Archive for category Economy
Posted by "Just Sayin'..." in aftermarket, AGRR, aumotive after-market, Auto Glass, Auto Glass Networks, Autoglass, Business, cars, Collision Repair Industry, Covid19, customer, Disruption, Disruptive Innovation, Economy, Federal Reserve, Fortune 500, General, ideas, Innovation, Inspire, Leadership, No Bad Ideas, recipe for success, Retail, Service, state government, Success, U.S., U.S. Govt., Uncategorized, VGRR on May 15, 2020
The coronavirus is possibly the most significant disruptor to companies in the automotive aftermarket repair industries that you’ll experience in your lifetime. It’s solely up to you and your business associates to navigate the turmoil it has caused. How your business survives this black swan event will be determined by how well you can develop new strategies that will benefit your company.
It’s interesting to see how some market leaders in automotive aftermarket repair segments have completely pulled budgeted advertising spend in the face of an 18.6% decrease in miles driven in March 2020 versus March 2019, as reported by the U.S. Department of Transportation – Federal Highway Administration.
During business downturns, historically, companies that continue to keep their marketing and sales strategies in play often capture market share from companies that dramatically reduce spending in those areas. Marketing, advertising, and sales costs are often the easiest to slow or stop completely and then restart.
If you’ve been unable to match the typical spend of the market leader you compete against during good times, that doesn’t mean that you can’t make an impact with potential customers and be known as someone who stepped up long after the market leader restarts marketing spend for attention.
Don’t sit back and wait for your company to recover from the coronavirus downturn; make sure that you, your company, and your personnel are participating in activities that help your community weather this storm. Be sure that you’re seen in the community as someone willing to step up and help others in need. That could be volunteering time and work in the market you serve, offering to deliver meals to healthcare workers, first responders, charities, or offer special discounts for healthcare workers who use your services.
Now is not the time to wait and see what happens. Now is the time to be seen as someone in your city that everyone can count on in difficult times. If you do that, not only will it make you feel good, but it should provide your business with the benefit of new opportunities when we return to normal.
Photo by Edwin Hooper on Unsplash
Posted by "Just Sayin'..." in aftermarket, AGRR, aumotive after-market, Auto Glass, Autoglass, Batteries, Battery, Business, cars, Collision Repair Industry, customer, Disruption, Disruptive Innovation, Economy, Fleets, General, Innovation, Leadership, rental cars, Retail, Service, state government, Success, supplier, Technology, Tools, U.S., U.S. Govt., Uncategorized, USP on September 12, 2019
If you read the recent “Farmers’ Almanac’s Extended Forecast 2020” article on the outlook for the coming Winter in North America you’d have seen that it’s predicted to be what the self-proclaimed provider of “perception, experience, and common sense” is calling a “Polar Coaster”. Their forecast for this Winter anticipates that we will experience bitter cold from the Rockies to the Appalachians. A forecast likes this tends to be great news for the retail automotive aftermarket as weather extremes are a key driver whether you’re in the Emergency Roadside Service (ERS) industry or the auto glass repair and replacement (AGRR) industry.
For 201 years the Farmers’ Almanac has been providing seasonal weather predictions and this Winter the worst areas for cold and snow include the Northern Plains, Great Lakes Region all the way to the Northeast. The prediction indicates that the worst weather could take place from late January through early February.
Winter weather often brings feast or famine to the automotive aftermarket depending on whether it’s a colder or warmer season. It doesn’t matter whether you’re a manufacturer of products used by the automotive industry’s that operate in the aftermarket, a company distributing replacement parts into markets across North America or a retailer providing services to the end user, the spikes in opportunities that cold weather extremes bring includes probable logistical and supply issues. Potential issues that extreme cold, ice and snow brings can include keeping plants open and fulfilling increased parts orders, keeping delivery vehicles on the road getting those products to the retailers who also have to deal with scheduling repairs that come along with the increased opportunities.
With the current historically low unemployment rates that we’re seeing across North America an extreme Winter also will bring additional stress due to difficulties finding those qualified to manufacture, distribute and provide repairs that consumers and businesses alike will require. Currently there are numerous examples of difficulty finding and keeping qualified technicians in both the AGRR and ERS industry’s. In the AGRR industry a glass repair or replacement can often be deferred for some period of time, but weather extremes effect on automotive batteries will drive volume spikes in jump starts and replacement opportunities putting strains on companies that provide services in the ERS space.
So if the Farmers’ Almanac prediction turns out to be accurate for Winter 2019 – 2020, has your company planned and prepared its best so that you can take care of your customers parts and service needs? Those who have done the best job planning before any extreme cold, ice and snow appears will be the ones able to capitalize on the opportunities that are available.
* Photo by Vel Vesa on Unsplash
You may or have seen this short YouTube video (link below) titled:
It is a great example of mentoring and leadership. The video shows a series of vignettes highlighting interactions between National Basketball Association (NBA) Head Coach Steve Kerr of the Golden State Warriors (also a former NBA player) and his remarkable NBA superstar player Steph Curry. The interactions between this great coach and player are amazing to watch.
There isn’t much you can add to the power of Steve Kerr’s words of encouragement to his superstar guard. You could argue that Steph Curry was destined for an amazing career in the NBA based on his natural talents and the very hard work he has put into ensuring that he is able to give his best every game, but Coach Kerr should be given credit for helping him achieve even more.
If you provide similar positive reinforcement like Steve Kerr with the people that work for you, imagine how great a company you will have. Of course, the reality is that not all managers or company owners are good mentors or leaders. Nor are all employees’ top performers. That doesn’t mean that you can’t spend time encouraging everyone to get the best that you can out of those that report to you or work for your company.
I’ve worked for good and bad bosses. I’m sure you have as well. The best one for me was unquestionably John Mason, the President and Chief Executive Officer at Belron from 1989 – 2000. The good ones tend to delegate authority ruthlessly with confidence. The bad ones? Well, Geoffrey James, a Contributing Editor for Inc. Magazine and Inc.com wrote a great article titled “5 Traits of a Micromanager (and How to Fix Them)”. Mr. James writes that those five traits are:
- Measuring too many things.
- Monitoring too closely.
- Building too much consensus.
- Intervening too much.
- Setting too many priorities.
Hopefully those aren’t traits you possess if you’re a boss, but perhaps you recognize them as traits in your boss?
So, if you’re a leader and mentor I would strive to be like Steve Kerr. He has the qualities I would want to have.
Posted by "Just Sayin'..." in aftermarket, AGRR, aumotive after-market, Auto Glass Safety Council, Autoglass, Batteries, Battery, Big Data, Business, Credibility, customer, Data, Dedication, Disruption, Disruptive Innovation, Economy, General, Innovation, Inspire, Leadership, New Year, Retail, Service, Success, supplier, Technology, U.S., U.S. Govt., Uncategorized, USP on December 31, 2017
Does your company provide customers with amazing reporting that presents them actionable or unique information derived from your analysis of their data? If you don’t you’re missing a great opportunity to highlight the value that your organization can bring by presenting data they either haven’t thought about or don’t access to help improve performance.
I received an email from Uber® that detailed my rides during the past year. Most of the information wasn’t actionable, but it was interesting. I learned that I traveled 285.25 miles via Uber® in 2017. I was labeled a “Weekday Warrior” suggesting that most of my rides took place between 6 a.m. – 10 a.m. and 4 p.m. – 6 p.m. on weekdays. Their take was I was using Uber® for rush hour, happy hour, heading to a morning meeting or a ride to the airport and they were right. I used Uber® in 11 different cities with the highest use in Boston. I don’t live in Boston, but they told me that most international air travel from Boston is to London. Who knew? I learned that I signed up for Uber® 1,396 days ago and my average rating of drivers was 4.82 out of 5. I guess I’ve been impressed with most of them.
Uber® also informed me that Los Angeles riders provide the highest satisfaction ratings for drivers across the World, Tampa uses Uber Eats® most often and that New York stands out as the city with the most late-night and weekend rides. Miami had the most mobile telephones that go MIA (pun intended) in an Uber®, the top tourist destination was The Eiffel Tower and Chinese is the most ordered food in the United States, Burritos in Asia and Europe, along with Tacos in Latin America via Uber Eats®.
Now I’m not sure that any of this information is meaningful or actionable for me, but when you provide your customers with unique information that you track which you believe is important and that could be useful to them in bettering their business you add value. Can you provide a unique perspective that shows the value that you bring? Adding value to your customer is a key component to finding success for your company. By differentiating your value proposition to your customers, you help separate your company from your competitors. So, if you’re not using data to provide your customers with information that can improve their business you’re missing out on a great opportunity to improve yours.
Here’s hoping your 2018 is a very successful one!!
D’Ieteren, the parent of auto glass repair and replacement (AGRR) behemoth Belron, offered some insight into the current state of affairs at Belron in a press release last Friday. Even the strong can have some problems. The title of the press release was, “Annual impairment testing and profitability improvement measures / Update on group’s FY 2014 outlook / Early views on 2015” You can download the release via this link. It provides some interesting insight.
When you read the details of the press release pay particular attention to the section titled ”IMPAIRMENT AND RESTRUCTURING CHARGES”. This section provides an in-depth discussion of the non-cash charges and actions that D’Ieteren is taking.
First of all the release states that “Since 2010, Belron has been facing adverse market conditions in the UK with the vehicle glass repair and replacement market down by circa 40% over the period (-12% in 2014) together with price deflation. This has led to an erosion in profitability during the period.”
“Belron entered the Chinese market in 2009 and expanded its network to 39 branches through a number of acquisitions, all of the businesses having both a wholesale glass and a fitting activity.”
“Experience to date has shown that Belron’s high business standards were not compatible with the carrying out of a profitable wholesale business in the region. Given the relative size of this activity in many of the existing branches, the discontinuation of the wholesale business means that these are no longer viable in the long term and will be either closed or sold. Following the closure of 31 non-profitable locations, Belron’s footprint in China will be concentrated on 8 branches.”
“This change will result in EUR 7 million unusual costs as well as a non-cash goodwill impairment charge of EUR 9 million, all provided for at year-end.”
“In Italy, following a decline in the vehicle glass repair and replacement market of circa 8% in 2014 and the decision of one of the major insurance partners to cease its collaboration and to establish its own network for fulfilling glass claims during the year, Belron has decided to implement a number of efficiency improvement measures. This will encompass merging the back offices of Carglass Italy and Doctor Glass, its franchise operation, as well as reducing administrative work in several branches thanks to the roll out of the new remote advisor system. The resulting EUR 4 million unusual costs will be fully provided for at the end of this year and will generate savings that should partially compensate for the reduction in sales.”
“In the Netherlands, vehicle glass repair and replacement market has halved in the last 5 years following the roll out of a new road surfacing technology that resulted in the vehicle glass breakage rate reverting to the European average while it was previously significantly higher. Profit improvement measures are currently being implemented both centrally and in the field operations that will require EUR 4 million unusual costs to be fully provided for at the end of this year.”
“In addition to its classical fitting business, Carglass Germany runs a separate activity offering glass repair and replacement for heavy commercial vehicles, notably buses and coaches. The profitability of this business has deteriorated in recent years due to the contraction in this market segment and will be negative by EUR 3.5 million in 2014. The decision has been made to close this business for total unusual costs of EUR 9 million.“
The value of the goodwill allocated to Brazil (EUR 20 million) is still under review.”
In the press release section titled, “TRADING UPDATE FOR THE PERIOD ENDING 30 NOVEMBER 2014” you’ll read the following:
“At Belron, year-to-date sales were up 1.3% on 2013 at the end of November, consisting of a 0.4% organic increase and 2.1% growth from acquisitions, partially offset by a 0.8% negative currency translation effect and a 0.4% decline due to fewer trading days. Total repair and replacement jobs have increased by 1.7% to 10.3 million.”
“In Europe, despite share growth, sales were down 4.8%, consisting of an organic decline of 6.6% due to severe market declines following an exceptionally mild 2013-2014 winter weather in Northern Europe, and a 0.6% decline due to fewer trading days, partially offset by 1.8% growth from acquisitions and a 0.6% positive currency impact.”
“Outside of Europe, sales were up 8.3%, consisting of an organic growth of 8.4% predominantly due to the extreme winter weather in the eastern US at the beginning of the year, and 2.5% growth from acquisitions, partially offset by a 2.4% negative currency translation effect and a 0.2% decline due to fewer trading days.”
During the early to mid 1990’s I held senior management positions at Windshields America, Belron’s retail subsidiary in the United States. I was fortunate to have worked with the greatest group of people that I’d ever had the opportunity to have been associated; the company grew from 50+ stores to 274 stores with exceptional sales and bottom line performance. Great people make all the difference in any organization. (December 16, 2012 blog post “What’s Your Line-up?”) The growth in store count and profitability was made possible by the performance of Autoglass. The Managing Director of Autoglass rightly boasted at the time that his company was providing the fuel (British pound profits) to help drive the growth of Windshields America and other areas of the world of Belron. True. It wasn’t his choice, but it was his view that he could have used those profits to further the goals that he had for Autoglass in the United Kingdom. Possibly true. Perhaps today Safelite profits could be diverted to help Belron around the world? If that does happen Safelite would have less money to spend in the United States to further their goals. Also a possibility.
So this week when you have a few minutes to consider the “strengths, weaknesses, opportunities and threats” (SWOT analysis) that could affect your business in the upcoming year and decide on what actions you will take to ensure that 2015 achieves the success you desire, know that even the dominate player in the AGRR industry in the world is having their share of problems. Some of their problems are market driven, so not necessarily self-inflicted. But some of them are strategic and tactic driven, so those are self-inflicted. Regardless they are not going away so don’t rejoice, but there is hope.
Courtesy of http://www.TomFishburne.com
I was reading an article that appeared in Tuesday’s USAToday with the headline – “Amazon puts 15,000 robots to work on Cyber Monday”. 15,000?!?! The Kiva Systems robots do tasks that historically have been done by some number of Amazons 88,400 employees. Robots picking products that are purchased online by consumers that then need to be shipped to them from Amazon fulfillment centers across the globe cost some number of people jobs. Using Kiva robots obviously provides great value to Amazon shareholders since they don’t require a human resource department to oversee payroll, other benefits such as medical and dental plans, vacation days, sick days, etc.. But this can’t be good for union and hourly workers.
Robots are obviously taking over or facilitating any number of manual jobs that historically have been done by employees. Amazon’s use of robots brings the product(s) ordered online and stored in shelf bins to a packer for shipping. Once the purchased item is delivered to the packer the robot returns the shelf bin back to where it belongs awaiting the next task. These robots have certainly saved Amazon the cost of workers who provided this service. The article says that Amazon spent $ 775 million for the Kiva robots and that, “The robots are part of a complex software and hardware system that simplifies picking and packing at warehouses that contain literally millions of items.” The article doesn’t mention that each robot, and the systems that supports them, cost an average of $ 51,667. Payscale.com estimates that the average Amazon employee salary cost is in a range of $ 50,098 – $ 122,195. After Amazon’s initial investment in the Kiva robots there would be ongoing costs for maintenance, repairs, replacements and of course those whose job it is to manage the 15,000 robots, but Amazon obviously did all the internal analysis and studies to see that the return on investment was well worth the $ 775 million.
The advent of using robots isn’t new, but with robots taking over responsibilities of human pickers at Amazon and the use of robots across countless industries and companies the potential loss of unskilled or low skill jobs could be devastating. Taking place at the same time is the strong push by some city and state governments to increase the minimum wage through legislation. Somehow there seems to be a potential disconnect.
Redwood.com compiled a report titled “The Top 10 Reasons Businesses Demand Enterprise-Level Automation”. Reason #2 in this report is:
“Happy and Productive Employees
Automated tasks keep people—who can get bored or irritated by doing repetitive tasks—free from drudgery. It also liberates them to do more strategic and valuable activities for the company. Automation lies at the core of all of our modern conveniences. Machines are made to do repetitive, boring tasks—without complaining.”
You can see where the use of robots and/or automation that is rapidly taking over or helping employees in their jobs providing cost reductions and greater shareholder value for companies who utilize them, but I’m guessing that most employees would prefer being “bored or irritated” and not “free from drudgery” versus not having a job. Certainly there are countless jobs that won’t be taken over by robots, but is your job completely safe from being replaced by a robot so that you can be freed to do something else? I’m guessing the Amazon employees that were picking products for packing at one time thought so.
If you’re a business owner or in management with responsibility for delivering shareholder value you have to continually be looking for ways to cut costs and increase value just as Amazon has done. There are countless jobs that aren’t going to be replaced by robots, but are there robots that can help you improve the productivity of your employees making their jobs easier and provide greater shareholder value? As companies compete against each other for business at a local, regional, national or international basis; looking for the slightest advantage against industry competitors the answer has to be yes. What are you doing to take any advantage available and ensure that you continue to grow and prosper in your industry?
“The Top 10 Reasons Businesses Demand Enterprise-Level Automation”