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AutoInc. Pays Tribute to Bud MerwinPosted 12/16/1998
Many things in our industry have changed while some remain the same, and so it is with your association. Quoting Thomas Shannon, the former executive director of the National School Boards Association: "Like any great cathedral of the world -- your association is an institution that never will be completely built. There will always be room for new additions, reconfigured dÚcor and refreshing refurbishing down through the years, all of which combine to enhance its beauty, usefulness and aura of stability. It will improve continually as new conditions emerge and the people who labor constantly to perfect the cathedral move in and out of its shadows as the calendar pages turn." My career with ASA has afforded me the opportunity to work with many fine people. I only wish it were possible to personally thank them all for that privilege, but space will not allow. I must, however, recognize a few people because, without them, my journey with you would not have been possible. First comes a big "thank you" to my family who endured the many nights and weekends with me away from home. Also to those many friends who supported the wonderful retirement gift for me. I am very grateful to Don Proven for convincing me to join his staff at Independent Garage Owners of America (IGOA). Without his insight, my 25 years on your association's staff would not have been possible. And, I am most appreciative to my good friends Ron Weiner, Bill Donahue and the rest of the executive committee who, way back in 1973, had the confidence to allow me to take the reins of Automotive Service Councils (ASC). Over the years, many people assisted my career, and I'm extremely grateful to:
My 50-year career in the automotive service industry has been exciting, challenging, rewarding, and a wonderful experience. As I take this next fork in the road, I hope to find new challenges and opportunities.
Auf Wiedersehen ('til we meet again).
George W. "Bud" Merwin III, president and chief staff executive of the Automotive Service Association, is retiring Dec. 31, 1998, after serving 25 years on the staff of ASA and its predecessor organization, ASC.
Generally, cars are better built today and require fewer repairs. How does this affect the automotive repair industry? There are several effects that result from the better built cars. One is it lengthens the time before a car comes to the independent shop because the cars have longer warranties and they are being serviced by the dealer longer. When the car first comes to the independent, it may already have 50,000 miles and we'll repair many cars until they have well over 100,000 miles. Thirty years ago, a car with 100,000 miles was ready for the junkyard. Auto manufacturers are trying to mimic independent garages by building satellite service centers. How should ASA member shops react to compete with these centers? Learn to market. Market, market, market. Our members have to learn how to maintain their customer base. You do this by providing good service. You have to be price competitive in areas such as oil changes and shocks. Also, you need to participate in a CSI (customer service index) program administered by an outside service. A CSI program will tell you how satisfied and dissatisfied your customers are so you can make changes and improvements in areas where you're not meeting your customers' expectations. A recurring concern of the industry is its negative consumer image. Has the consumer's impression of the industry improved or worsened over time? The consumer's impression has improved tremendously. The consumer really doesn't have a negative image of technicians and independent shops. The industry is its own worst customer. We hear all the complaints and criticism because we're in this business. And, people tend to complain more readily than they are willing to hand out compliments. But, if you look at it from a different perspective, you may begin to realize that it's not as bad as we in the industry sometimes believe. There are no accurate numbers, so I'm speaking somewhat hypothetically, but let's look at the whole industry. There are approximately 200,000 shops averaging, let's say, 20 repair orders a day. That's four million orders a day! Multiply that by five days in a week and then 52 weeks a year and the number of cars we're repairing is astronomical. I qualify this because neither I nor anyone else really knows how many cars independent shops are seeing every day. We do know it's an incredibly large number. When you consider how many repairs independents are making, it's astounding to see how good a job we're doing. What are some things that ASA and its members can do to improve the image? Changing the image starts at home. You can underline that. As I already stated, I do not believe our consumer image is as bad as we in the industry think. But, there are things we can do such as cleaning up waiting rooms and providing clean restrooms for the customers. Your technicians need to be clean also, even if that means providing an area where they can clean up and change clothes at night. If a guy stops someplace on his way home from work and is wearing a uniform that says Joe's Body Shop on the back in great big letters and he's totally covered with bondo dust, that sends the wrong message. Provide a place for this guy to clean up and change clothes. Take advantage of the uniform benefit available through ASA. ASA can help teach its members how to improve their own shop's appearance and image through the Automotive Management Institute (AMI) management courses. However, we can't make the owners and technicians implement changes that improve their image, they have to do it themselves. We can provide the tools, but they have to decide to use them. At ASA's recent CARS meeting, attendees listed finding competent technicians as one of the most pressing concerns facing the industry. Is there a solution to the technician shortage? There is no shortsighted solution to the technician shortage. But, we're not alone. If you think it's tough trying to find a tech, try getting waiters and waitresses in a restaurant. Our industry has not been singled out. It's a matter of supply and demand and, right now, the demand for techs exceeds the supply. Shop owners don't need to be standing on the corner crying "Woe is me." They're not rowing this boat alone. Our people are going to have to look at benefit packages and make sure they're competitive with other shops and with other industries. To pay our techs and to offer the benefits necessary to find and keep them, we have to look at what we charge for our services. The consumers have been getting a bargain. We've under priced the value of our services. I pay the copy machine repairman $95 an hour. We have to educate our customers about the value of our services and charge a fair price - one that makes it possible for us to pay the techs, or they'll go elsewhere. The other side of the equation is the demand for techs will go down as the quality of cars continues to improve. We don't know what the real numbers are, how many new technicians are needed to enter the work force every year, but that number will decline equal only to the aging work force and industry growth need. Professions such as law and medicine license their practitioners. Do you foresee a future licensing process for automotive technicians? I hope not. We've studied this and it just won't work. Licensing becomes taxation 99.9 percent of the time. Ohio's new body shop licensing may be the exception, but it's too new to tell. And, they're licensing shops, not technicians. We don't need technician licensing. What we have done and are doing is similar to what CPAs do and that's to take a competency test. You can practice public accounting without taking the CPA exam. You can repair cars without taking the ASE exams. What the exams demonstrate is that you have attained a certain level of knowledge or expertise. A few years ago Michigan wanted to implement technician licensing. ASE walked in and the industry walked in to oppose this. We told Michigan that they would be, essentially, duplicating what ASE is already doing. So, the state said we'll take ASE and lower the standards to make it easier for people to pass and obtain a technician license from the state. We said, "No thank you," and walked out. Now, there are two tests in Michigan, the state test and ASE. The state test gives the government more money they can spend on who knows what, but it doesn't prove you can do the job. Personally, I'm totally opposed to licensing. It doesn't close down the bad guy. What I favor is an employer who recognizes his responsibility to his customers and, because of that responsibility, hires technicians who are qualified to work on cars. That is more effective than any license or consumer protection law. We have thousands of consumer laws that aren't enforced. A responsible owner and a good technician is worth much more than a state law or license. Will there ever be cars that allow us to program a destination and the car will then drive us to that destination? Yes. And it's not too far off. It's going to take a couple of things that aren't fully developed yet, such as a collision avoidance system, which will reduce the number of highway collisions. But it's coming and children who are already born will live to see it. Over the long term, is the collision repair industry large enough to support both independent and consolidated shops? Sure. The consolidated shops will do more and more insurance work. The independent shops will still take care of some insurance work, but do more non-insurance work. In small communities, nothing's going to change. There isn't enough volume to attract the consolidators. After 25 years working with automotive associations, is there a single achievement or accomplishment that you can point to and say this was the most significant moment of your career? There are two that really stand out. One is the Clean Air Act of 1970. ASA and our Washington, D.C., representative at the time, Don Randall, were able to keep car manufacturers from sealing the hood from the consumer and independent garages. ASA did that. No one else. The second thing that stands out was taking an association that was bankrupt and had three employees to an association that has revenue of $10 million a year with 40 employees and a $1 million cash reserve. I can only claim to being at the helm. These accomplishments were realized with a lot of help from the industry, members and staff. Since taking the helm of ASA, what has been the most significant change in the industry that you and the association enabled? The professionalism that shops, their owners and employees have obtained. When you compare today to 25 years ago when I first came to the association, well, there's no comparison. Another significant change was educating members that they need to concentrate their efforts on the management side of their business, as business owners, vs. the technical side. Membership in ASA helps owners realize they have to learn to listen to people - their employees, other shop owners and fellow ASA members. They have to pick people's brains, ask questions and learn as much as they can about managing a business. Through association activities, classes and events, we make it possible for technicians to become professionals. What are some unfinished objectives of the association that you hope to see fulfilled in the future? The board of directors just made it possible for members to join ASA at any level - chapter, affiliate or national. Previously, a member was mandated to join all levels active in his or her area. This new benefit takes effect January 1. What has been your guiding philosophy or philosophies as a shop owner, association executive and, ultimately, ASA's president? Never ask employees to do anything I wouldn't do. I always tried to surround myself with quality people who have the skills to do the things I don't have the skills for. I've stayed very close to ASAE (American Society of Association Executives). The hardest thing I had to do was change myself from a shop owner to an association executive. ASAE has the training and resources that enabled me to make this change. I constantly remind myself ASA is not my business. It belongs to the members and the board is their elected bosses. I work for the board and the members. Where (or what) is Burning Privy, Iowa? When I first joined the staff at IGOA (Independent Garage Owners of America) my first boss, Don Proven, always introduced me as Bud Merwin from Burning Privy, Kan. Of course there's no such place. I later moved Burning Privy to Iowa and use this fictional town to make a point. That being, ASA represents a wide spectrum of people, from paupers to millionaires, from cities such as Manhattan, N.Y., to small towns such as Burning Privy, Iowa. While our membership is diverse, the one commonalty of all is their involvement in this industry. In instances where I perceive actions or decisions are being made with a narrow focus, I am able to remind myself and others of the larger responsibility of ASA by asking how something will affect our members in Burning Privy, Iowa. You have been called a visionary by many individuals in this industry. What is your vision for ASA in five years? I don't know that I'm a visionary. If I look down the road, what I do see is the information superhighway becoming increasingly important. In fact, I believe it is the key to survival in the future. While president of ASA, I've always made sure we had the technology internally that would allow us to take advantage of the electronic resources that are available and necessary to be a viable entity. What does next year promise for Bud Merwin? What will we find you doing in five years? Next year promises a slow down. It promises an opportunity to get rid of a little pressure. It fulfills a self-commitment that I made many years ago. I watched my dad work in his shop until he was in his 80s because he did not set a retirement goal and his only desire in life was a shop. He didn't know how to let it go and enjoy life. So, I made a commitment to know how to let it go and how to enjoy life. In five years I hope I'm doing something interesting. I never took a job for the money. I didn't work here for the money. But, it's been interesting. In my retirement, I will look for the same. What advice or counsel do you have for your successor, Walter Trapp? Automobile service is a negative world because it's a type of service that's provided in a negative environment. In a collision shop, it's negative because somebody is coming to you after wrecking their car. In a mechanical shop, they're coming to you because something isn't working right and they didn't plan on having to bring their car in and spending money to fix it. My advice to Walter and to our members is that instead of taking these negative situations, turn them around into something positive. A lot of our members who are successful can turn that around. They can communicate to their customers something positive. The same principle applies at ASA. My last word of advice would be to take care of the employees and remember the association belongs to the members and the board of directors. Walter can be the research analyst for the board and supply them with all the information they need and request. But, the board charts the course for ASA and his task is to take the association along the route they've designated.
1948 Merwin began as a bodyman's helper in his father's business, Merwin's Autobody & Fender.
1957 Merwin took over management of Merwin's Autobody & Fender.
1959 Merwin incorporated the business and served as chief executive officer of Merwin's Automotive Inc.
1965 Merwin attended his first Independent Garage Owners of America (IGOA) local association meeting in Wichita, Kansas.
1968 Merwin was elected president of IGOA-Kansas.
1969 Merwin attended his first IGOA national board of directors meeting in Chicago, where he served as the alternate delegate for IGOA-Kansas.
1970 Merwin attended first national IGOA convention in Los Angeles, Calif., serving as the alternate delegate for IGOA-Kansas.
1972 Merwin was elected IGOA treasurer.
1973
1974January June 1975 Merwin became founder and charter officer of the National Automotive Technicians Education Foundation Inc. (NATEF).
1980 Merwin was appointed by the U.S. Secretary of Labor to the Federal Advisory Committee on Apprenticeship Training.
1983 As co-founder of the International Autobody Congress and Exposition (NACE), Merwin co-directed the first show held in Nashville, Tenn.
1986 Merwin was instrumental in the merger of ASC and IASA to form the Automotive Service Association (ASA), assuming the position of executive vice president and chief operations officer.
1988 Merwin assists in the charter of the Automotive Management Institute (AMI).
1989September
1991 ASA publishes its first Annual Report.
1993 Merwin earns Accredited Auto-
motive Manager (AAM) designation from the Automotive Management Institute (AMI).
Merwin assisted in the hiring of ASA's Washington Representative, Robert L. Redding Jr.
1995December 1996April 15 1996/1997 The International Autobody Congress and Exposition (NACE) was selected by the U.S. Department of Commerce as one of 20 tradeshows to participate in the department's International Buyers Program.
1997 Tradeshow Week magazine announced that NACE was ranked 96th on the list of the top 200 tradeshows in the United States.
1998March
May October
November
December
"I have found that over the many years that I have known Bud, he has set a high standard for himself and in his dealing with those around him. Bud Merwin is the example of the professionalism needed to move this segment of the automotive industry into the next century. He has helped to improve the perception of the auto repair professional. Bud's vision of the future of our industry has helped to shape the way things will be done for years to come. I want to thank him for his dedication to this great association and am pleased to call him friend." Carl Miller, ASA Chairman
"Bud is steadfast in his loyalties, solid in his convictions, works hard and meets the challenges before him and his presence enriches us all." Bob Sigel,
"Bud is one of the greatest leaders in the automotive industry." Mary Ann Sigel,
"When thinking of Bud, I am reminded of a quote from General Norman Schwarzkopf: 'I admire men of character. And I judge character not by how men deal with their superiors, but mostly how they deal with their subordinates. And that, to me, is where you find out what the character of a man is.' Bud Merwin is such a man!" Don Randall
"Bud's energy and tenacity transformed ASA into the premier association for repair shop owners. His dedication to the industry enables member shops to attain professional status along with higher levels of profitability." Ronald H. Weiner, President
"Very few men or women dedicate their lives to an industry. Bud Merwin has done just that. Over the years, I have known leaders with many strengths. Seldom do you see a person who encompasses strong character, management skills and vision. Bud has provided this for the automotive repair industry. He will be sorely missed." Robert L. Redding, Jr.
"Bud's presence in our industry has raised our professionalism tenfold." Jerry McFarland
"There are all kinds of ways to measure people. But one of the things I feel is important is if you take a job like Bud's had and leave it better than you found it, its great. The automotive repair industry is better because Bud stopped by." Dick Cossette, AAM
"I appreciated the opportunity to work with Bud on the Industry Planning Council and have a deep respect for his commitment to the automotive industry and to our vocational/technical education system." James Wiblin, Ph.D.
Merwin Receives Northwood University Education AwardG.W. "Bud" Merwin III, president and chief staff executive of the Automotive Service Association, was one of 14 recipients of Northwood University's 1998 Automotive Aftermarket Management Education Award. Presented annually during the Automotive Aftermarket Industry Week, the award recognizes automotive aftermarket executives from across the United States for their contribution to the educational process in the field of automotive aftermarket. Dr. David E. Fry, president and chief executive officer of Northwood University, said the award is given "only to individuals in the automotive aftermarket management field who have made noteworthy contributions to education, public or private, on any level, inside or outside the industry." The recipients are "people of stature," Fry said. "The award is recognition of substantial dedication over a number of years to the educational process," Fry said. "Those men and women honored here are truly creators of the future." In presenting Merwin his award, Fry recited the following statement. George W. Merwin III has had a lengthy and distinguished career in the automotive industry, beginning with his experience with track and wheel vehicles while serving in the Army. He is currently president and chief staff executive of the Automotive Service Association. Prior to assuming his present affiliation, Mr. Merwin was the founding director and president of the National Automotive Technician Education Foundation, which is now a subsidiary of the National Institute for Automotive Service Excellence (ASE). ASE is dedicated to establishing the industry standard and certifying technical and vocational education in secondary, postsecondary, and proprietary schools throughout the nation. From 1988 to 1993, Mr. Merwin was chief executive officer of the Automotive Management Institute, a public foundation committed to specify curricula, provide instruction and accredit students in the field of automotive service management. He also cosponsored the Automotive Industry Education Coalition for the purpose of uniting education and automotive service, to enhance the quality and quantity of students entering the profession and to elevate the standards of education at the community level. The Congress of Automotive Repair and Service, known as CARS, also owes its existence to Mr. Merwin as a cofounder and director.
Northwood University commends George W. Merwin III and presents him with the Automotive Aftermarket Management Education Award in acknowledgment of his extraordinary contributions to the automotive industry.
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