Posts Tagged state govt.
As 2013 comes to a close I thought I’d take a quick look back at a blog I wrote in September titled “Wind at Our Backs?” I suggested that “it appears that we may have some wind at our back.” The wind was related to the three key drivers of the automotive glass repair and replacement (AGRR) industry: weather, the economy and miles driven.
The Weather – I wrote that The Old Farmer’s Almanac has a pretty good record at forecasting winter weather. For the 2013 – 2014 winter season, the magazine forecasted that we would be experiencing colder weather and snowfall in many sections of the country. When you take a look at the past month the forecast seems to be a good one. I live in Chicago we’ve seen January and February cold in December already. And we’ve had snow too. If you believe that cold, ice and snow are good for the AGRR industry and you live in markets that experience them, the start of winter in many areas has been good. The map below shows the snow cover in the United States as of today.
Let’s keep hoping for cold, ice and snow for the rest of winter 2013-2014.
The Economy – Economic news continues to be positive with the United States Department of Labor – Employment Situation Summary reported that unemployment rate declined in November to 7.0% from October’s 7.3%. The major U.S. Indexes have soared to new highs the past month, but as someone I know always says “so far things are going well today, but it’s early”.
The Los Angeles Times reported in an article this week titled “U.S. economic recovery is expected to gain strength in 2014” stated, “The nation’s economic outlook has vastly improved in recent weeks with signs of stronger job growth, bigger gains in personal incomes and an improving housing market.” The article pointed out that the economic outlook for the country has improved sharply and that consumer buying is influencing businesses to hire which means that confidence in the both the long and short-term economy.
The positive economic outlook is reported at a national level but what really matters is how are things going in the market or markets you compete. I hope things are going well in the markets in which you compete.
Miles driven - On a trailing twelve months ending September 2013 the U.S. Department of Transportation–Federal Highway Administration (FHA) reports that travel overall was up 1.5% or 3.7 billion vehicle miles versus September 2012. For all of 2013 versus 2012 miles driven is up 0.4%. The only area of the country not reporting an increase year-on-year was the West with a 0.2% drop. The South-Atlantic and the South-Gulf regions both reported a 2.4% increase, along with a 2.0% increase in the North-Central and the North-East a 1.0% increase. Overall miles have increased 9.8 billion miles driven so far in 2013. The September 2013 Travel Monitoring and Traffic Volume report was good news for the AGRR industry.
An improving economy is helping to fuel this increase in miles driven, but so is the drop in the cost of oil. The graph below shows the rise and fall of gasoline prices during 2013 and as you can see prices are trending lower.
Lower gasoline prices are obviously positive for your business and its helping to increase miles driven by consumers. Let’s hope that 2014 continues this trend.
As reported in an article titled “U.S. roads, bridges are decaying despite stimulus influx” that appeared in the USA Today earlier this year, “Indeed, just 38% of the pavement on roads stretching miles across the USA is in “good” condition…” Bad roads are good for the AGRR industry and as the article points out, “The cumulative cost of these tattered roads isn’t just about dollars and cents. Though poor pavement conditions do cost consumers billions annually in vehicle repair…” With government budgets tight both at a national and state level we’re probably not going to be seeing much money spent on fixing roads and the money that is spent will probably be short-term.
The three key drivers appear positive at the moment. You can probably argue that there are other key drivers in your business today such as the competitors you face in a market. As I’ve mentioned before I believe that you are the key driver in your business. You and the people you surround yourself. Taking advantage of opportunities in the marketplace the best you can as they come up will make the difference in how 2014 starts for you in your business. In talking with a number of people I know in the industry 2013 and the past few years have been tough.
With the three key drivers turning positive as we close 2013 and if you agree that the wind is at your back, what are you going to do in the next year to make your business stand out and drive success?
I hope that you have a Happy Holiday and that the New Year will most definitely be a very good year.
Two of the most respected people in the auto glass repair and replacement (AGRR) industry are Dave Taylor and Cindy Rowe-Taylor who together built Cindy Rowe Auto Glass into the dominant AGRR company in much of Pennsylvania and Maryland. They retired to Florida a few years ago and spend much of their time cycling the world and enjoying their lives.
At Auto Glass Week™ 2013 that was held in Tampa, Florida last month Rich Campfield, president of the National Windshield Repair Association (NWRA), presented Dave Taylor with a new industry award named in his honor. As a founding member of the NWRA, Dave was a force in helping to mold the organization. Cindy was in the audience during the opening ceremony where Dave was presented with the inaugural award.
While at the Auto Glass Week™ Conference I had the chance to talk with both Dave and Cindy and they agreed to an interview.
DR First, thanks to you Cindy and Dave for taking the time to talk with me today. Special congratulations to you Dave for receiving the NWRA award that was named in your honor. I can’t think of anyone more deserving to be recognized for the work you have done to bring windshield repairs to consumers.
My first question is how do you both like retirement versus the daily challenge of being in the AGRR business?
DT Retirement is terrific. As many folks know, we are avid bicyclists and living in The Villages in Florida is a bicyclists dream come true. We would have retired sooner if we had known had much fun and satisfaction retirement life had to offer.
CR-T Retirement has been an easy transition and so enjoyable. It is not sitting on the couch eating bon-bons, but having a very busy schedule and having such fun being busy.
DR It sounds like you’re both making the most out of retirement. Cindy, what year was it and what was it that drew you to the AGRR industry that caused you to open the first Cindy Rowe Auto Glass store?
CR-T I was a registered nurse for 13 years and decided I wanted to be my own boss. That was when I became aware of the windshield repair (WSR) possibility in my area. In 1979 I started out with my repair kit in the trunk of my Vega, seeing dealers and fleets, where the volume was. No sales experience ever. I loved it from the start. I am the WSR pioneer in the Harrisburg, PA, and surrounding areas. Dave joined me in 1986, working mobile WSR for one year; it was after that year that we bought our first glass shop. We kept on both technicians and learned about replacement.
DR Dave, what was it that you found attractive (besides Cindy) to the industry?
DT Self employment is the short answer. After a 25 year career in department store retailing I wanted to be independent of the corporate world. Joining Cindy’s business was the logical next step. Being able to work together added icing to the cake.
DR What was it Dave that made you such an early and strong supporter of repairs versus replacements?
DT Cindy founded the business as a windshield repair-only business before we had even met. Eventually we expanded from repair to full service. Unfortunately for the consumer, and perhaps fortunately for us, 25 years ago most glass companies were focused on replacement. They probably felt it was best for their glass company. Solid business management practices made repair profitable for us and a well executed repair program gave us a significant and profitable competitive advantage. Providing customers with their best solution to an auto glass problem, be it repair or replacement, was our primary business strategy.
DR This question is for both of you. What can you tell the readers of this blog made the biggest difference in the growth and sustainability of Cindy Rowe Auto Glass over the years?
CR-T Staying ahead of the industry with their many changes, starting with the early 90’s and on. Customer service was not to be compromised and keeping valued employees. Early on, Dave and I decided that advertising heavily and educating the public would do well.
DT Consistently providing the best quality service to customers and aggressive brand building through media and public relations.
DR I know that in my own career finding the right mix of people made all the difference in my finding success that I’ve enjoyed. At Cindy Rowe how were you both able to always ensure that you surrounded yourself with the best people, that you got the best from them and what advice can you offer those in business today as to that importance?
DT Choose wisely, treat kindly.
CR-T Fairly early on, we decided to hire people “green” and train them, offer good benefits, keep them abreast of the industry and give some autonomy.
DR At Cindy Rowe you provided consumers in the Pennsylvania and Maryland markets you served with AGRR services, but you also offered paint-less dent repair. Would you suggest paint-less dent repair (PDR) as an additional product line that for those in business looking for additional revenue streams? And if not paint-less dent repair are there other products you think work well in today’s AGRR business?
DT PDR is a profitable but technically challenging service. While it worked for us, it has proved difficult for many AGR companies to integrate into their businesses. I like what I saw during Auto Glass Week’s joint event with the window film industry. We would have given window film a thorough evaluation.
DR Something that some may not have known about you Cindy is that you are a registered nurse and that you’ve donated your time and expertise to those in need while in business at Cindy Rowe Auto Glass and still to this day being retired in Florida. Were you a registered nurse when you first started Cindy Rowe Auto Glass?
CR-T Yes, for 13 years. In 2002 I took the “Refresher Course” for RN’s and have been volunteering since in an area where uninsured patients are treated. It is gratifying to be able to give back in some capacity.
DR What traits or experiences in your background Cindy gave you the ability to find such success in business?
CR-T I would guess perseverance, honesty, not afraid of working extra (lots of that for years), organization and time management skills.
DR Here is a question for you both. Using radio and/or television advertising was a way that you got your name out into the marketplace and helped establish and differentiate Cindy Rowe Auto Glass. It is expensive to advertise on radio and television. When you look back at the genesis of Cindy Rowe through the day you departed the business, what was it that caused you to make that decision to spend money on that form of advertising?
DT When we expanded from being a car dealer driven windshield repair only business to full service auto glass, we were the new kids on an already crowded block. Capturing the customer through the traditional referral routes would have taken a decade or more. So we went directly to the customer with Radio/TV and created an awareness and demand for our brand. When TPA’s began to capture significant market share, our brand building paid off handsomely. We were the only AGR company anyone in our markets had ever heard of and they asked for us. We never anticipated TPA’s when we began our brand building but brand building saved our skin when TPA’s took over most of the insurance business.
Radio/TV and now internet are the effective media tools to build your brand with the general public. To influence “choice” at TPAs we wanted to be top-of-the-mind before the customer calls the TPA. Branding is a prerequisite to being “chosen”. While media is expensive, aggressive purchasing strategies can help control the costs.
DR Here’s a non-industry question. You mentioned that you are avid cyclers. Can you tell me what countries you’ve cycled and as a follow-up what you’ve learned about yourselves in your cycling adventures?
CR-T Cycling helps keep one in good physical condition and it really is a focus issue while on the bike – lots of issues to watch out; cannot daydream.
DT United States, Canada, Bermuda, Denmark, Germany, Austria, Italy, France, Luxembourg, Slovenia, Hungary, Lichtenstein, South Africa and Switzerland.
DR One thing I’ve noticed is that you both smile quite a bit. Can you say you’re both happier now that you’ve left the industry? What is it you miss being in business?
DT Happier? YES! What I miss about the business is the daily challenge to effectively manage the unending stream of issues. In retirement I can choose easier and less stressful challenges.
CR-T I look at it as another chapter in life. I have always loved my work, but times change and I am now thoroughly enjoying retirement with Dave. One of the things I missed when we first left was seeing the people in the office. My people spoiled me and it did not go unnoticed by me!
DR My thanks to you both for taking the time to answer my all of my questions.
For those of you who haven’t had the opportunity to meet Dave and Cindy I can tell you from personal experience with them that they are good people. Truly fine people; who have effected and changed the lives of those that have come into contact with them over the years. Whether that interaction was in the business they operated together, the AGRR industry they both left their mark on or in their active community service over the years, both Cindy and Dave have given their time to those who sought them out or they felt needed their help.
The industry has been made better by their being a part of it and I hope that they continue to be active in helping to improve it in the future.
A couple of months ago I was looking at a web site TED.com. TED.com is operated by a non-profit group dedicated to bringing together leaders from technology, entertainment and design who are given the challenge to give “the talks of their lives” in 18 minutes or less at TED Conferences. If you visit the web site you’ll find a number of very interesting people talking about a wide variety of topics and most of them are passionate discussions of topics that are very important to each speaker. The organization also has events called TEDx (the x means an independently organized TED event) which brings the lofty goals of the international organization to locales across the United States and world to stimulate discussion on topics that have special meaning to the community. Through this site I found a T. Boone Pickens talk which he gave at his alma mater Oklahoma State University on December 3, 2012. The topic was what he called The Leadership Plan. In a 16 minute talk that was both humorous and serious, he laid out what he called his 10 Big Rules which really resonated with me. To me, these rules seem more like principles, but Mr. Pickens rules are pretty straightforward and are ones that anyone can and should follow. His 10 Big Rules:
1. Have a good work ethic
2. Make a plan
3. Look for big things
4. Take advice from smart people
5. Make your case in 3 minutes or less
6. Don’t be afraid to make a decision
7. Embrace change
8. Don’t cheat
9. Have patience
10. Be generous
In the case of T. Boone Pickens these were the rules that he started following while attending Oklahoma State University after a little prodding from his father. The fact that he figured out these rules at such a young age brought him the opportunity to have a wealth of experiences and at a young age monetary wealth as well. His first rule is that, regardless of your position in life, having a good work ethic is a key to having success. No one can disagree with that one. Mr. Pickens second rule is to make a plan. If you make a plan it will provide you a clear direction to head in achieving the goals you set for yourself. This rule should also give you a way to clearly measure how you’re working toward achieving your plan. When you look for big things you find will find ways to differentiate yourself from others and this should help you in finding success in anything you pursue.
Mr. Pickens fourth rule certainly has meaning to me – take advice from smart people. You can’t know everything so finding people who can help you achieve your plan is critical to finding success. I’ve always tried to surround myself with smart people who bring knowledge and experiences I don’t have. The next rule is that you need to be able to make your case in 3 minutes or less. This really speaks to having a clear understanding of your goals along with the key ingredients that will provide you with a recipe for success that you can easily communicate. Why is this important? In order to get those you want to join you in pursuit of your plan, you need to be able to persuade or influence them so being able to make your case will be critical to your success. Once you’ve got your team on board with your plan you also need to be able to clearly communicate to those who will be buying the product or service you’re offering. Rule five make your case in 3 minutes or less makes a lot of sense.
As a leader don’t be afraid to make a decision. You can get bogged down in the decision making process, but don’t. You obviously always try to make the best decisions you possibly can by analyzing all pertinent information and determining the best course of action. Then ou then deal with the consequences of the action that you take. Be fearless.
You also have to be able to embrace change. With Mr. Pickens’ rule number seven he’s telling us that everything around us is in constant change and you must willing to accept change if you want to find success in business. If you’re not open to trying new ways of doing things you are not going to be successful. You can’t fear change and you have to surround yourself with people who embrace change just as much as you do. Mr. Pickens says be a change advocate and that’s truly great advice.
His eighth rule – don’t cheat – doesn’t really need any explanation, but no success can truly be enjoyed if you cheat to achieve it. I’m sure you know people or companies who you feel have cheated and achieved success by doing so. It is certainly frustrating to watch others cheat and get away with it, but if you really want to be a leader Mr. Pickens advice is just don’t do it.
The ninth big rule is one of the most important rules. As a leader you have to have patience. You need to show patience with the people that work for you and you have to be patient as you put your plan into action. If you have faith in the direction you’re going you have to give your plan time to work. Mr. Pickens tells a story of a friend who told him, “Don’t rush the monkey and you’ll get a better show.” Be patient.
T. Boone Pickens tenth big rule of leadership is that you should always be generous with your time and treasure. His grandmother told him, “Don’t forget where you came from.”
The 10 Big Rules that Mr. Pickens detailed in his 16 minute talk are really great rules for anyone to follow in life or business. As I mentioned earlier, when I watched his talk at the Oklahoma State University Mr. Pickens 10 Big Rules really resonated with me. I’d like to think that I have followed his rules in my business career, but the only way to know for sure would be to ask those with whom I have had the privilege to have worked.
What do you think people would say about you if asked?