News Briefs
Congress Rejects Minimum Wage Increase
The U.S. Senate has rejected an amendment that would have increased the minimum wage by $1 over the next two years. Sponsored by Sen. Edward Kennedy (D-Mass.), the amendment to the consumer bankruptcy legislation was defeated by a vote of 55-44, largely along party lines.
Proponents of the wage hike argued that the increase was needed for hard-working Americans. Opponents argued that the increase would devastate the economy and hurt small business. Further, opponents argued that raising the minimum wage would discourage businesses from hiring and that greater relief will come to Americans through tax relief.
The amendment would have raised the minimum wage 50 cents on Jan. 1, 1999, and an additional 50 cents a year from that date. The last increase of the minimum wage took place in September 1997, when it was raised to $5.15.
DuPont to Acquire Herberts Group
DuPont has announced that it has agreed to acquire Herberts Group, the coatings company of Hoechst AG, for $1.89 billion (DM 3.13 billion). The acquisition, pending government approvals, would create the world's third-largest coatings company and the leading automotive coatings supplier with combined sales of $3.7 billion.
New Service Hunts Hard-to-Find Parts
O.E. Parts announces a new service to ASA members who need assistance locating original equipment parts for domestic and foreign vehicles. The nationwide service is free and easy to use. Call, fax, or e-mail your original equipment part number, and they will help you search for back-ordered, discontinued, non-stock and obsolete automotive and truck parts. For more information, call (877) OEPARTS or e-mail OEPARTS@prodigy.net. ASA members outside the United States, call (503) 554-1244.
Industry Professionals Convene at Mitchell Technology Forum
More than 100 professionals from the collision repair and insurance industries gathered at Mitchell Business Systems' Collision Repair Technology Forum in September to address the future of information management and its impact on the field.
Attendees deliberated on several issues regarding the ever-changing role of technology in the collision repair industry. Topics included "The Next Generation of Estimating and Imaging," "Collision Repair and the Internet, What are the Possibilities?" and "Wireless Technology to Improve Shop Production, Customer Satisfaction and Cycle Time."
The technology forum not only allowed shop owners to gather information on new technology, it also provided them with an opportunity to voice their insight, experience and needs to Mitchell technologists, Internet developers, product managers and database specialists. Mitchell intends to incorporate this feedback into the development of its future products and services to deliver technology that will help collision repair shops gain productivity and profitability.
Service-installed Market Outpacing DIY Purchases
"The service-installed market is capturing a growing share of car and light truck aftermarket product volume," reported James A. Lang, president of Lang Marketing Resources Inc., of Wyckoff, N.J., a research and consulting firm specializing in the vehicle products industry.
According to Lang, the service-installed market accounted for 68.8 percent of 1990 light vehicle product volume, while do-it-yourself purchases represented 31.2 percent. During 1994, the service-installed volume climbed to 71.1 percent of light vehicle aftermarket product sales, as DIY share slid to 28.9 percent. By 1997, the service-installed market represented 73.1 percent of light vehicle product volume, with do-it-yourself sales shrinking to 26.9 percent.
"Between 1990 and 1997, the service-installed market for light vehicle products increased more than $12 billion in current dollar sales," said Lang, "while the do-it-yourself market grew just over $1 billion in current dollars."
"Over the next five years, Do-It-Yourself purchases will account for a diminishing share of the light/vehicle aftermarket," predicted Lang, "while the service-installed market will continue to account for over 90 percent of light vehicle aftermarket product growth."
I-CAR Renames International Office
The I-CAR International Office in Rolling Meadows, Ill., has been renamed the I-CAR Volunteer, Instructor, and Customer Support Centre.
"We feel it is important that the office has a name that makes clear our strong commitment to supporting our international network of dedicated volunteers and instructors," said Tom Mack, executive vice president of I-CAR.
As part of the continuous improvement plan, I-CAR is currently working to achieve the highest possible levels of service in the following areas: fast processing of course paperwork, student certificates, and Gold Class applications; accurate handling of all material orders; customer service support that exceeds volunteers and instructors expectations; effective marketing of I-CAR and the Gold Class Professionals program to the general public, as well as the industry.
Sears Case Could Invoke Industry Problems || The Basics of Four-Wheel Alignment Service || Getting Things Straight in the Body Shop || "How's Your Business?" Annual Survey || AutoInc.'s Tribute to Bud Merwin || The Increasing Cost of Doing Business || Guest Editorial || Tech to Tech || Tech Tips || News Briefs || Taking the Hill || Around ASA || Net Worth || Stat Corner || Shop Profile || Chairman's Message
AutoInc. Magazine ® Vol. XLVI, December 1998 (http://www.asashop.org)