Posts Tagged economy

An Encounter with Jack Welch

This past Friday, while attending an automotive aftermarket conference (Auto Glass Week 2015); the keynote speaker was business icon Jack Welch. Instead of giving a speech, he answered questions from the audience for almost an hour and a half. Jack Welch in person is what I expected him to be. He’s certainly not afraid to answer any question asked and I found myself nodding and/or clapping to each of his answers. In a world of political correctness it was refreshing to know exactly what Jack’s position was on any question that he was asked.

Jack and Deb 10-2-2015

Photo Courtesy Auto Glass Week™ 2015

It didn’t matter whether the question was related to business, education or politics; he answered every question without hesitation. Jack’s view on business is all about winning. All about transparency. All about honesty. Telling those that worked for him when he was the CEO of General Electric for 84 consecutive quarters that the business they worked at needed to be either number one or number two in the world or figure out quickly how to become number one or two or the consequence would be that the business wouldn’t be a part of GE.

Jack isn’t big on tenure in education either. He believes that the customer should determine whether a professor or teacher is good or bad and whether they should stay or go. With the cost of education so high there is no room for mediocrity at Jack Welch Management Institute.

In politics Jack is a Republican.

After he took questions from the audience I had the opportunity to sit on an industry panel consisting of him, along with panelists from the automotive industry:

     Paul Heinauer, President of Glasspro Inc.

     Troy Mason, President of Technaglass

     Michael Schuch, president of XLNT Window Film Tinting

     Donna Wells, Vice President of Signature Shutters

     Ed Golda, president of Michigan Glass Coatings

Suzy Welch, renowned bestselling author, television commentator, Harvard Business School graduate and who also is Jack’s wife, was the moderator of the panel. It was an amazing experience where the panel answered questions posed by Suzy and the audience. Everyone answered questions including Jack and then he provided further commentary on the answers that were given.

Suzy Jack and panel

Photo Courtesy Auto Glass Week™ 2015

There isn’t much you can say about Jack Welch and Suzy Welch that hasn’t already been written so I won’t try. I can only say that the two of them make one heck of a team and are about as down to earth as you can be. In this day it was refreshing to see two people who didn’t hold back in answering questions.

It was an honor meeting them both and sitting on a panel with them was certainly an experience that I will never forget. Thanks to them both for the chance to spend a few hours with them last Friday. And thanks to Deb Levy for inviting me to join the panel.

Jack David and Suzy 10-2-2015

Just sayin’.

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What’s Your Formula for Success?

Is there a formula that you use to measure success in your career or to measure the performance of employees of your company that determines the success you achieve? What are the metrics or goals that you follow to measure success (or failure) that drives (inhibits) sales and profits for you company? Having metrics is obviously critical to ensure that employees know what is required of them allowing companies to be successful.

Sports are another example of the importance of metrics and formulas managers and coaches use to ensure success. If you like basketball you’ll know who Rick Majerus was (he passed away in 2012). He attempted to be a walk-on college basketball player for the Marquette Golden Eagles in 1967, but didn’t get a chance to play. Instead he became a student assistant at Marquette. After being an assistant coach to Al McGuire for 11 years; Majerus went on to become a head coach at Marquette, then to Ball State, Utah State and ending his coaching career at Saint Louis. Majerus had a short stint as an assistant coach with the Milwaukee Bucks in the late 1980’s.

During his coaching career he developed a statistics formula he believed a college basketball team needed to achieve in order to be successful. Majerus developed a metric he called the “165 Formula”. It combined three key game statistics that were added together for each individual player on the team. He totaled each player’s shooting percentage during the season for field goals, 3 pointers and free throws; believing that a successful team needed at least one of his players have these three stats add up to a total of 165. Over his coaching career Majerus won over 70% of his games, so he must have found players that he felt could hit his magical 165.

There are a lot of ways to achieve success on the basketball court. Just take a look at men’s college basketball’s current AP number one ranked team the University of Kentucky Wildcat’s. How many players does Coach John Calipari (Coach Cal) have that meet Majerus’ formula? Take a look at the graph below and you’ll see how many.

Now let’s take a look at the team that I follow, the University of Illinois Fighting Illini men’s basketball team to see how they compare against The 165 Formula. As you will see in the picture below (from the game versus the Hampton University Pirates  on 12/17/2014), the Illini have four players that beat the formula. Great!

165 Formula

After last Saturday’s game versus the Ohio State Buckeye’s, the season statistics for the Fighting Illini’s six leading players show that Rice, Hill, Eguw and Nunn continue to exceed the formula target of 165.

Fighting Illini
Name FG % FT % 3-PT % Total
Rayvonte Rice 49.7 79.7 45.5 174.9
Malcolm Hill 53.2 73.3 41.7 168.2
Nnanna Egwu 50.0 87.5 36.8 174.3
Kendrick Nunn 44.2 90.9 42.9 178.0
Ahmad Starks 36.1 88.9 32.2 157.2
Aaron Crosby 30.1 84.0 33.3 147.4
Average as of 1/3/2015 166.7

U of I Fighting Illini Statistics for 104-2015 Season

So the Fighting Illini has a record of 10 wins versus 4 losses for the year and they are not currently ranked in the AP Top 25 and they’ve lost their first two Big 10 Conference games. You’d think they’d either be ranked or winning conference games with four starters with numbers that exceed 165 as per The 165 Formula Rick Majerus felt was needed for success. Perhaps Illini Head Coach John Groce thinks that they are successful? I’m guessing not as much as he’d like.

Now let’s compare the Fighting Illini to the number one ranked team in men’s college basketball, the Kentucky Wildcats. How many players do the Wildcat’s have that meet the Majerus 165 Formula? Well…..just one.

Kentucky Wildcats
Name FG % FT % 3-PT % Total
Aaron Harrison 37.0 66.7 27.3 131.0
Andrew Harrison 36.7 77.8 32.1 146.6
Karl-Anthony Towns 51.9 74.3 20.0 146.2
Willie Cauley-Stein 60.7 60.5 0.0 121.2
Tyler Ulis 51.1 80.0 52.2 183.3
Dakari Johnson 60.5 56.7 0.0 117.2
Average of 1/3/2015 140.9

University of Kentucky Wildcats Statistics for 2014-2015

As you can see the one player on the Wildcats that scored a 165 using the Majerus formula is Tyler Ulis. He became a starter after Alex Poythress was injured after the 10th game of the season so his stats may be an outlier. The Wildcat’s had already found phenomenal success prior to Ulis getting more playing time. With the Wildcat’s averaging 140.9 points (110.4 if you take out Ulis) to the formula and the Illini averaging 166.7 points there must be more to achieving success. Besides the entire team of players performing at a level it also takes the head coach, assistant coaches, trainers and doctors to achieve success. You can add to the mix scouts, recruiters, training facilities, athletic director, along with support from students and alumni. So Coach Cal has obviously found his formula to achieve success at the University of Kentucky. He’s surrounded himself with the best players, along with the all the best people and resources needed to support the team.

So John Calipari (along with Rick Majerus) obviously found a formula that he has used to find success in his career. It’s the same in business isn’t it? Don’t we all want to be Coach Cal? To achieve a consistent level of success you need to develop your own formula. But a key ingredient is the need to surround yourself with the best people, the best team you can find to help you find great success for your organization. It doesn’t really matter what your business is, if you don’t have great people it’s going to be more challenging for you to find success against those you compete with in the marketplace.

Just sayin’.

Previous blogs on the importance of assembling a great team:

                What’s Your Line-up? – December 26, 2012

                What’s Your Line-up? – “Updated” – January 17, 2014

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The Future in the Automotive Aftermarket Industry

For me, listening to keynote speaker Tony Aquila, CEO of Solera Holdings, Inc. at Auto Glass Week in Baltimore was most interesting. He led Solera’s purchase of LYNX Services, GTS and GLAXIS from owners Pittsburgh Glass Works LLC and PPG Industries, Inc. earlier this year. Tony’s accomplishments are considerable, especially considering that he grew up sweeping floors working in his uncle’s body shop and he has a 9th grade education. You have to be incredibly impressed by the guy.

The “Strategic Focus” web page for the company states, “Solera is the world’s leading provider of software and services to the automobile insurance claims processing industry.” (Link to corporate history) Solera will certainly be changing the world of auto glass repair and replacement (AGRR) with innovative software solutions that will simplify the claims handling process surrounding glass repair and replacement. The organization has the potential to affect the way all consumers and influencers ultimately buy AGRR products and services dramatically. Depending upon the vision and direction Solera heads automotive aftermarket parts and service providers, including the auto glass repair and replacement industry (along with the collision repair industry and parts distribution industry) could be in for some big changes. It’s all about taking out market inefficiencies and reducing costs associated with those inefficiencies.

Just look at the AGRR industry. To ensure that service level expectations of the consumer is ultimately met, any software program would need to have access to the real-time inventory level of any supplier or distributor warehouses in the area, the inventory levels of any AGRR shop or technician in the vicinity vying for repairs or replacements, along with the schedules of all technicians available to properly repair or replace the part.

Imagine when an auto glass replacement is required, if it would be possible for the software program to instantly search for the part determining which supplier(s), distributor(s) or AGRR shop(s) has (have) the part in stock; perhaps ranked by cost for the part while finding the best auto glass replacement technician suited to properly install the part; when and where the consumer wants it installed. With that capability you then have to start asking some questions like:

Once the software program has all of the information required to start processing an auto glass replacement, who or what company is directly buying and paying for the part(s) required?

It could be:

  1. The AGRR shop or technician facilitating the replacement or
  2. Maybe the customer’s insurance company or
  3. If it’s a cash job the consumer could pay.

Which of the three above pays for any part required is important to determine the all-in price to be paid for replacement parts, along with the price paid for required installation supplies and labor.

So which organization determines the pricing level for the various scenarios outlined above?

Who is buying and paying for the part and installation supplies required?

Who is paying for the technician to install the part?

Answers to these and many other questions will give you an idea as to where the industry could be heading. There will be changes coming and margins are probably going to change in the AGRR industry in the near future. And probably not for the better.

What is it you’re doing to be prepared for the future?

Just sayin’.

140707.safeisrisky

Courtesy of TomFishburne.com – Marketoonist.com©

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Vehicle Miles Driven Improving?

You may have seen statistics recently relating to the increase in miles driven in July 2014 versus July 2013. Seemingly great news for any business in the retail automotive repair industry as miles driven is one of the key drivers that affect the industry and any increase is a positive indicator. As shown on the United States Department of Transportation Federal Highway Administration web site[1],

Travel on all roads and streets changed by 1.5% (4.0 billion vehicle miles) for July 2014 as compared with July 2013.”

Region

Total Travel

Percentage Change

North-East

38.3

0.0

South-Atlantic

55.4

2.4

North-Central

61.1

1.3

South-Gulf

53.4

2.2

West

58.6

1.3

o    Estimated Vehicle-Miles of Travel by Region – July 2014 – (in Billions)

o    Change in Traffic as compared to same month last year.

Great news it would seem. The governmental web site further shows that,

Cumulative Travel for 2014 changed by 0.6% (10.1 billion vehicle miles).

That sounds like continued improvement and more great news for the industry, but perhaps not…..

In the Thursday, September 18, 2014 edition of the USAToday™ a small graph was shown in the USA SNAPSHOTS® section on the front page with the header “USA’s driving stalled” (click link). According to Advisor Perspectives, the organization that provided the information shown on the graph, miles driven in the United States:

 

 “Adjusted for population growth, January to June miles driven this year are down 8.5% since 2007 peak”

 

Down 8.5%! That certainly isn’t great news for automotive retailers. You can read the article titled “Vehicle Miles Driven: A Structural Change in Our Driving Behavior“, that was written by Doug Short for Advisor Perspectives that was the source of the information on the declining number in its entirety by following this link (click here). The article takes an in-depth look at how miles driven are being affected by gasoline prices, changes in driving behavior, the effects of an aging population, unemployment trends and changes in the ways we interact with one another due to ever changing improvements in communication technologies.

 

Miles driven, along with weather and the economy are the three key drivers[2] for the automotive retail industry. How have these three key drivers been affecting your business? Based on Mr. Short’s perspective on miles driven, automotive retailers will have to rely on improvements in the economy and favorable weather to offset a real decrease in miles driven to help drive growth. You’re going to need to take greater advantage of your push and pull marketing strategy to attract customers.


If you have a desire to continue to grow your business (and who wouldn’t) into the future; it would seem advisable to work hard on ways to differentiate and separate yourself from your competitors. The decline in the miles driven has certainly had an effect on volumes to date and will unquestionably continue to influence the automotive retail industry going forward. With declining miles driven the opportunities for replacing or repairing damaged auto glass, for collision repairs, for tire replacements, oil changes, etc. will also obviously continue to decline. It’s critical for smaller retailers to find new ways to attract customers just as the large market leaders aggressively pursue those same customers with name brand awareness campaigns. Now is not the time for complacency.

 

Just sayin’.

 

complacent brands

Courtesy of TomFishburne.com


 

 

 

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Hobson’s Choice (a Free Choice or No Choice at All?)

I recently read the argument that attorneys for Safelite Group Inc. (Safelite) made relating to Connecticut’s Public Act-13-67(c) (2) in a glassBYTEs.com article. They argued that,

“it puts appellants Safelite Group Inc. and Safelite Solutions to a Hobson’s choice….”

Hobson’s choice[1] refers to a businessman by the name of Thomas Hobson who ran a livery in Cambridge, England in the 1600’s. Hobson required that every rider asking to hire one of his horses to always take the horse nearest the door. If a patron didn’t want to use that particular horse no other horse could be used. A “take it or leave it” choice. As another source on the origins of the phrase states[2], “A Hobson’s choice is a free choice in which only one option is offered.” I thought using “Hobson’s choice” in this particular instance an interesting one considering the origins of the term. More on that later.

This link to the summary of the act that was first introduced in the Insurance and Real Estate Committee of the Connecticut House and ultimately signed by the Governor of the State of Connecticut required that in the handling of any insurance auto glass claim in the State of Connecticut that:

“The act requires that a glass claims representative for an insurance company or its third-party claims administrator, in the initial contact with an insured about automotive glass repair services or glass products, tell the insured something substantially similar to: “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know. ” By law, appraisals and estimates for physical damage claims written on behalf of insurers must have a written notice telling the insured that he or she has the right to choose the shop where the damage will be repaired (CGS § 38a-354).”

Fairly straightforward.

A public radio program called “A Way with Words” talked about Hobson’s choice on one of the program segments. One of the hosts of the radio program, Martha Barnette tells us:

“The phrase Hobson’s choice goes all the way back to 17th-century England. For 50 years, Thomas Hobson ran a stable near Cambridge University. There he rented horses to students. Old Man Hobson was extremely protective of those animals. He rented them out according to a strict rotating system. The most recently ridden horses he kept at the rear of the stable. The more rested ones he kept up front. That meant that when students came to get a horse, Hobson gave them the first one in line—that is, the most rested. He’d let them rent that horse, or none at all.”

Perhaps you see where I was thinking that Hobson’s choice was an interesting phrase for the attorneys to use in their argument. First, Public Act-13-67(c) (2) is a duly enacted Connecticut law so their client really doesn’t get a choice in deciding whether they wish to follow it or not. As is their right, they can dispute the law which is obviously why the company is filing the appeals to the act which provides Connecticut consumers a choice in what company repairs or replaces their damaged auto glass. It’s just that at his stable Hobson didn’t want the same horse(s) being used each time by his patrons. Hobson wanted his patrons to use only the horse(s) that he wanted them to use. You can understand why Hobson wanted to rotate his horses so that each got equal use. Safelite wants Connecticut consumers to only use the auto glass repair and replacement (AGRR) company that Safelite wants them to use. In this case it would appear that Safelite is Hobson.

By enacting Public Act-13-67(c) (2), the State of Connecticut took steps it deemed appropriate to protect consumer choice for residents of the state. There are any number of AGRR companies operating in the State of Connecticut for consumers to use when they sustain auto glass damage. So is it “A Matter of Self-Interest or Consumer Choice”? Isn’t it Safelite that is attempting to provide Connecticut consumers with a Hobson’s choice?

Just sayin’.

Take it or leave it

Another example of a Hobson’s choice would be from Henry Ford’s book titled My Life and Work and written in 1922 referencing options available for the Model T Ford.

Any customer can have a car painted any colour that he wants so long as it is black.”

 

[1] Merriam-Webster.com meaning of Hobson’s choice

[2] Wikipedia.org description of Hobson’s choice

Other sources:

http://www.glassbytes.com/documents/07302014SafeliteLettertoCourt

http://en.wikipedia.org/wiki/Hobson’s_choice

http://www.merriam-webster.com/dictionary/hobson’s%20choice

 

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Just Sayin’ Blog – Road Trip

A few weeks ago we decided to take a road trip. The trip has taken us through Indiana, Michigan, Canada, Vermont, New Hampshire, Maine, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, D.C., Virginia, North Carolina and now onto South Carolina, Tennessee, Kentucky and then back to Illinois. We could add a couple of other states to the trip. It has been a great road trip. Besides keeping my eyes on the road I also kept an eye out looking for windshields in need of repair or replacement as I have since I entered the auto glass repair and replacement (AGRR) industry. I was also looking for mobile auto glass vehicles along the way.

Road_Signs2

In an article titled “April Miles Driven Increases” that appeared in glassBYTEs.com last week, the web site reported that there was an overall 1.8% increase in miles driven in 2014 versus 2013. Only the Northeast reported fewer miles driven. Based on our experience, the number of vehicles of all types on the road has been pretty amazing. We’ve encountered very heavy traffic everywhere we’ve been so far and, since one of the three key drivers for the AGRR industry is miles driven (the weather and the economy the other two), perhaps this is another good sign for glass breakage and future business….at least in the states visited on this road trip.

I’ve spoken with a number of people who either own or work for AGRR retail and wholesale companies; regardless of the area in the country in which they compete, each says business has been great this year! In other road trips over the past few years there have always been a plethora of windshields in need of repair or replacement on the drive, along with countless plastic and tape wrapped broken door, quarter or back glasses (the “do nothings” – those who break glass and don’t repair or replace it). On this road trip I have been surprised to see very few broken windshields or taped up door, quarter or back glasses. Hopefully this is a sign that people are repairing or replacing glass when it breaks.

I saw the first AGRR mobile van on the road trip in Canada – a Speedy Glass van (I was the President and CEO of Belron Canada in the late 90’s and early 00’s). I didn’t see my next mobile van until I saw a Tiny & Sons Auto Glass mobile van in Massachusetts. I have driven by a number of glass shops on the road trip (and stopped by a few) and I didn’t see any mobile vans parked at the shops so I assumed (hoped) that each was busy doing mobile replacements. I’m in North Carolina now and I haven’t seen any more mobile vans. Odd I think as I see them in Chicago all the time.

After the strong winter season across much of the country we experienced some “Wind at our Backs” which was discussed in previous posts. Perhaps with a steady increase in year-on-year miles driven, and if the economy will come out of the doldrums we will see some positives for the AGRR industry. You still have to have to figure out how to deal with the big guys increasing market share and the brand recognition programs in play. If this year’s weather provided and continues to provide AGRR opportunities, if the miles driven continues to grow providing further opportunities and if the economy going forward gains strength and provides further opportunities; you’ve got something to work with. Not always easy I understand, but if it was easy you’d have a lot more competitors to deal with. You just need to continue to figure out what you can do to push and pull consumers to your business.

Just sayin’.

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Just Sayin’ Blog – Disruption Innovation in Business

 

Clayton Christensen developed his disruption innovation theory studying the computer industry. Disruption in virtually any industry will determine winners and losers in business. If you visit the Christensen Institute web site you’ll read that:

“The theory explains the phenomenon by which an innovation transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability where complication and high cost are the status quo. Initially, a disruptive innovation is formed in a niche market that may appear unattractive or inconsequential to industry incumbents, but eventually the new product or idea completely redefines the industry.”[1]

Image

Courtesy of TomFishburne.com

At the annual Code Conference held at the Terranea Resort, located in Rancho Palos Verdes, California that brings together some of the world’s geekiest folks; Google’s Sergey Brin debuted Google’s driver-less car (link). These cars were designed without a dashboard, steering wheel or a brake pedal. Why? A driverless car doesn’t need any of those accessories in the cars of the future as seen by the visionaries at Google. Could this be an example of “disruptive innovation” that could affect multiple industries?

This Google designed driver-less vehicle is very different from the self-driving vehicles that Google equipped with the driver-less technology installed on the Toyota or Lexus models that Google first began using. The initial self-driving cars Google used were off –the-lot models made by original equipment manufacturers so each came equipped with a dashboard with all of the typical accessories you’d expect to find both on and under the dash. But this new Google car comes without many of the accessories deemed required, up until now, and Google added a few other things that you will find disruptive long-term. It evidently is equipped with a flexible plastic windshield.

The car can only top out at 25 miles per hour and you’re not going to be seeing it on the highways anytime soon, but nonetheless with Google behind it one can only assume that the company’s long-term goal is to dramatically change driving habits. Will this technology be successful in disrupting the car industry? It would take time and a lot of treasure, both human and monetary. Google certainly has the wherewithal to attract the best and brightest to make this project a reality and money isn’t an issue.

Experts believe a self-driving car will make driving safer. Imagine that you can text or talk on your phone to your heart’s content as you won’t need to be concerned about distractions. Human driving errors should be greatly reduced if all the other cars around you are interconnected resulting in greater safety. Older drivers would have more freedom which would be good for them and great for everyone else concerned about grandma and granddad getting behind the wheel. Disabled drivers would also gain new freedom to rely on themselves versus others. An EY Automotive study says that autos with Autonomous Vehicle Technology will surge from 4% in 2025 to 75% by 2035.

There are going to be winners and losers as self-driving cars gain traction in the coming years. What will greater safety and independence for everyone mean to the insurance industry and all of those in claims departments today if the number of accidents drops? To the collision and automotive parts repair industry? To the rental car industry? To the auto glass repair and replacement (AGRR) industry? To the trucking industry? Countless industries will be affected. There’s going to be a lot of businesses that will rise and fall with this disruptive innovation and a lot of people at risk of losing their current job in an industry affected by the self-driving car.

There will probably be a day when those who want to drive their own cars could be viewed similarly as today’s drunk driver or someone that is texting as they are putting self-driving car riders at risk.

What will the likely outcome be if Google’s self-driving cars become a “disruptive innovation” and disrupt car manufacturers, the transportation industry as a whole and change the habits of the driving public in the years to come? We’ll have to wait to see.

So is there something a company or companies are doing today (or will be doing) in the AGRR industry that is (or will) disrupt the way things operate? Are there innovations that will “completely redefine(s) the AGRR industry”? I think the answer is yes to both questions. There are plenty attempting to disrupt what it is you are doing today and I know that there are those trying to disrupt the future of the industry with new innovations.

Here is another definition of disruption innovation:

“A disruptive innovation[2] is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market.”

You probably think we already have enough disrupters in the AGRR industry, but what is your plan going to be if you’re not one of the one’s who has designed or is designing a “disruption innovation” in the industry? Something is certainly coming.

Just sayin’.

 

 

 

[1] http://www.christenseninstitute.org/key-concepts/disruptive-innovation-2/

[2] http://en.wikipedia.org/wiki/Disruptive_innovation

 

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Just Sayin’ Blog – Is it Time for Licensing?

I read an article relating to the Novus Super Session at the organization’s Annual Franchise Conference held last week in Tucson. A representative from one of the networks that operate in the automotive glass repair and replacement (AGRR) industry in the United States attended the conference and discussed industry related issues and ideas. One of the issues discussed related to the responses to survey questions that the network had asked of some number of in-network shops that either are:

    1. required to bill through the network for the insurance or fleet work that these shops do for an insurance company that utilizes this network as an administrator or
    2. shops that are asked by the network to do work on the behalf of the network for an insurance company or fleet account that the network either can’t or doesn’t want their own company owned technicians to do for some reason.

The survey question that the representative said received the most comments related to unlicensed and/or unregistered AGRR shops. The network representative reported that when the survey responders were asked if they would support the regulation of auto glass shops in their states a resounding 74.2% responded with a yes. I think the question relating to regulation of auto glass shops an interesting one and I support the regulation of auto glass shops that do replacements.

When you consider all of the various “services” that are regulated by states, it is inconceivable to me that auto glass replacements (and other automotive repairers) are not. I looked on the web site of the Illinois Department of Financial & Professional Regulation (IDFPR) that oversees and licenses those considered “professionals” by the State of Illinois. There are 237 professions that are regulated by the IDFPR starting first with those who provide “Acupuncture” services. That seems like a profession that should be regulated. If you’re going to have someone perform acupuncture on you, would you want just anyone off the street be allowed to stick needles in you? Probably not. The listing ends with “Veterinary Technician”. The professional listings include some in the medical profession, but not every specialty is listed so if you add every regulated and/or licensed professional’s in the medical field to the list on the web site would be much longer. How does the state you live regulate those they consider professionals? Do you have 237 different professions regulated and/or licensed by your state?

I think it’s interesting that some of the professions that are regulated and/or licensed by the State of Illinois include:

Real Estate Appraiser                                             Athlete Agent

Cemetery Customer Service Employee                    Community Association Manager

Detection of Deception Trainee                                Nail Technician

Shorthand Reporter                                                Timeshare Resale Agent

Understanding that a few of the professions on the truncated list above taken from the IDFPR web site could, for instance, certainly cost you money if you had a bad appraisal via a Real Estate Appraiser, but in all likelihood none of these licensed and/or regulated professions are going to put your life at risk. A faulty windshield installation, on the other hand, could cost you and/or passengers riding in your vehicle serious injury or in a worst case scenario a life.

If you visit the AutoGlassSafetyCouncil.com or SafeWindshields.com site you’ll find a variety of information regarding the importance of windshields in auto glass safety. A question on the SafeWindshield.com site asks:

What role does my windshield play to ensure my safety in an accident?

The windshield provides a significant amount of strength to the structural support in the cabin of the vehicle. For instance, in a front end collision the windshield provides up to 45% of the structural integrity of the cabin of the vehicle and in a rollover, up to 60%.

There should be no dispute regarding the importance of a windshield in ensuring the safety of auto and truck passengers, asking that those who install your windshield to be licensed and/or regulated doesn’t seem unreasonable to me? If in the State of Illinois the state government feels that there is sufficient need to regulate and/or license Nail Technicians, Athletic Agents or Shorthand Reporters, wouldn’t you think that the same state legislature would take a look at various automotive repairs that if not done properly, could cost someone a serious injury or death?

The network representative at the Novus meeting was quoted as saying that for those that the network surveyed:

“By far, the largest problem was unlicensed/unregistered shops.”

You can certainly downplay the network that provided the survey results when asking the question “What was the largest problem in the AGRR industry?” (some might suggest the right answer to the question is the network providing the information is actually the largest problem in the AGRR industry), but is it time to consider the licensing and regulation of the AGRR industry considering the importance of the windshield to occupant safety? Perhaps that licensing or regulation could include adherence and verification of replacements to the Auto Glass Replacement Safety Standard®. That might be an unpopular position for some, but would it be so bad? As auto glass professionals what are we afraid of?

Just sayin’.

 

AGW 2014 Free Admission

Link to Free Admission Ticket to Auto Glass Week 2014

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Just Sayin’ Blog – Wind at Our Backs? – Part III

Last September and December I wrote blogs titled “Wind at Our Backs?” and “Winds at Our Backs? Part II” writing that “it appears that we may have some wind at our back” when looking at the key drivers (the weather, the economy and miles driven) of the automotive glass repair and replacement (AGRR) industry. If you focus mainly on the weather as a key driver and look at what we’ve experienced in the United States this past winter, many would describe it as harsh or brutal in much of the country. Based on the weather over the past week, even though the vernal equinox or the first day of spring arrived on March 20, 2014, our winter really hasn’t seemed to have ended yet. I live in Chicago and this past winter was the coldest (December – March) ever on record and snowiest (9.7 inches from snowiest on record – 1978-79 as reported by the WGN-TV Weather Blog) I’ve ever experienced anywhere, except maybe for one when I lived in Montreal.

Chicago Lakefront 2014x

Chicago/Lake Michigan February 2014

The Old Farmer’s Almanac forecasted that the 2013 – 2014 winter season would bring us colder weather and heavier snowfall in many sections of the country and for those who were hoping that the forecast would come true they weren’t disappointed. Stretching from the Rockies to the East Coast the weather has been a big boon to the industry with extreme or unseasonably cold weather that included snow and ice storms. I’ve talked with a number of retailers and suppliers who had a great first quarter of 2014 which followed a rather lackluster 2013. One supplier told me, with his tongue firmly planted in his cheek, that on a trailing twelve months he looked like a genius since all the strategies that his company had used in the past year to increase business had really paid off.

Starting in 2011 The Weather Channel started naming winter storms that are strong enough that meet the criteria set by the prognosticators. For the winter of 2013 – 2014 The Weather Channel’s list of 26 alphabetical names were developed with the help of a Bozeman, Montana high school Latin Class. The potential storms this winter began with the name Atlas and will end with Zephyr. Through today there have been 24 named storms with the current storm that hit the Upper Midwest with up to 18” of snow before heading off to Canada. Since it is now the first week of April and a couple of weeks since the first day of spring winter storm Xenia is dumping snow in parts of Minnesota, Wisconsin, Michigan, South Dakota, Nebraska and Iowa. Enough already. Although this winter may have been good for some in the AGRR industry I’m thinking of it more like a Dr. Seuss book I read countless times to my sons when they were growing up – “Marvin K. Mooney Will You Please Go Now!

 

When you look back at this past winter named storms starting out with Atlas in early October that delivered feet of snow from the Rockies to the Upper Plains winter storms kept hitting almost every week including some areas that haven’t seen much in the way of winter weather for a few years. In early February starting out in Georgia and hitting especially the Atlanta metroplex were a couple of storms that CNBC described as a catastrophic ice storm that effectively shut down Atlanta for several days before continuing on up the east coast wreaking havoc along the way. In early March the greater Dallas-Fort Worth and North Texas area got hit with an ice storm that crippled the metroplex. The Carolinas got hit by a couple of storms in February and March with the last one being Ulysses hitting around March 10th. If you live in the North you expect to get snow and you’ve learned how to deal with it, but it’s not quite the same below the Mason-Dixon Line.

Every year there is a contest that awards a trophy called The Golden Snowglobe that recognizes the snowiest city with a population of 100,000+. The trophy typically goes to Syracuse, Rochester or Buffalo, New York each year, but as of today it appears that for the winter of 2013 – 2014 the winner for The Golden Snowglobe will be Erie, Pennsylvania with 137.2” of snowfall.

For this blog I’m not going to address the economy or the miles driven. Neither of those has really changed all that much since my December blog. Regardless whether you feel the wind is at your back or not, you and your employees are the key driver(s) in your business. How you’re dealing with the various opportunities and obstacles that you face each day in your business determines the success you achieve. All that really matters is what is going on in the market or markets you operate and I hope that you’re achieving success in the markets you compete.

As good a predictor that The Old Farmer’s Almanac was for this past winter, the prediction for the 2014 – 2015 winter season from this long-time source hasn’t been published yet, but I recently saw a very detailed prediction made by The Weather Centre for next winter. Please take the time to read and interpret all of the information and let me know what you think what the upcoming winter will be like.

Since weather is so important to the AGRR industry, in the coming months I’m hoping that you get some hail in the markets you compete. I know a couple of suppliers that think that could be their winning strategy for 2014.

Just sayin’.

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Just Sayin’ Blog – Wind at Our Backs? – Part II

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.

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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.

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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.

Just sayin’.

 

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