extent of damage is in dispute unless the insurer conducts a physical inspection of the vehicle. The legislation also prohibits insurers from requiring that shops use a particular vendor for parts procurement. The legislation will become effective on August 1, 2007.
Minnesota Statute 2006, section 72B.092, subdivision 1, is amended to read:
Prohibitions on insurer. No adjuster or insurer, director, officer, broker, agent, attorney-in-fact, employee, or other representative of an insurer shall in collision cases:
- Adjust a damage appraisal of a repair shop when the extent of damage is in dispute without conducting a physical inspection of the vehicle; or
- Specify the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the vehicle. This clause does not require the insurer to pay more than a reasonable market price for parts of like kind and quality in adjusting a claim.
“From a practical standpoint, the passage of this legislation means that repair shops will no longer be tied up in disputes based solely on an insurer’s or third-party auditor’s view of a photograph of a damaged vehicle,” stated Judell Anderson, AASP-MN Executive Director. “In addition, the legislation ensures that shops can continue to work with parts suppliers with whom they have established a good working relationship and who they can rely on to provide quality parts and good service.”
AASP-MN secured strong bipartisan support for its measure in the House and Senate. On final passage, the bill received a vote of 64-0 in the Senate and 133-0 in the House. AASP-MN is gratified that the Chairs of the House and Senate Commerce Committees – Representative Joe Atkins (DFL-Inver Grove Heights) and Senator Linda Scheid (DFL-Brooklyn Park) agreed to be the Chief Authors of its bill.
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Keystone Automotive Industries, Inc. has reported record earnings and sales for its fiscal 2007 fourth quarter and year ended March 30, 2007, supported by continued market share growth for quality alternative automotive replacement parts.
Net income for the fiscal fourth quarter climbed 51.1 percent to $11.4 million from $7.6 million a year ago. Net income for the fiscal 2007 fourth quarter included one-time gains of approximately $886,000 related to insurance recoveries for prior-year property loss claims and the company's portion of an antitrust lawsuit settlement concerning automotive refinishing paint pricing between January 1, 1993 and December 31, 2000.
Operating income increased 33.6 percent to $17.1 million from $12.8 million a year ago. Operating margin was 8.5 percent compared with 7.1 percent a year earlier. Net sales for the fiscal fourth quarter climbed 11.3 percent to $200.2 million from $179.9 million last year. Same store sales growth for the fourth quarter was 11.2 percent.
Net income for the full fiscal year climbed 36.2 percent to $30.3 million from $22.3 million a year ago. Operating income for the same period increased 33.9 percent to $47.6 million from $35.6 million a year ago, with operating margin 6.7 percent compared with 5.7 percent a year ago. Net sales for fiscal 2007 climbed 13.6 percent to $714.0 million from $628.3 million last year. Same store sales growth for the full fiscal year was 11.1 percent.
Gross margin for the fiscal fourth quarter was 45.2 percent compared with 45.6 percent last year. For the full fiscal year, gross margin was 44.6 percent compared with 44.9 percent. The company is continuing initiatives to enhance its in-stock availability of parts across the company's network through the implementation of a cross-dock logistics strategy. As a result of this strategic initiative, certain operating expenses have been shifted from selling and distribution costs on the income statement to cost of sales.
"The company's record financial performance for fiscal 2007 highlights the benefits of ongoing organizational and strategic initiatives our team is implementing to improve parts availability throughout the country," said Rick Keister, president and chief executive officer.
He noted that the company's start-up bumper remanufacturing operation in Mexico is proceeding on schedule, with an overall negative after-tax impact of approximately $128,000 for the quarter and $799,000 for the full-year.
Keister indicated that lights, bumpers, and crash parts contributed more than 69.0 percent of total sales for the fiscal year, with light sales climbing 21.6 percent, bumpers 13.9 percent and crash parts 14.2 percent compared with the prior year.
He noted that the continuing International Trade Commission investigation with respect to the importation and sale of certain aftermarket collision replacement parts for the Ford Motor Company's F-150 truck is progressing. Fiscal fourth quarter results were not significantly impacted by legal fees associated with this. However, full-year results included approximately $1.3 million in additional legal fees, primarily due to costs associated with the ITC case.
The Automotive Recyclers Association (ARA) has launched the Green Sticker program designed to educate consumers on the benefits of recycling vehicles.
Addressing the ecological concerns of the global community, the objective of the Green Sticker program is to provide a score card of the recyclability of each new vehicle. Using materials that are cost effective to recycle, documenting the recyclable materials and recycled parts removed will increase the value of the Green Sticker. The Green Sticker program will educate the new car consumer and encourage consumers to consider the vehicle’s recycled content (Green Sticker} in making a purchase.
“Automakers long have recognized the desirability of vehicle recycling,” said Ginny Whelan, President of the ARA Educational Foundation. “Auto-motive Recyclers and shredders have the most extensive and efficient network in place to make this program work.”
The Green Sticker program will be developed from a pre-competitive, cooperative data-base of recyclability provided by automakers and automotive recycling industry. The measurable content of the database will be used to value the Green Sticker assigned to every new vehicle model manufactured.
Automakers that continue to design and devise new uses for the recycled material will value the Green Sticker as a marketing tool to bring environmentally concerned consumers to purchase the models with the most recyclable content.
ARA and Worldwide Automotive Recycling Associations will promote, monitor, and facilitate the program. Funding for the Green Sticker program will be provided by sponsors, the End-of-Life-Vehicle (ELV) programs, and independent automotive suppliers.
“Designing vehicles and supplier materials with recycling in mind further reduces the solid waste stream,” noted Whelan. “The Green Sticker will promote consumer awareness of the importance of proper disposal and recycling of ELVs.”
As pressure to recycle increases, auto manufacturers worldwide are likely to demand that suppliers and manufacturing facilities use more recycled material. The Green Sticker program can measure that recyclability and provide point of purchase window stickers for all new vehicles, with the goal to increase consumer awareness of the recyclability of vehicles that carry a Green Sticker.
Founded in 1943 and based in Fairfax, Virginia, 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.
John Outcalt, general manager, Automotive Refinish, North America, has announced that Lee Smith, director, Refinish Canada since 2002, has been appointed Director, Strategic Growth and Acquisitions for PPG Automotive Refinish, North America.
Smith will be responsible for developing growth strategies to meet Refinish short and long-term profit and growth objectives.
Smith has been with PPG for 25 years, holding various positions of responsibility. His in-depth knowledge of the automotive refinish industry, and past successes made him the leading candidate for this new position. During his tenure with PPG Canada, he has positioned the company for continued success in the future.
Brian Roberson, formerly a Senior Account Manager for the PPG Aerospace business unit, will succeed him.
Smith will relocate to Strongsville, Ohio, the North American headquarters for PPG Automotive Refinish.
Summit Software Solutions has announced record sales revenues from its body shop management software systems and consulting services. Sales revenues for the first four months of 2007 were the best ever for the company and were almost 60 percent higher than 2006.
Summit President and Co-Founder Frank Terlep commented, “We are very pleased with our year to date results. It reaffirms our position as the fastest growing and most referred shop management software company in the collision industry.
“As we look to the future,” Terlep continued, “we see continued growth and profitability because our business model identifies at least 20,000 collision repairers that need, want, and are prepared to invest in affordable and easy to use tools that can help them reduce cycle time, improve communications and documentation, increase sales and cash flow, while drastically reducing administrative costs.”
Summit’s CollisionRepairNet software suite presently offers collision repairers more than 18 different technology solutions designed to help them operate their businesses better, faster, and more profitably. These technologies include five different body shop management systems, a web-based vehicle status and communications system, advanced scheduling and production management systems, data warehousing, digital repair order management, and more.
Summit Software Solutions, Inc. is an information technology provider that delivers business, process, production, scheduling, and communication management systems to auto and truck collision repair businesses and repair networks.
Mitchell International, Inc., a provider of performance management solutions to the automotive insurance claims and collision repair industries, has announced its third annual “Full Speed Ahead!” Road Show, starting June 7 through October 11, 2007, and making stops in Miami, Oklahoma City, Columbus, Des Moines, Los Angeles, Virginia Beach, Pittsburgh, Toronto, and Phoenix.
The road show is designed to educate autobody repair shops about the latest tools and techniques for optimizing business performance. This year’s road show focuses on how successful shops are adopting new technologies and strategies in today’s increasingly competitive market, and provides a unique opportunity for shop owners and managers to hear from respected industry experts, to network, and to share best practices.
The 2007 Full Speed Ahead! Road Show will cover a range of topics including:
- The Changing Collision Repair Marketplace
- Database production and accuracy
- Improving Shop Manage-ment to Maximize Profits
- What’s New at Mitchell?
Commenting on last year’s Full Speed Ahead! event, Lenny Chamberlain, from Lenny’s Auto Body in Middleboro, Massachussetts, said, “The knowledge I received from Mitchell’s Full Speed Ahead seminar is put to use for our business every day. Mitchell is a lot more than just an estimating system company - they are helping us in all areas of our business.”
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The Automotive Training Institute (ATI) has joined the Automotive Management Institute’s (AMI’s) resource development effort EXCEL, with a commitment of $25,000. The commitment to AMI will be combined with other leadership contributions to continue AMI’s mission of providing and promoting practical business management education tailored to the automotive service and collision repair industry.
ATI is a recognized leader in management training. Founded in 1974 by Chris” Chubby” Frederick, the company is located in Savage, Md. and provides workshops, training, and coaching for the automotive service industry. ATI has over 80 associates throughout the U.S. and Canada coaching thousands of shop owners.
“My goal is to respond to our clients' request to AMI-approve our entire Re-engineering program which would give our clients over 200 AMI credits at the completion of our program,” commented Frederick, an AMI- approved instructor since 1999.
AMI Chairman George Witt, AAM, owner of George Witt Service, Inc. in Lincoln, Nebraska stated, “As president of Automotive Training Institute, Chris has demonstrated his dedication to AMI and the automotive industry through his financial commitment and his eagerness to share his vast knowledge with shop owners and managers across the country.”
“We extend our greatest appreciation to Chris for his tremendous support and commitment to the Institute,” said AMI Executive Director Toni Slaton, AAM.
AMI was established to answer the demand for continuing education tailored specifically for the business needs of the automotive service industry. The Institute offers the Accredited Automotive Manager (AAM) designation, the first business management accreditation exclusively for the automotive service professional. To date, AMI programs have attracted more than 160,000 enrollments throughout North America.
PPG Automotive Refinish has donated $10,000 to SkillsUSA, a national non-profit organization serving teachers, high school, and college students who are preparing for careers in trade, technical, and skilled service occupations. Formerly known as Vocational Industrial Clubs of America (VICA), the organization serves as a link between education and industry, helping students to excel in their chosen field and qualify for jobs in the real world. More than 284,000 students and instructors join SkillsUSA annually.
“Our relationship with industry sponsors like PPG is a ‘win-win’ situation,” said Tom Holdsworth, director for the SkillsUSA Office of Communications. “The input we get from PPG helps technical instructors to incorporate new products and new developments in refinish technology into their curriculum, so our students will have the skills to meet the needs of the industry when it’s time for them to enter the work force. Industry donations help to keep our programs current and allow us to reach more and more students each year. We are grateful to PPG for their continuing support.”
PPG has been a supporter of SkillsUSA for many years. A number of PPG employees and distributors act as judges at local, state, and national skills competitions and many PPG personnel have held positions on the USA Advisory Board and the SkillsUSA Youth Development Foundation since the organization was founded in 1965. In addition, SkillsUSA's Youth Development Foundation assists in providing funding for the SkillsUSA Championships. This year more than 5,000 competitors are slated to compete in 87 different events.
The inaugural Women’s Industry Network (WIN) conference, held April 29-May 1 in Phoenix, Arizona, featured 115 attendees, the vast majority of them women. Event planners had predicted 100 would attend. Attendees came from more than a dozen states and Canada.
“It was a huge success,” said Sheila Loftus, WIN’s executive director. Attendees, she noted, ranged from “students to CEOs. We had women painters, body techs, sales managers, vice presidents, shop owners, managers, and human resource personnel.”
The conference featured presentations by industry consultants Matthew Ohrnstein and Marcy Tieger of Symphony Advisors, State Farm claims vice president Susan Hood, Enterprise Rent-a-Car vice president Mary Mahoney, and Laura Angell, a vocational instructor at Warren Tech in Colorado. The conference also featured panels on how to recruit and retain women in the collision repair industry and successful strategies for women in business.
“The WIN events were a mixture of networking and educational seminars and speakers,” Loftus said. “Everything at the conference was designed to help women advance in this industry.”
Hood shared her five lessons of leadership, which led to her business success.
Angell encouraged attendees to get involved in their local vocational schools, which are generally underfunded. “If you work with the schools, you’ll have the inside track for getting recruits,” she said.
Mahoney shared with attendees the secret to Enterprise’s success: Treat customers like your neighbor, and take care of your employees. Growth and profitability, she said, would follow.
During one of the panel discussions, Gigi Walker, a California body shop owner, encouraged women to “teach the male staff to be receptive to having women on the shop floor. There are women who would like to go out in the shop. Make the shop a respectable place for any person to work.”
On the day following the panel, WIN attendees developed a list of ideas to attract women to the collision repair industry. They included being present at career days, creating pleasant work environments, speaking with students, and hosting family-friendly open houses.
Entertainment at the conference’s gala dinner included a 13-member, all-women mariachi band.
One of the attendees summed up the spirit of the entire conference in a single word: sisterhood.
In addition to hosting the conference, WIN announced its board of directors, which includes four executive officers: Geralynn Kottschade of Jerry’s Body Shop in Mankato, Minn., chair; Kathy Mello of TGIF Body Shop in Fremont, Calif., vice chair; Trish Serratore of ASE in Leesburg, Va., treasurer; and Gigi Walker of Walker’s Auto Body and Fleet Repair in Concord, Calif., secretary; Frederica Carter of Akzo Nobel Coatings in Norcross, Ga.; and Marcy Tieger of Symphony Advisors in Irvine, Calif. Catherine Babiar of Ontario, Canada, is WIN’s international director. WIN’s executive director is Sheila Loftus.
Eventually, WIN will have a board of directors of 12. For those interested in serving on the WIN board of directors, download an application at www.womensindustrynetwork.com.
WIN is a not-for-profit association dedicated to encouraging, developing, and cultivating opportunities to attract women to collision repair while recognizing excellence, promoting leadership, and fostering a network among the women who are shaping the industry.
Working Mother magazine has announced that Allstate is a 2007 Best Company for Multicultural Women. Now in its fifth year, the Working Mother Best Companies for Multicultural Women initiative celebrates employers that are establishing groundbreaking diversity policies and programs to encourage the hiring and advancement of African-American, Hispanic, Asian-American and Native American women.
"Allstate is making a difference in the way corporate America views diversity and its multicultural employees," said Suzanne Riss, Editor in Chief, Working Mother magazine. "They're holding managers accountable for helping workplace diversity thrive. We have the good fortune to live in one of the most culturally rich countries in the world, and Allstate recognizes that this richness is a workplace asset. Harnessing the wealth of talents and perspectives that people of different backgrounds have to offer is helping Allstate excel in our increasingly global and competitive world. Allstate is truly leading by example."
Profiled in the June issue of Working Mother magazine, Allstate is recognized for its unique programs for multicultural women, which are a part of the company's overall commitment to diversity.
"Diversity is an Allstate business strategy and a strong part of our own corporate culture," said Anise Wiley-Little, Chief Diversity Officer. "Our company has grown by serving customers and welcoming employees who reflect the diverse marketplace which we serve. We continue to challenge ourselves to be appropriately represented by women and people of color in our general employee population, agency owners and within our leadership ranks."
Today, Allstate's workforce represents the diversity of Allstate's customers and the marketplace. Of the nearly 36,000-person Allstate employee workforce, 60 percent are women, and nearly 30 percent are minorities. More than 40 percent of officers and managers are women and nearly 20 percent come from one of five minority groups. Of the nearly 15,000 Allstate agencies, nearly 40 percent are women and more than 20 percent are minorities.
To support the development goals of its diverse workforce, Allstate provides continuous learning opportunities that include internal online learning resources and events sponsored by external vendors, business conferences, and professional associations. And in addition to required diversity training for new employees, Allstate provides tuition reimbursement for higher education and professional onsite courses to help employees grow and advance.
Other company benefits include:
- Free child car seats for employees
- Adoption reimbursement for new parents
- Lactation programs for nursing mothers
- Employee network groups
- Onsite health seminars including smoking cessation and Weight Watchers programs
- Well & Fit program
- Onsite fitness center
- Onsite oil changes
- Discounts on insurance.
The complete 2007 Best Companies for Multicultural Women - including profiles of the winning companies and more stories on diversity in corporate America - appears in the June issue of Working Mother.
Working Mother selected the winners based on the detailed application completed by each company. Private and public firms based in the United States are eligible to apply for the initiative. Companies supplied 2006 data about hiring, pay, and promotion of multicultural employees. This year, Working Mother gave the most weight to questions involving representation, recruitment and retention of women of color.
Founded in 1979, Working Mother magazine reaches nearly 3 million readers and is the only national magazine for career mothers.
The 2007 International Autobody Congress & Exposition (NACE) has announced that author and philanthropist Chris Gardner will share his remarkable story during the NACE 2007 keynote presentation. DuPont Performance Coatings is the sponsor of the Opening General Session taking place November 1 at the Mandalay Bay Convention Center in Las Vegas.
Because of surmounting acute obstacles on his road to success, Gardner is now a sought after motivational speaker, addressing the keys to self-empowerment, beating odds, and breaking cycles. His amazing story was published as an autobiography, The Pursuit of Happyness, becoming a New York Times #1 bestseller. Gardner was also the inspiration for the movie The Pursuit of Happyness, released by Columbia Pictures in December, 2006. Will Smith stars as Gardner, and Gardner is an associate producer. The movie was #1 at the box office its opening weekend.
A series of circumstances in the early 1980s left Gardner homeless in San Francisco and the sole guardian of his toddler son. Unwilling to give up Chris Jr. or his dream of financial independence, Gardner started at the bottom. Without connections or a college degree, he earned a spot in the Dean Witter Reynolds training program. Often spending his nights in a church shelter or the bathroom at a Bay Area Rapid Transit station in Oakland, Gardner was the sole trainee offered a job at Dean Witter Reynolds in 1981. He spent 1983-1987 at Bear Stearns & Co., where he became a top earner. In 1987 he founded the brokerage firm Gardner Rich & Co. in Chicago. Currently, Gardner is the owner and CEO of Christopher Gardner International Holdings with offices in New York, Chicago, and San Francisco.
“We are pleased to provide our NACE attendees the opportunity to hear Chris Gardner’s dynamic and candid rags-to-riches story,” said Ron Pyle, ASA President and Chief Staff Executive. “His message of overcoming obstacles, balancing life’s responsibilities, and ultimately succeeding will inspire and motivate everyone in attendance, leaving them excited for the NACE Expo opening.”
Gardner's extraordinary story illustrates the nurturing and sustaining power of positive role models. Gardner’s belief in himself and his dreams, along with his refusal to give in to self-doubt, promises to inspire the NACE audience and confirm that life is full of possibility if you put your heart into it and don’t give up.
NACE 2007 will be held October 31-November 3, at the Mandalay Bay Convention Center in Las Vegas, Nevada, USA during Automotive Aftermarket Industry Week (AAIW), taking place that same week in Las Vegas.
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