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Letter to the Editor
This article originally appeared in the April 2009 Issue of INSIGHT
©2009 Collision Repair Industry INSIGHT All Rights Reserved
Top Economist Regalia Set to Open 30th Annual I-CAR Industry Conference
AASP of New Jersey’s NORTHEAST 2009 Highlighted by Record Attendance and Vendor Satisfaction
Fix Auto USA Signs on with the DEG
Salvage Vehicle Legislation Sent to Kentucky Governor
Mitchell International Makes Solo Plans
CARSTAR Collision Centers Welcomes Eight New Franchisees
BASF Receives Subaru Supplier Award
Famed Street Rod Painter Charley Hutton Teams with PPG
Ben Steinman and Warren Farrar Elected to CAPA Board of Directors
ASA Publishes Consumer Guidelines for Extended Service Plans
DEG Introduces Industry Veteran Bud Center Jr. as New Administrator
INDUSTRY UPDATE
Dr. Martin A. Regalia, vice president and chief economist of the U.S. Chamber of Commerce, will discuss the state of the economy and the many economic factors impacting today's Collision Industry during the Opening Session of the I-CAR 30th Annual Industry Conference. Regalia’s keynote address will be followed by two panel discussions with industry leaders detailing the return on investment of training in a challenging economy, and ways to drive improved business efficiencies, customer retention, and financial performance.
Regalia was recently named one of the top ten economists in the nation by USA Today. He and the other economic experts received this recognition based on the accuracy of their 2008 forecasts.
“I-CAR is very pleased to be able to offer to the Collision Repair Inter-Industry someone of Dr. Regalia’s expertise, experience, and stature to speak at I-CAR’s 30th Annual Industry Conference,” said John Edelen, I-CAR President and CEO. “His analysis and perspectives will provide the Collision Industry additional insight into the realities of today’s economy, and view of what the future may hold. I believe that this session is essential for decision makers in the collision inter-industry.”
Prior to coming to the Chamber in April 1993, Regalia served as the director of research for the Savings and Community Bankers of America (SCBA). He also served as a principal analyst in the Fiscal Analysis Division at the Congressional Budget Office (CBO), as an economist for the board of governors of the Federal Reserve System in both the Banking and Capital Markets Sections, and as a financial economist for the Federal Deposit Insurance Corporation (FDIC).
Regalia regularly appears on national television news and debate programs, testifies before congressional committees, and authors articles and publications on a variety of economic topics.
The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.
The I-CAR 30th Annual Industry Conference will take place July 28 – 31 at the Omni Shoreham Hotel in Washington, D.C. For more information about the conference and to register, visit: www.i-car.com/meetings.
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Following an unprecedented number of online pre-registrations, AASP/NJ’s NORTHEAST(TM) 2009 Show at the Meadowlands Exposition Center (MEC) was packed. The 32nd annual event was the first following AASP/NJ’s decision to relocate the show to the Meadowlands, and the response from exhibitors and attendees alike indicates a successful show for years to come.
“The mark of a successful trade show is traffic and sales,” explained Jeff Kern, president of Car-O-Liner Company, “and at NORTHEAST 2009, we have experienced both of these. We are very pleased with our decision to be a part of this show.”
Car-O-Liner chose NORTHEAST 2009 to unveil its newest straightening platform, Quick 42, to the New Jersey/New York Metro area, in addition to an array of time-saving measuring systems and products.
For show attendee Ellis Maitland of G&B Auto Body in Brooklyn, New York, who purchased the Quick 42 system at NORTHEAST 2009, becoming the first New Yorker to own this piece of equipment, the decision to attend this event was a no-brainer.
“I’ve visited NORTHEAST over the years in order to see the newest products and keep up with the changing technology of my industry, but the new location at the Meadowlands is so much more convenient,” he said. “It’s not only much closer to my business, but it is so easy to get to. I was looking to increase my productivity and continue my 20-year relationship with Car-O-Liner, and I was able to easily find exactly what I needed at NORTHEAST 2009.”
For Greg Leonard, sales executive for Disco Automotive, NORTHEAST 2009 was a hassle-free experience. “This has definitely been one of the easier shows for me in terms of moving my equipment in and out,” he explained. “The MEC facility is very impressive, not only in its size and appearance, but also in the helpfulness of its staff. We were able to move in our equipment without any pressure, and we were able to secure assistance when we needed it. Combined with the size and professional look of the facility itself, we are very interested in continuing to support AASP/NJ’s NORTHEAST show in the future.”
“We made the decision to move NORTHEAST 2009 to the Meadowlands Exposition Center with the confidence that we would be improving the state of our flagship event,” said AASP/NJ President Tom Elder, “but the outpouring of positive feedback we’ve been receiving, as well as the attendee enthusiasm have affirmed for us that we’ve made the right choice. We had over fifty representatives on hand from state industry associations nationwide for our annual East Coast Collision Resolution Forum and Leadership Meeting, and we had people from all walks of the auto repair industry show up for the information and guidance found in our full selection of seminars. And most importantly, the sheer numbers have shown us that the industry at large is not only satisfied with our decision, but happy about it. We are grateful for and encouraged by the enormous amount of positive feedback and support we’ve received following NORTHEAST 2009, and we are looking excitedly toward the future.”
Fix Auto has become the newest Gold Sponsor of the Database Enhancement Gateway (DEG.)
"Fix Auto has always upheld a firm commitment to support innovation and positive initiatives that involve all participants of the Collision Repair Community” said Erick Bickett, CEO for Fix Auto USA. “We have watched the growth of the DEG and have been encouraged by the results driven from an initiative that so heavily relies upon participation by all industry segments. Quite honestly, we felt we would be remiss to not support an effort that provides a mechanism for such meaningful communication within the industry.”
“We have received continuous feedback from Fix Auto locations around the country that have used the DEG, and have been very pleased with the results that have been shared with us,” added Liz Stein, Director of Network Services for Fix Auto USA. “The process has further highlighted the value of open communication, and we felt compelled to do our part to support all those involved in the inquiry process who have worked so diligently towards positive advancements.”
“The DEG greatly appreciates the support we have received from all of our sponsors,” stated Darrell Amberson, DEG Joint Operating Committee Member. “Fix Auto has always been a very generous supporter of initiatives within the industry and their decision to become a sponsor of the DEG is certainly welcomed with great appreciation.”
The Database Enhancement Gateway is an initiative which enables those who use collision repair estimating databases to provide feedback in a standardized format to the Information Providers in an effort to promote data accuracy. DEG resources include an easy-to-use website, at www.degweb.org, an inquiry form, dedicated administration for the processing of inquiries, and a current database of both pending and resolved data inquiries submitted to the three major information providers.
The DEG was created, initially funded, and is maintained by the Automotive Service Association (ASA), the Alliance of Automotive Service Providers (AASP), and the Society of Collision Repair Specialists (SCRS). Additional funding for the DEG is provided through corporate sponsorships which ensure the longevity of the DEG as one tool to help improve the collision industry.
The Automotive Service Association (ASA) has reported that the Kentucky House of Representatives has passed House Bill 309, an act relating to salvage motor vehicle titles.
H.B. 309 passed the State Senate March 12 with a 94-0 vote. The bill is now on the governor’s desk for approval.
H.B. 309 excludes the cost of parts and labor for airbag replacement from the vehicle total loss calculation. For a vehicle to be considered a salvage vehicle, the amount of damage must exceed 75 percent of its value prior to the accident. H.B. 309 states, however, that insurance will pay for airbag replacement.
This legislation should lower the number of total loss vehicles.
Mitchell International, Inc., a provider of information, workflow, and performance management solutions to the Property and Casualty claims and vehicle repair industries, has recently announced its path forward after discontinuing the merger review proceedings with the Federal Trade Commission (FTC) involving the company's proposed merger with CCC Information Systems.
"Our team is excited to expand upon the momentum we have created in the market," said Alex Sun, President and CEO of Mitchell International. "We delivered a number of exciting new products in 2008, and have even more in store for 2009 as we continue to execute our vision of enabling partners to more easily connect and collaborate both inside and outside their traditional boundaries."
Over the past year, top tier insurance carriers have selected Mitchell's WorkCenter(TM) to unify core components of their claims process, from assignment and dispatching to estimating and uploading of claims for review, to performing total loss valuations and re-inspections, and finally, approving claims for payment. The WorkCenter provides a single unified workspace built upon next generation technologies that allow carriers to seamlessly interact and streamline workflows.
"We are encouraged that the Mitchell WorkCenter is receiving such a positive reception from our customers and we are excited to expand upon this success with major enhancements planned across all modules in 2009," said Marc Brungger, Executive Vice President, Auto Physical Damage, Mitchell International.
With respect to the collision repair market, Mitchell will launch UltraMate(TM) 7 and a new version of ABS(TM) Enterprise. In a company press release, each of these new releases promises to deliver dramatic improvement in product usability and shop efficiency. The company is also announcing the launch of the Mitchell RepairCenter(TM), a next generation repair-focused collaborative workspace, at NACE 2009 in November. Mitchell intends to share RepairCenter with select customers in the coming months.
These development plans indicate that Mitchell is investing aggressively in research and development on the heels of the company's best financial performance in its 63-year history.
"Mitchell is as strong as ever, and I attribute that to maintaining great relationships with our valued partners," remarked Sun. "Our product teams are extremely energized about executing our vision, and as always, our sales and service teams are committed to upholding our proud tradition of service excellence."
Eight independent collision centers around the country have recently joined the CARSTAR family. CARSTAR Collision Centers currently includes 400 stores in the United States and Canada.
As part of CARSTAR, these new franchisees will offer a new array of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs, and turnkey service for their customers.
The new members of the CARSTAR group include:
- Action Autobody CARSTAR in Lauderhill, FL
- Gilman Autobody CAR-STAR in Issaquah, WA
- Gullotta's CARSTAR Collision Center in Englewood, FL
- Heritage Automotive CARSTAR in Fort Myers, FL
- R&R Collision CARSTAR Center in Apopka, FL
- Bjorneby's CARSTAR in Des Moines, WA
- Auto Body Xperts CAR-STAR-Jenison in Jenison, MI
- ABBA CARSTAR Collision Center in Hollywood, FL.
"We are extremely pleased to welcome these new members to the CARSTAR family," said Dan Bailey, chief operating officer of CARSTAR. "They all run great businesses and have strong histories of quality customer service. We're looking forward to building their business together, helping local car owners get back on the road with fast, reliable collision repairs, and giving back to the community at the same time."
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BASF Coatings North America has received a Subaru of Indiana Automotive (SIA) Supplier Award. The award was presented to Juan Carlos Ordonez, Group Vice President, and Joe Schmondiuk, Global Account Director for BASF Coatings North America by Masahiro Kasai, SIA President and CEO, during a ceremony held in late February at the Sheraton Indianapolis City Centre Hotel.
BASF, which has supplied paint to SIA since Summer 2008, received this prestigious award because of its outstanding performance and support during SIA’s recent conversion from solventborne to waterborne paint.
“BASF and Subaru worked together under an extremely aggressive timeframe to convert the plant from solvent to water – from shut down to full production start up– within two weeks,” said Schmondiuk.
The standard timeframe for such a conversion is several months.
Renowned street rod painter Charley Hutton has teamed with PPG Automotive Refinish for a number of automotive projects, including custom painting of the Kurt Busch Foundation Dodge Challenger.
“I’m very excited about partnering with PPG,” said Hutton, when reached at his newly expanded facility, Charley Hutton’s Color Studio in Nampa, Idaho. “I started painting cars with PPG and it’s great to be working with them again. I’ve always liked their products, support, and service. While building our new facility, we have worked hard to be environmentally friendly. PPG’s new waterborne paint lines, Aquabase(R) Plus and Envirobase(R) High Performance fit perfectly into our plan. I am really impressed with the ease, sprayability, and fast coverage of both of these products. The clarity of color is amazing and allows us to really be creative.”
Well-known in the custom car world for his work on high-end street rods, Hutton has won national recognition, including two prestigious Ridler Awards, several Street Rod of the Year and Custom Rod of the Year awards, as well as an America’s Most Beautiful Roadster Award. He made his mark in television on the Discovery Channel’s American Hot Rod show working with legendary custom car builder, the late Boyd Coddington. Hutton has also been featured on The Learning Channel’s Overhaulin,’ and on Hot Rod TV.
“We’re thrilled about our partnership with Charley,” said Jeff Griffin, PPG manager, collision segment North America “With his sharp eye, steady hand, technical expertise, and incredible creativity he’s one of the most talented painters in the country. He’s been an advocate of PPG products for years and we’re looking forward to working together for a long time to come.”
Hutton started painting cars at thirteen, working in a body shop owned by a family friend, and painted his first custom car when he was fifteen. He established his own business in 1993 at the age of twenty. Hutton will be using PPG products exclusively in his shop.
The Certified Automotive Parts Association (CAPA) has announced the election of Ben Steinman and Warren Farrar to CAPA’s Board of Directors.
Ben Steinman is a 36-year veteran of the automotive service industry, and has operated Ben's Auto Body in Mexico, Missouri since 1981. He is an Automotive Service Excellence (ASE) certified repairer and has been an active member of the ASA for over 25 years. Steinman chaired the central state of Missouri I-CAR from 1982-1985, chaired an advisory committee at Linn Technical School, and taught adult education classes for several years at the Mexico Area VoTech. He has completed ARMS training classes, and attended NACE every year since its inception.
At the 1999 ASA Annual Convention, Steinman was presented with the Phoenix Award recognizing his extraordinary contribution to the automotive service industry. He received the 2007 Humanitarian Award from ASA in recognition of his outstanding service to society. Last year, the Mexico, Missouri Area Chamber of Commerce recognized Ben for his outstanding civic responsibility and contributions in advancing the growth and welfare of Mexico. A graduate of the Automotive Management Institute, Steinman served on ASA’s Collision Division Advisory Board from 1995-2000.
Warren Farrar, a native of Nebraska, is Assistant Vice President, Claims for State Farm Fire and Casualty Company in Bloomington, Illinois. He joined State Farm in 1975 in Commercial Underwriting in the Lincoln, Nebraska office where, after several promotions, he was appointed Field Claim Specialist, Fire and Casualty in 1980. Farrar moved to the Costa Mesa, California region in 1986 as Claim Supervisor and was promoted to Claim Superintendent later that year. He became Divisional Claim Superintendent in 1987, Assistant Division manager in 1990 and Claims Manager-Property and Casualty later in 1990. He assumed his current position in 1993.
Farrar earned the Chartered Property Underwriter (CPCU), Chartered Life Underwriter (CLU), and Chartered Financial Consultant (ChFC) designations in 1988.
“CAPA is fortunate to have industry leaders such as Ben Steinman and Warren Farrar join us in our effort to ensure high quality alternative parts. CAPA’s Board represents a broad range of industry expertise which has never been more important as all parties join together to keep repairs affordable and cars repairable,” stated Jack Gillis, Executive Director of the non-profit association. “Our Board provides a unique insight into issues facing the aftermarket parts industry which is extremely important to CAPA’s continuing success.”
CAPA’s Board includes:
- Bob Anderson, Anderson’s Automotive Services, Chairman
- Bill Daly, Allstate Insurance
- Warren Farrar, State Farm Mutual Insurance
- Jackie Gillan, Advocates for Highway and Auto Safety
- Jack Gillis, CAPA
- Carl Hartman, LKQ/Keystone
- Brian O’Connor, Liberty Mutual Insurance Company
- Ben Steinman, Ben's Auto Body
- Mike West, Southtowne Auto Rebuild.
The Automotive Service Association (ASA) has announced a new and timely tool to help explain extended service plans to consumers. “Extended Service Plans (ESPs)/Extended Warranties – Consumers’ Guidelines to ESPs” is available for free to consumers at www.ASAshop.org.
With research indicating that more motorists are keeping their cars longer and getting them serviced, as opposed to purchasing new vehicles, this document helps educate motorists about the different types of extended service plans and how to select the right one to meet their needs.
“Before making a decision on whether an extended service plan is right for their vehicles, consumers need to do their homework. ASA’s ‘Consumers’ Guidelines to ESPs’ is designed to help today’s motorists be proactive in their vehicle maintenance and coverage choices, and better understand their options,” said Robbie Addison, ASA’s Mechanical Division manager.
The association created this document under the guidance of ASA’s Mechanical Division Operations Committee and its Extended Service Plan Advisory Subcommittee. Designed to educate consumers who may be considering the purchase of an ESP for their vehicle, the brochure addresses such topics as finding the right coverage and repair facility, when to purchase an ESP, types of coverage available and how the claims process typically works. These topics, along with many other tips, are included in the free document.
A PDF version of the ESP guidelines is currently available on the home page of the ASA website (www.ASAshop.org), and will continue to be accessible in the Automotive Tips section.
Bud Center Jr. is the new Database Enhancement Gateway (DEG) administrator, bringing more than 24 years of automotive industry experience to the organization. Center was hired as an independent contractor to administer the DEG project and the operations of its web- site, which will include the review and correspondence to all inquiries submitted to the site, www.degweb.org.
Center was hired by the DEG’s joint operating committee (JOC), which is comprised of members of the Alliance of Automotive Service Providers (AASP), the Automotive Service Association (ASA), and the Society of Collision Repair Specialists (SCRS). Center will report directly to the JOC.
Center started his career in the automotive industry more than 24 years ago as a technician, then spent several years on the insurance side of the collision repair industry before joining CCC where he played a key role in implementing and managing their Collision Center Connection program. He spent ten years working for a large collision repair consolidator and the last eight years as a district manager responsible for multiple service centers.
“Improving repair estimate quality and accuracy is one of the largest opportunities we have in the collision repair industry today,” Center said. “The DEG is a tremendous asset for end users to help them improve the quality and accuracy of their estimates. I am excited about this opportunity and believe my experience will allow me to pick up the important work that has already been started to ensure the continued growth and expansion of the DEG. While I plan to continue to be actively involved in other industry projects and organizations, my dedication and commitment to the DEG will be a full-time endeavor.”
Center replaces Aaron Schulenburg, who left the position in January to become executive director of SCRS.
“Bud Center is an excellent choice for the DEG Administrator position”, says Barry Dorn of the DEG JOC. “Bud is a highly respected individual with a wealth of knowledge and experience in the collision repair industry; he will do a great job.”
“I believe Bud will do a great job,” says Darrell Amberson of the CIC Database Task Force, “I think Bud’s experience will allow him to connect with the shops and make them comfortable with the DEG process. He’s walked in their shoes and understands the challenges they face.”
The DEG has processed more than 1,200 inquiries pertaining to estimating system data. Providing additional opportunities to interact with the information providers relative to the data found in their estimating platform products, the DEG has demonstrated value to end-users and other participants in the process, which is designed to promote data accuracy.
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