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Letter to the Editor
This article originally appeared in the March 2010 Issue of INSIGHT
©2010 Collision Repair Industry INSIGHT All Rights Reserved
Mitchell 2010 Property & Casualty Conference a Success
PPG to Exhibit at Northeast 2010 Tradeshow
Sonic Automotive Announces Offering of Senior Subordinated Notes
CynCast Shop Performance Value Rating Program Is Topic of Upcoming CREW Webcast
AMI Accepting Applications for the Richard Cossette/Gale Westerlund Memorial Scholarship
CCAR Recognizes Pohanka Collision Center of Virginia as First-Ever GreenLink Shop
San Ramon Body Shop Receives Green Business Award
CAPA Moves Forward on CAPA 501 Standard for Bumpers
PPG Recognizes Auto Color Supply as 2009 Platinum Distributor of the Year
NABC Receives Associations Advance America Award of Excellence
Travelers Donates $500,000 to Expand The Hole in the Wall Gang Camp's Hospital Outreach Program
INDUSTRY UPDATE
Mitchell International, Inc., a provider of information, workflow, and performance management solutions to the Property & Casualty claims and Collision Repair industries, has concluded a very successful 2010 Mitchell Property & Casualty Conference, held March 7-10 at San Diego's historic U.S. Grant Hotel. After many years of hosting popular market segment events, this year's conference brought P&C insurance claims professionals from the Workers' Compensation, Auto Casualty and Auto Physical Damage (APD) arenas together in a single event to share ideas and learn about best practices being implemented across the industry.
Participants were able to leverage Mitchell's unique position of servicing both the property and casualty sides of the market to hear from the best and brightest in claims technology and gain insights across each segment and what's in store for the future.
"The 2010 Mitchell Property & Casualty Conference helped us achieve our goal of continually expanding the value that our conferences bring to our attendees. In doing so, we were able to use our breadth of knowledge to inspire and share technology innovation and insights with representatives across the claims industry," explained Alex Sun, Mitchell's President and CEO.
Keynote speaker Larry Bossidy inspired insurance carrier executives, claims processing experts, and consultants from the automobile and workers' compensation insurance industries, drawing on his wealth of experience and accomplishment, which has made him one of the most respected executives in recent history. He is the author of two landmark books on business leadership: Execution: The Discipline of Getting Things Done and Confronting Reality. Bossidy is the former Vice Chairman of General Electric, CEO of Allied Signal, and CEO of Honeywell, International, Inc.
Wayne Sharrah, Chief Claims Officer at Esurance, added, "Only Mitchell is able to bring the industry together like this. The conference provided an amazing opportunity to network and share best practices with peers facing similar challenges, as well as a view into what's next for the claims industry. Gaining insights and new perspectives about technologies and processes being implemented by leading firms today has helped me to identify new ways of bringing even greater value to our customers. I truly look forward to next year's event."
Over three days industry experts and claims professionals, including over 160 claims executives representing 70 percent of the top 20 insurance companies, engaged in presentations and panel discussions that gave them the opportunity to interact in focused track sessions, delving deeply into Auto Casualty, Workers' Compensation and APD claims issues.
Topic highlights from the conference included:
- Ultimate Workflow Opti-mization
- The Power of Analytics for Improved Performance
- Top P&C Industry Trends and Opportunities
- Predictive Modeling for Claims Operations
- Creating New Services with Emerging Technologies.
Mitchell International enables millions of electronic transactions between more than 30,000 business partners each month to enhance partner productivity, profitability, and customer satisfaction.
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PPG plans to exhibit at the Northeast 2010 Tradeshow, March 19 – 21 at the Meadowlands Exposition Center in Secaucus, New Jersey, booth #227.
With VOC emissions regulations expected to be mandated in the near future for the Northeast region, PPG’s display will highlight its industry-leading Envirobase(R) High Performance and Aquabase(R) Plus waterborne products. Seminars covering the PPG “Convert with Confidence” process will demonstrate the ease of switching to PPG waterborne coatings. An MVP Throughput Solutions “Lean Six Sigma” seminar will also be presented.
Dave Perewitz, one of America’s best-known motorcycle builders and customizers, will sign autographs at the PPG booth. Regarded as a living legend among hot rod, street rod, and motorcycle enthusiasts, Perewitz is the imaginative force behind Perewitz Cycle Fabrication, his family-run shop in Bridgewater, Massachussetts. He is known for his one-of-a-kind, hand-built creations and awesome flame designs – a combination of design, engineering, performance and beauty.
PPG will also exhibit an environmentally-friendly, customized 1956 Ford F-100 pickup truck. The award-winning street rod, restored by Steve’s Restorations and Hot Rods, in Marcy, New York, has appeared at the SEMA Show in Las Vegas, the East Coast Indoor Nationals in Maryland, and the Syracuse Nationals in Syracuse, New York. The truck sports a dazzling paint scheme done with PPG’s VOC-compliant Envirobase High Performance waterborne coatings and the Vibrance Collection(R) of custom finishes, demonstrating the creative capabilities of PPG’s waterborne products. The pickup also features other ecologically-sound attributes including a big block Ford 460 engine that runs on 100 percent liquid propane and produces close to zero emissions.
The Northeast Tradeshow is in its 33rd year. The annual event is intended for members of the industry and provides opportunities for review of the latest automotive-related products and services.
Sonic Automotive, Inc. has announced that it intends to commence a private offering of up to $210 million in aggregate principal amount of senior subordinated notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and in offshore transactions pursuant to Regulation S under the Securities Act.
The net proceeds of this offering will be used to redeem a portion of the Company's 8 5/8 percent Senior Subordinated Notes due 2013.
The notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, North Carolina, is the nation's third-largest automotive retailer, operating 145 franchises.
The Collision Repair Executive Webcast (CREW) will welcome Doug Kelly, President of CynCast, to discuss CynCast’s rollout of a single value collision repairer scorecard, called Shop Performance Value Rating (SPV Rating) on its Thursday, March 25, 2010 webcast at 11:00 a.m. Pacific Standard Time.
Kelly will be joined by Eddie Cheskis, CSO, Gerber Collision and Glass, and Scott Wendel, APD Manager, Amica, both of whom are among a distinguished group of collision industry professionals who served on the SPV(TM) Rating Steering Committee.
The concept behind the SPV Rating program is to provide a simple single value blending different key performance indicator (KPI) values. The program, which has been in development and testing for more than a year, is comprised of the following key metrics: severity, cycle time, estimate accuracy, CSI net promoter, I CAR status, and usage of a recognized management system that assures increased data accuracy. The standard SPV Rating measures a repair shop’s performance against the overall market average performance in the metropolitan statistical area in which they compete.
CREW is designed to provide collision repair service providers, property and casualty insurance personnel, and automobile physical damage industry suppliers, partners and constituents with high-level, current information about the rapidly changing industry.
Each webcast includes topical, high-level industry information, as well as a special guest presenter. The delivery format is a web-based visual presentation of the content, a simultaneous audio conference call and the capability for participants to question the presenters. Erick Bickett of Fix Auto, Matthew Ohrnstein, of Symphony Advisors, and Vincent Romans, of The Romans Group, produce and present the semi-monthly, one-hour Webcast meeting.
There are a limited number of spots available. Reservations are required. If you are interested in joining the next CREW webcast contact Liz Stein at (714) 279-2027 or via e-mail at crew@fixauto.com.
The Automotive Management Institute (AMI) is accepting applications for the Richard Cossette/Gale Westerlund Memorial Scholarship. The scholarship, offered in conjunction with the Automotive Service Association (ASA), honors the contributions these individuals made to AMI, ASA, and the collision repair industry.
The scholarship recipient will receive $1,000 toward the recipient’s expenses to attend the 2010 International Autobody Congress & Expo-sition (NACE) in Las Vegas, October 10-13. NACE, the world’s largest collision repair event, is sponsored by ASA, and offers a comprehensive lineup of AMI, industry, and technical seminars, a trade show, and the opportunity to network with other automotive service professionals.
To be eligible for the award, the following requirements must be met:
- Applicants must work in the collision repair industry
- Must demonstrate an interest in self-improvement through management education
- Must own or work for a business that is an ASA Collision Division member in good standing
- If the applicant is not the business owner, must be recommended by the business owner.
AMI Trustees and their employees, and the Scholarship Selection Committee and their employees are not eligible to apply.
Richard Cossette owned Lehman’s Garage in Minneapolis, Minnesota. He was a charter founder of AMI and a $50,000 Charter Counselor contributor to AMI’s EXCEL program. He was the first chairman of EXCEL and was the recipient of AMI’s Annual Recognition Award in 1994. He was awarded an honorary Accredited Automotive Man-ager (AAM) designation in 1997 to further recognize his commitment and dedication to AMI. He also held numerous leadership positions on the ASA board of directors and was active in several industry organizations until his death in 2002.
Gale Westerlund owned Gale’s Auto Center in Blaine, Minnesota, and was a $25,000 Guarantor contributor to EXCEL. He earned the Institute’s AAM designation in 1993, and also served on the ASA board of directors for many years. He was an active member of ASA and other collision industry organizations until his death in 2005.
To request a scholarship application, call AMI at (800) 272-7467, ext. 241, or fill out a scholarship application online at www.amionline.org. Applications must be received by AMI on or before Aug. 13, 2010. The scholarship recipients will be notified by AMI on or before Sept. 13, 2010.
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 189,000 enrollments throughout North America.
The Coordinating Committee For Automotive Repair (CCAR) has announced that Pohanka Collision Center of Chantilly, Virginia, is the first automotive repair facility in the nation to be recognized as a “GreenLink Shop.”
The GreenLink Shop status, an extension of CCAR’s CCAR-GreenLink(R) Environmental Compliance Assistance Center and S/P2 (Safety and Pollution Prevention) E-learning Program, is designed to promote consumer confidence in local automotive repair facilities’ environmental and safety awareness, and stewardship.
“It is an honor for Pohanka Collision Center to be recognized as the first in the nation to achieve GreenLink Shop status,” said Mike Moore, General Manager. “Pohanka Collision Centers are committed to exceeding our consumer and employee expectations in environmental, health, and safety operations as part of our ‘Do It Right the First Time’ philosophy.”
“We congratulate the team at Pohanka Collision Center of Chantilly on approval as the first GreenLink Shop Program recipient,” noted Daren Fristoe, CCAR President and Chief Operating Officer. “With this achievement, Pohanka further solidifies its reputation as an industry leader in environmental and safety awareness and raises the bar for the marketplace. Such high levels of commitment and dedication to consistent and compliant performance are to be commended.”
Repair facilities seeking the GreenLink Shop recognition must maintain high standards of excellence in environmental, health, and safety (EHS) practices in four categories: business operations, employee training, safety compliance, and environmental management. The CCAR initiative recognizes both auto mechanical service facilities and collision repair shops, with separate criteria established for each type of business.
For more information on the CCAR GreenLink Shop program, go to www.ccar-greenlink.org/gls or call toll-free to1-888-476-5465.
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San Ramon Body and Detail Shop, located in San Ramon, California, and its owner, Geoff Johnson, have received the first ever Green Business Award from the San Ramon Chamber of Commerce. The award recognizes a business that has developed initiatives that save energy, reduce waste, and improve the environment.
At the chamber awards luncheon, Johnson and his shop were also recognized by the Mayor of the City of San Ramon, the chairman of the San Ramon Economic Development Advisory Committee, and the offices of State of California Assembly persons Jerry McNerney and Joan Buchanon.
Johnson, who has been in business for 30 years, was honored and surprised to be recognized. “We started recycling the paint and water in our shops about ten years ago and have expanded our efforts since then,” he said. “We are always looking for ways to minimize the waste stream so it was a shock to win an award for something we do as a regular part of our business.”
The shop’s first foray into recycling started with its use of solvent-based automotive paints.
“We bought equipment to separate the solvents from the paint,” Johnson said. “The result was solvents we could reuse and solid pucks of hardened paint that could be disposed of in a landfill.”
The detailing part of the business necessitated recycling water as the body shop does with the paint. The shop has a system that recycles the water to almost drinkable condition which can then be put safely into the storm sewer.
The shop has also reduced water usage by installing restrictive flow nozzles at each water faucet and trigger controls at its hose line outlets. By doing this, the shop has reduced water usage to “on demand” only with the hoses and from two gallons to one-half gallon per minute at all inner building faucets.
“The result is at least 60 percent less overall water consumption,” noted Johnson.
To be on the cutting edge of the latest technology, last year the San Ramon Body Shop converted to the more environmentally friendly waterborne paint.
“With the help of our supplier FinishMaster and its WaterMasters division, we were one of the first body shops in the area to adopt waterborne,” said Johnson. “The PPG Envirobase waterborne paint we use is a much healthier for our customers and our technicians plus it has excellent color match and good resilience.”
Johnson’s latest initiative has less to do with automobiles and more to do with energy. He has changed all of the light fixtures in his 20,000 sq. ft. building to T8 fluorescent bulbs. “By using these low energy lighting fixtures, we have cut our energy costs by 50 percent while doubling our light output,” he said.
Johnson’s green efforts are trickling down to his staff. “Even our employees are doing their part,” said Johnson. “Everyone puts their cans and plastic bottles in the recycle bin that we provide. Doing even a little bit can really make a big impact.”
Following up on the February 1st announcement that CAPA is developing a new bumper certification standard, Jack Gillis, CAPA Executive Director, announced that CAPA is in the dynamic testing phase of the new CAPA standard. The CAPA Bumper Systems Standard will cover steel bumpers (front and rear), steel reinforcements (rebars), bumper brackets, and absorbers. The CAPA program is a direct response to the need for independent certification and testing as a mechanism for fostering market competition.
“We are pleased to respond to the cross-industry demand for CAPA certification. The bottom line is that insurers, repairers, and part distributors cannot simply look at competitive parts and make an informed decision on the true comparability of that part to a car company brand part,” said Gillis.
To ensure comparability, the car company service part undergoes a comprehensive testing regimen with the results becoming the standard to which the aftermarket part is compared. The aftermarket part undergoes the same comprehensive testing regimen. If the test results show the aftermarket part is comparable to the car company brand part, it can bear the CAPA Quality Seal.
“The CAPA Quality Seal is crucial because as the various tests results being released demonstrate, it is impossible to determine if an aftermarket part will perform comparably to a car company brand part, unless all critical aspects of the part have been tested and reviewed,” said Gillis.
After the dynamic bumper testing process has been completed, the proposed standard will be presented to CAPA’s Technical Committee for review and approval.
PPG has named Auto Color Supply, of Murfreesboro, Tennessee as its 2009 Platinum Distributor of the Year. The award was presented to Auto Color Supply owner Pat Anderton at the annual Platinum Conference held in mid-February at the Green Valley Ranch Resort in Henderson, Nevada.
“I never expected this,” said Anderton. “I was very excited and completely dumbfounded, speechless. I didn’t know what to say. It’s a real honor to receive this from PPG, and it’s something that everyone at our stores had a hand in.”
The award was presented by Bob Wenzinger, director of the PPG Platinum Program.
“Auto Color Supply has demonstrated consistent sales growth and participated in the Platinum Program’s training and business development offerings. That’s something Pat and his team has done very well,” said Wenzinger. “They especially performed well in a very difficult year. Auto Color Supply is an exceptional representative of PPG products and has the technical and industry knowledge to earn the trust and confidence of their customers. They truly deserve this award.”
Anderton bought Auto Color Supply in Murfreesboro from his sister and brother-in-law in 1983. Since then, he has expanded operations and opened stores in Shelbyville and Columbia, TN. His team of 12 employees sells a full line of PPG products. Anderton became a PPG Platinum Distributor in 2005.
The PPG Platinum Program began in 1995 as a loyalty and support initiative for PPG single-line distributors with the ultimate goal of providing exceptional service and benefits for PPG Refinish customers. The program delivers competitive advantages to its participants by aligning the technology, training and customer support of PPG with the entrepreneurship, customer awareness, local market knowledge and service capability of the independent distributor.
The National Auto Body Council (NABC) has received an Award of Excellence in the first round of the 2010 Associations Advance America (AAA) Awards program, a national competition sponsored by the American Society of Association Executives (ASAE) and the Center for Association Leadership, based in Washington, D.C. The NABC is one of only thirteen organizations nationally to have the award bestowed upon it.
NABC specifically received the award for its Recycled Rides(TM) initiative, a community awareness project whereby members of the NABC repair and donate refurbished vehicles to families and service organizations in need throughout the United States. The program is now in the running to receive a Summit Award, ASAE and the Center?s top recognition for association programs, to be presented in ceremonies at ASAE?s 11th Annual Summit Awards Dinner at the National Building Museum in Washington, D.C., on September 29, 2010.
Now in its 20th year, the AAA Awards program recognizes associations that propel America forward with innovative projects in education, skills training, standards?setting, business and social innovation, knowledge creation, citizenship, and community service. Although association activities have a powerful impact on everyday life, they often go unnoticed by the general public. The award is an attempt to correct that oversight.
“When I got the application, it looked like the organizations wanted to gather input on association programs that were different and unique and had an impact outside of their own membership,” recalled NABC Executive Director Chuck Sulkala. “I immediately thought of Recycled Rides, because it is an awesome example of how all segments of our industry join together to help folks and organizations who are in dire need. Its reach is quite extensive, and its green aspects are notable, as well. We’re renewing donated goods and services, bringing an otherwise total loss back to significant life and usefulness. It’s one of the most outstanding forms of ‘service to humanity’ I have ever witnessed.”
From the perspective of ASAE and the Center, Recycled Rides truly embodies the spirit of the Associations Advance America campaign.
“It is an honor and an inspiration to showcase this activity,” stated 2009/2010 Associations Advance America (AAA) Committee Chair Ping Wei, Director of Educational Opportunities for the American Society of Civil Engineers. “It is an example of the many contributions associations are making to advance American society.”
NABC is a non-profit organization dedicated to enhancing the image of the Collision Repair Industry. The organization’s ongoing and continued success is a direct result of the efforts and support of its sponsoring companies and membership.
The Travelers Companies, Inc. has made a $500,000 grant to support The Hole in the Wall Gang Camp, a nonprofit, residential summer camp and year-round center serving children suffering from cancer and other serious illnesses. The grant will expand the Camp’s hospital outreach program, bringing the activities of the Camp to children in hospitals from New York to Boston.
"Travelers is a company that understands the importance of supporting families undergoing the tremendous challenges that come with having a seriously ill child,” said Jimmy Canton, CEO, The Hole in the Wall Gang Camp. “This grant will enable us to bring the talented counselors and specialists from The Hole in the Wall Gang Camp Hospital Outreach Program right to the bedsides of more seriously ill children in hospitals. Both through its corporate support and the Travelers Championship, Travelers has helped us to grow our programs for the children in greatest need. We simply could not do all that we do without Travelers."
The Hole in the Wall Gang Camp’s Hospital Outreach Specialists work collaboratively with hospital staff to implement programs focused on improving children’s quality of life during treatment. Daily activities are tailored to the hospital setting. The specialists also provide various support services to the children’s families. Consistent with the Camp’s other activities, the program is available to hospitals and families at no cost.
“The Camp is a magical place for the children who attend,” said Andy Bessette, Travelers Executive Vice President and Chief Administrative Officer. “Travelers is pleased to support the Hospital Outreach Program and its efforts to bring some of that magic to children too ill to leave the hospital.”
Travelers became associated with The Hole in the Wall Gang Camp through its role as the title sponsor of the Travelers Championship, Connecticut’s annual PGA TOUR golf tournament. The Camp is one of the tournament’s designated charities, and since 2007 the tournament has contributed more than $780,000 to the Camp. Travelers also supports the Camp directly, having contributed more than $300,000 since 2008. Travelers employees also support the Camp through Birdies for Charity, a program that encourages donations for every birdie made during the Travelers Championship.
The support of The Hole in the Wall Gang Camp is just one example of Travelers’ commitment to the communities in which it does business. Over the last five years the company has provided more than $85 million in community support and its employees have contributed tens of thousands of volunteer hours. Travelers focuses a significant portion of its charitable giving on public education reform and improving academic and career success for underrepresented youth. The remainder of the company’s charitable giving supports targeted local needs in the areas of community development and the arts.
Founded in 1988 by Paul Newman, the Hole in the Wall Gang Camp is a nonprofit, residential summer camp and year-round center serving children and their families coping with cancer and other serious illnesses and conditions. Each year, camp programs provide services to more than 15,000 youngsters. All of the camp’s services are provided free of charge.
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