Archive for category Innovation
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
Posted by "Just Sayin'..." in Acquisitions, ADAS, AGRR, aumotive after-market, Auto Glass, Auto Glass Networks, Autoglass, Business, Call Centers, customer, Disruption, Disruptive Innovation, Fleets, General, Innovation, Insurance, Service, state government, Technology, U.S. Govt., Uncategorized on August 20, 2019
Today the competitive landscape in the auto glass repair and replacement (AGRR) industry in the United States was dramatically altered. We saw this morning an announcement that Safelite, the largest company in the space, purchased the second largest company. As the clear market leader Safelite was perhaps 14+ times or so larger than TruRoad Holdings. By acquiring the companies that make up TruRoad and bringing them into the Safelite platform the gulf between Safelite and the possible number two AGRR company Glass America is even more gigantic.
You’d have to believe that auto insurers, fleets and even consumers would have a strong interest in ensuring that competition continues to exist for AGRR services. Insurers and fleets especially would have interest in seeing a strong national competitor emerge to keep pricing and service levels in check considering the market share Safelite controls. The prospect of building a true competitor and all that would be required to compete against Safelite in the marketplace would be an incredibly daunting task and in my opinion is highly unlikely considering the new competitive landscape in the AGRR space with Safelite acquiring TruRoad.
Baseball player and coach Yogi Berra was once quoted as saying when asked about the chances of the New York Yankees winning a pennant race one year, “It ain’t over til it’s over.” I’m sorry to say that competition in the AGRR space might be over. Welcome to the new normal.
Posted by "Just Sayin'..." in ADAS, aftermarket, AGRR, AGRSS, aumotive after-market, Auto Glass, Auto Glass Safety Council, Autoglass, Business, cars, Collision Repair Industry, Disruption, Disruptive Innovation, driverless car, Driverless Cars, ideas, Innovation, Leadership, OEM, Technology, Uncategorized on July 1, 2019
If you’re part of the automotive aftermarket repair industry you’ll find interesting an article titled “Car Safety Systems That Could Save Your Life” written by Mike Monticello (@MikeMonticello) for Consumer Reports. The article detailed a Consumer Reports study on vehicles with ADAS technology onboard and the effect it could have on your business. The study reported that, “ A majority—57 percent—reported that at least one advanced driver-assist feature in their vehicle had kept them from getting into a crash.” Considering that the study involved 72,000 vehicles the potential impact on the automotive repair industry in the years to come could be dramatic.
Mitchell International, an organization providing technology solutions to the insurance industry as well as automotive repair industry, reports that during the first quarter of 2018 the average gross collision appraisal value showed that the average cost of collision repairs was $3,512. When you then consider the Consumer Reports study showing that 57 percent of vehicles with ADAS technology managed to avoid a collision equates to 41,040 fewer vehicles needing repairs. The lost repair value would result in a revenue loss to the collision repair industry of $ 144,132,480. An amazing number considering the small overall size of the Consumer Reports sampling. Imagine the effect this lost revenue will have on the companies that supply the body parts, paints, auto glass and mechanical parts to the collision repair industry.
The Consumer Reports article goes on to explain that “48 percent for the 2019 model year, according to data compiled by Shawn Sinclair, CR’s automotive engineer for advanced driver assistance systems” have automatic emergency braking (AEB) systems. In 2018 “only 29 percent of new vehicle modes sold in the U.S. in 2018 had standard AEB”. Within the next few years it is expected that the majority of OEM car manufacturers will include basic AEB ADAS technology on new vehicles. Granted it will take a number of years for the automotive repair industry to feel the full effect of ADAS technology across the entire United States car parc of 289 million vehicles, especially with the average age of a vehicle in the United States at 11.8 years as reported by the web site statista. IBISWorld.com estimates that total United States collision industry revenues in 2018 totaled $ 47 billion.
You can just do the math to see what the ultimate effect of ADAS (Advanced Driver-Assistance System) technology across the entire car parc will have to the collision repair segment of the automotive repair industry. The effect to the companies that supply parts and services will also be just as dramatic. What is your company’s strategy to deal with the potential loss of revenue that ADAS technology brings because it’s coming?
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!!
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”