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Letter to the Editor
This article originally appeared in the September 2008 Issue of INSIGHT
©2008 Collision Repair Industry INSIGHT All Rights Reserved
DuPont Performance Coatings Receives Sixth Consecutive Southeast Toyota Award
URG Offers Training Tool for Understanding Automotive Recycling
State Farm Contributes to I-CAR Education Foundation
Mitchell Releases Latest Edition of Industry Trends Report
Sherwin-Williams and Ernst & Young Partner for Scholarships to Cleveland High School Students
Collision Industry Foundation Wants to Blanket Detroit
I-CAR Education Foundation Announces Industry Survey
Shops and Insurers Discuss Potential Reforms to Direct Repair Programs
I-CAR Reports Rebound in Student Count
INDUSTRY UPDATE
John Edelen, I-CAR’s President and CEO, has announced that Tom McGee will be leaving the organization to pursue other interests.
“Tom McGee has been a great asset for I-CAR and for the auto collision inter-industry. He has been a loyal and selfless champion of I-CAR, here in North America, and in New Zealand and Australia”, said Edelen. “A true visionary, Tom McGee has influenced many of the positive developments that I-CAR has been able to achieve over the past decade and a half. The evolution and development of the I-CAR Tech Centre in Appleton, Wisconsin, as an industry standard for the research and production of quality technical training for the inter-industry was due, in large part, to Tom’s personal vision and his tireless commitment to bring it about. Tom was integral in the decision to establish the I-CAR Training Support Center in Hoffman Estates, Illinois.”
Edelen concluded, “Tom McGee’s real legacy at I-CAR will be the thousands of students who have benefitted from I-CAR courses developed with his involvement and under his direction, and the I-CAR staff which he has developed for the benefit of the inter-industry. I-CAR is grateful for Tom’s many contributions over the years, and we wish him great success in the future.”
The areas of Product Operations, Industry Relations, the I-CAR Training Alliance, and International, for which McGee was responsible, will be re-assigned among I-CAR’s staff directors.
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PPG Automotive Refinish announced the appointment of two key marketing management positions. Randy Cremeans has been appointed director of marketing, collision USCA, and Mary Kimbro has been appointed director, global color.
Cremeans will be responsible for leading the marketing strategies and initiatives for the North American collision segments. Cremeans has over seven years with PPG and has held various positions of responsibility including sales business development manager, global platform manager, global director collision segment, and his latest assignment as manager, collision segment, USCA. Prior to PPG, he had 14 years of sales and marketing positions in the coatings industry.
Kimbro will focus on innovative global strategies to continue strengthening the PPG color position. Kimbro has more than twenty years experience with PPG and has held various positions of responsibility, including technical product development chemist, training and customer service manager, MVP operations, and collision center marketing director, regional sales manager, product manager, and her latest assignment as director, collision marketing USCA. Kimbro was awarded a patent for a new coatings technology and was a recipient of PPG’s Presidential Award for her significant contributions.
For the sixth consecutive year, DuPont Performance Coatings has received a “Business Partner Award of Excellence” from Southeast Toyota Distributors, LLC (SET). This also marked the ninth time DuPont has received the award since it was introduced in 1999.
Based on quality, dedication and commitment, the award was presented at the 20th annual Southeast Toyota Distributors Business Partners Awards event in Daytona Beach, Fla. on May 24. DuPont Performance Coatings was recognized for its work with SET’s vehicle processing facilities in Jacksonville, Florida and Commerce, Georgia, which supply Toyota and Scion vehicles to all 172 Toyota dealerships in Florida, Georgia, Alabama, and North and South Carolina.
Members of the team who won the award were: Joe Grillo, on -site color and technical support; Trevor Wiggins, Hot Hues marketing support for the Scion custom painting project; Matt Hayes and Terry Vliek sales, marketing and technical support.
“It is always an honor to receive this recognition from Southeast Toyota Distributors,” said Al Salas, DuPont’s Florida District sales manager. “SET has a very professional organization, and is well positioned for continued growth. DuPont wants to be a part of that growth. In 2008 we will introduce Cromax Pro Waterborne technology at SET’s state-of-the-art vehicle processing facilities in Jacksonville. This product, with its lower solvent emissions and advanced waterborne technology, will help Toyota set the green standard for the industry.”
Presenting the award to the DuPont team were Tim Garza, vice president, accessory sales and marketing and Bob Moore, vice president and general manager, Vehicle Processing for SET.
United Recyclers Group (URG) has released a new training tool designed to promote understanding of the modern automotive recycling industry. The PowerPoint presentation, “Green, Lean, and Sustainable: The New Era of Automotive Recycling,” was prepared by the URG Advisory Group, a collection of almost 25 experts representing all aspects of automotive recycling, and is aimed at a number of audiences. It will also be distributed at the URG hospitality suite at NACE, scheduled for Las Vegas, November 5-8, 2008.
“The launch of this training tool is another major achievement for URG,” saids Michelle Alexander, URG Executive Director. “It fills a crucial need, and we expect it to be used extensively by recyclers as well as others in the collision, repair, and insurance industries. The automotive recycling industry is changing dramatically, and it’s important for everyone to understand who we are today. Automotive recycling is green, it is sustainable, and it is very cost-effective. Our quality is top notch, and the use of our original equipment (OE) recycled parts means the insurance industry, body shops and the end customer all need to know that they are getting best in class when they buy recycled. This presentation does that, and more.”
Jim Watson, owner of ABC Auto Parts in Blue Island, Illinois, and past president of the Automotive Recyclers Association (ARA), has been involved in this effort as a member of the URG Advisory Group from the start. He said, “The ARA is excited about this opportunity and wholly supports and endorses this presentation. We enthusiastically encourage everyone to view it and use it. The ARA will be using this training tool as a component in a comprehensive nationwide legislative program designed to help elected officials and others in government understand what we do in the automotive recycling industry.”
A leader in the automotive insurance industry who has been involved since the formation of the URG Advisory Group is Don Porter, CPCU, CLU, ChFC, FFSI, FLMI, auto consultant, property & casualty claims for State Farm Insurance. He noted, “The recycling industry has an exciting story to tell regarding the innovative advancements that have been made over the years. Consumers today should understand that best in class recyclers run their operations with highly trained personnel who use sophisticated models and provide top notch customer service. Many recyclers are dedicated to green initiatives by processing salvage in an environmentally friendly manner. This has the added benefits of increasing the supply of alternative parts, reducing the demand for original equipment manufacturer (OEM) parts which in turn reduces the amount of material added to our landfills.”
“This presentation will help improve the understanding and use of recycled auto parts,” said Denise Caspersen, collision division manager of the Automotive Service Association (ASA) and a charter member of the URG Advisory Group. “This training tool is important to ASA because it will give us the ability to improve communication between our members in the repair industry with insurers and automotive recyclers. We all share a common goal of improving the repair industry, and now we’ve got a great educational tool for everyone.”
The PowerPoint presentation “Green, Lean, and Sustainable: The New Era of Automotive Recycling” covers the history of automotive recycling, highlights the benefits, explains the evolution of the industry, and describes a range of best in class processes. In addition, a number of focal points for the recycling industry are explained.
“What we are really trying to do with this presentation is get everyone up-to-date”, concluded URG’s Michelle Alexander. “Most people still conjure up an image of the old-fashioned junkyard when they hear about automotive recycling. It’s important to change that misperception, and understand that our industry is green, lean, and sustainable. The URG Advisory Group has worked hard to produce an outstanding training tool, and we invite anyone interested to contact us for a copy.”
Inquiries should be directed to Michelle Alexander, URG by phone (303-367-4391) or e-mail (michelle@u-r-g.com).
United Recyclers Group, LLC is a partnership of over 330 industry leading auto recyclers that work together to improve and modernize the automotive recycling industry.
State Farm Insurance Companies has contributed $60,000 to support the I-CAR Education Foundation mission. This contribution to the Education Foundation’s Industry Partners Annual Fund will support many Education Foundation activities that promote and enhance career opportunities in the industry.
“On behalf of the I-CAR Education Foundation, I would like to thank State Farm for their generous contribution,” said Russell Thrall, Interim Associate Director for the I-CAR Education Foundation. “State Farm truly understands that the future of the collision industry is in the hands of today’s students. Their contribution shows their dedication to providing the best resources for those schools and students. With this donation, the Education Foundation will be able to focus on providing curriculum grants, instructor training grants, and student scholarships to help ensure a successful future for the collision industry.”
“There is no more fundamental way to support the health of the collision repair industry than to support the secondary and post-secondary education system that feeds the industry,” said Chris Evans, Claim Consultant, State Farm Insurance Companies. “It is vital that we all do our part to encourage education through support of the instructors, students and the schools themselves. State Farm is very proud to support the I-CAR Education Foundation in its efforts.”
Mitchell International, Inc., a provider of information, workflow, and performance management solutions to the collision claims and repair industries, today released the third quarter 2008 edition of its Industry Trends Report (ITR), the company’s quarterly publication that highlights industry-related trends, news items, and statistics.
This edition's Quarterly Feature, "The Average Severity of Hybrid versus Gas Vehicles," by Mitchell's Senior Director, Information Services, Jamison Day, discusses the recent results of a study conducted by Mitchell that examines the differences in estimates and average severities between traditional, gasoline powered vehicles and their hybrid counterparts.
"The ever increasing gasoline prices have affected virtually every aspect of our economy, including increasing the demand for hybrid vehicles," said Day. "Given their increasing popularity, we thought it would be interesting to see how the hybrid's average estimate amounts compared and explore what might be driving the differences."
Day continued, "Our study looked across different geographies and also drilled down into parts and labor dollar categories. We saw that hybrid severities were consistently higher across different states and found that both parts and labor costs were higher for the hybrid vehicle repairs."
Other points of interest in the current issue of Mitchell's ITR include:
- At $13,400, the average Actual Cash Value (ACV) of vehicles appraised for Collision losses during Q2-2008 was $177 more than in Q2-2007, and also reflected slightly older vehicles.
- In Q2-2008, the initial average gross appraisal value for Comprehensive coverage estimates processed through Mitchell servers was $2,373, a 13 percent increase, compared to $2,100 in Q2-2007. Applying the prescribed development factor for this data set produces an adjusted value of $2,367—an increase of $273 over the same period last year.
Complete content is available in the latest Industry Trends Report, which may be downloaded in PDF format by visiting www.mitchell.com.
First published in April 2001, Mitchell's Trends Report has grown in both content and circulation, now reaching more than 23,000 collision and casualty industry professionals.
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In celebration of the 100-year partnership between the Sherwin-Williams Company and accounting firm Ernst & Young, both organizations have made a $25,000 ($50,000 total) commitment to the students of the Cleveland Metropolitan School District (CMSD) in Ohio for academic scholarships.
Each organization will award five $1,000 scholarships, for annual renewal up to five years. Sherwin-Williams recipients will pursue degrees in technology and science while Ernst & Young students will focus on accounting and business. Scholarship recipients will also be given the opportunity for internships at both companies.
"As we continuously look for ways to simplify our students' transition from high school to college, generous donations such as these help to fill in the financial gap that might impede some students progression on to higher education," said Dr. Eugene Sanders, Cleveland Schools CEO.
Sherwin-Williams Chairman and CEO Christopher M. Connor provided details surrounding the Sherwin-Williams and Ernst & Young scholarship programs at a CMSD Army of Believers Scholarship Luncheon in August. Scholarships will be awarded in the Spring to seniors graduating in 2009.
Connor said, "At Sherwin-Williams education is one of the priority drivers that fuels our global growth and innovation. We are proud of our strong relationship with Cleveland Schools and look forward to supporting these young scholars as they embark on an exciting educational experience."
Donald Misheff, Ernst & Young Northeast Ohio managing partner commented, "We're excited about our partnership with Cleveland Schools. In seeking to serve our clients, Ernst & Young's 1,170 employees value ongoing mentoring and education. We never miss a chance to improve. Helping Cleveland high school students further their education is a wonderful opportunity to invest in our most precious resource - our children."
The Collision Industry Foundation (CIF) has announced the launch of its "Blanket the City: Detroit" campaign, a broad-based fundraising effort to support the Motor City that has been especially hard hit by economic changes in the automotive industry. Announced at last week's Collision Industry Conference in Scottsdale, Arizona, the campaign seeks to raise $200,000 and encourage 3,000 volunteer hours in service by December 31, 2009.
"The Blanket the City" campaign for Detroit supports the Collision Industry Founda-tion's vision to help direct charitable programs and activities of interest to the Collision Repair Industry," said Doug Webb, chairman of the Foundation. "Given the challenging economic times faced by citizens of Detroit, this effort will provide much needed resources to the charities that are participating in the program."
Funds raised by the CIF for the campaign will be used to blanket the city by providing assistance to the following worthy organizations that serve Detroit:
- Children's Home of Detroit (www.childrenshomeofdetroit.org)
- Downtown Detroit Partner-ship (www.dowtowndetroit.org)
- GLEANERS Foodbank (www.gcfb.org).
All funds collected will be distributed equally amongst the three charities.
A formal kick off of the project will be held at the Detroit Belle Isle Grand Prix. Members of the three charitable organizations and recipients of their services, as well as local business members and trustees of the CIF will participate.
To make a tax deductible donation to the CIF's Blanket the City: Detroit Campaign: www.collisionindustryfoundation.org and click on "Donations" or mail your donation, marked "Blanket the City," to:
CIF
P.O. Box 3007
Mechanicsville, VA 23116,
or call (804)368-0242.
The I-CAR Education Foundation has changed its mission, making it a purely philanthropic organization supporting career and technical schools across North America. The organization has already achieved success with the recent announcement of $100,000 worth of scholarships, school curriculum grants, and instructor training grants awarded this past Spring. However, the organization is seeking to learn as much as possible about how best to support career and technical schools and colleges for the benefit of the Collision Industry.
To better gauge the industry’s concerns, the foundation has an online survey located at: www.ed-foundation.org/ industrysurvey. The survey focuses on questions related to donation recognition, school involvement, and fundraisers to benefit schools.
All businesses are encouraged to complete the survey, which will take 5-10 minutes. Any person who successfully completes the survey will be entered in a drawing to win an I-CAR training code for an on-line class.
Whether insurer direct repair program (DRP) requirements and guidelines should be published, and whether a single person within an insurance company should be able to control whether a particular shop is allowed to participate in that company’s DRP, were among proposed reforms discussed in July by a panel of insurer, shop, and association representatives.
Organized by the Collision Industry Conference (CIC) Fair Trade Practices Committee, the panel discussion took place at the CIC, held July 23 in Scottsdale, Arizona. Panel moderator Scott Biggs of Assured Performance Network emphasized that the panelists did not necessarily write nor endorse the proposed DRP reforms, but were merely there to express their opinions of them.
Concern about what determines which shops participate in a particular DRP has some in the industry suggesting that an insurer’s decisions about which shops are selected or removed from its DRP in any market should be made by a “board of independent individuals that cannot have a close enough relationship with a shop to gain any…gratuity.”
The proposed reform, Biggs said, also calls for insurers to rotate area staff so that “no single person has long-term authority over any one shop.”
The response to the proposal was mixed among the insurers on the CIC panel. Chris Evans of State Farm said that as improved data helps the company make its program more performance-based than “relationship-based,” it becomes more difficult for a “rogue manager” to make decisions about a shop’s participation in the program for other reasons.
Randy Hanson, manager of Allstate’s PRO program, said that “if the structure creates a situation where there could be abuses, we’d want to look at the structure.” Hanson said Allstate redesigned its program about five years ago so that its reinspectors going into shops do not make decisions about which shops participate in PRO.
But Michael Lloyd of California Casualty dismissed the proposal.
“I believe this isn’t going to be popular, but my opinion is that it is our business and I don’t think we should be dictated to as to how we should operate,” he said.
Dan Risley, executive director of the Society of Collision Repair Specialists, said several of the proposed reforms that would make shop selection criteria and program guidelines more publicly available would eliminate some of the most common complaints he hears about DRPs from shops. Too often, he said, shops do not know if the “moving target” DRP shops are given by the insurer are national mandates from the company or just the “flavor of the day” for a local or regional manager.
Almost all of the panelists had some concern with a proposed reform that any “increase in volume of referrals (to a shop) be based on performance.” All agreed customer choice of shop needs to be honored. Risley said participation in the program – not necessarily referrals – should be based on performance. And panelist Gary Wano of G.W. & Son Auto Body in Oklahoma City, Oklahoma, questioned how an insurer knows the best performers in a market if the performance of shops not on that insurer’s program is not being tracked.
After a tumultuous year that included staff layoffs and a change in top leadership, I-CAR leaders worked hard at the training organization’s annual meeting in late July to convey that I-CAR is newly refocused on its customers, volunteers, and mission.
“When I see what an improved and improving organization was able to deliver in fiscal 2008 in a difficult economy by most measures, I’m optimistic about our challenges and our ability to meet them over the next 18 months,” CEO John Edelen told attendees at the annual I-CAR gathering, held in Scottsdale, Ariz.
Changes helped I-CAR slow its financial losses, ending its latest fiscal year with a loss less than half that of the previous year. And Edelen was able to report another piece of good news: a 15 percent rebound in attendance at I-CAR classes. The 115,000 “student units” taught – one unit equals one student taking one class – was still far from the peaks of 150,000 or more in the late 1990s through 2002, but was about equal to I-CAR’s average annual student counts for 2003-2006 fiscal years.
As part of its effort to listen to the various segments of the market on which I-CAR depends, the organization set aside three hours of its annual meeting as an open forum to hear feedback from shops, insurers, and automakers. About 150 people turned out to share their questions, frustrations, and suggestions withthe training organization.
Edelen said I-CAR is already working to address some of the issues raised at the open forum. Six I-CAR industry advisory councils have been created, each focused on a specific industry segment, he said, and corresponding staff teams also have been created internally to ensure “the voice of the customer for the six industry segments will be sought and utilized to shape the direction of I-CAR’s activities in the future.”
He said a committee is helping to ensure that I-CAR invests “only in the development of those products and services that would be valued by I-CAR customers.” For example, I-CAR is developing new classes on alternative fuel vehicles, and on hazardous air pollution reduction for shops in response to a new EPA refinish regulation (scheduled to go into effect in 2011) requiring such training. Improvements to course descriptions will be designed to help students select the training most relevant to their needs, Edelen said.
He said I-CAR is reviewing all its pricing, acknowledging that online training pricing may be too high.
“In addition, we have needed to address our discount structure,” he said. “We need to continue to acknowledge our best customers with an appropriate discount, but we have needed to reduce the overall discounts.”
A change in I-CAR’s fiscal year will make planning and adjustment easier, he said, because it will shift I-CAR’s traditionally highest period of revenue to the first half of its fiscal year rather than the second half.
Edelen also said online class registration with payment required in advance will be implemented later this year, and that Gold Class and Platinum individual requirements, processes and reporting will be reviewed.
“We have heard how complex we have made it to do business with I-CAR,” Edelen said. “We have to go after that with a vengeance.”
Lastly, he said I-CAR’s instructor base is aging, and the organization must do more to recruit new instructors and volunteers.
“I believe that I-CAR would not be what it is today, nor will it be what it needs to be tomorrow, without the commitment and hard work of our volunteers, committees and instructors,” Edelen said. “For 99 percent of our customers, they are the face, the eyes and the ears of I-CAR. We owe these volunteers, committees and instructors our gratitude, our respect and appreciation.”
I-CAR will celebrate its 30th anniversary at an annual meeting scheduled to be held in Washington, D.C., next February 5-7.
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©2008 Collision Repair Industry INSIGHT
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