May 1999 Editor's Page
Sorry, Just a Little More on the Non-OE Parts Fiasco...

I'm happy to report this issue's editorial content is 100 percent non-OE parts FREE. Well, except for this quick comment:

I spoke with Jack Gillis in April just prior to the CIC meeting in Denver, CO. While he took exception to my comments, published in this space last month, that people were calling for him to step down, he expressed a desire to work with the industry and repair any damage that has been done to the relationship between CAPA and the repair industry. Expect an article from Gillis, focused on solutions to the non-OE parts fiasco, in an upcoming issue of INSIGHT.

The non-OE parts saga got some floor time at CIC, and will continue to do so, with attendees voting to continue the non-OE versus OE parts fit demonstrations. While many have questions concerning the validity of these tests, they have served a useful purpose by focusing attention on the daily problems repairers experience with both non-OE and OE parts.

On to other news…

Business levels, as evidenced by our monthly TrendLine survey that appears on page 8 of this issue, proved robust in March. All of the regions reported increased business levels, most likely due to winter storms that hit much of the country. The Midwest, in particular, showed a dramatic increase of over 22 percent versus March of 1998.

For comments on the TrendLine survey, see the accompanying article on page 9.

Finally, our feature article this month delves into measuring key collision repair facility performance indicators. I urge our repair facility readers to take a look at these numbers in their own facility in preparation for next month's examination of the parts to labor ratio's impact on overall shop profitability.

Since joining INSIGHT six years ago this month, I've made it a point to hit on the subject of the parts to labor ratio at least once a year. Unfortunately, as a recent conversation I had with a close and learned friend in the industry pointed out, many still do not appreciate the impact of measuring gross profit per clock hour versus the static gross profit margin analysis on a repair order basis.