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Using a talk-show format complete with a television anchor behind the desk, Kevin Caldwell, AAM, NACE 2000 chairman, delivered the opening address to attendees. Held in the Valencia Ballroom at the Orange County Convention Center, Caldwell spoke on a number of key issues that influence collision repair professionals today.
Caldwell said there is good news to report - businesses are better off today than they were a year ago and cited one study that reports a 4 percent increase in repair orders. But the industry still has a way to go, said Caldwell.
Among the topics Caldwell discusses were insurance industry and repairer relationships, information providers, consolidations and trends for 2001.
"More if the claims handling process is handled in the shop," said Caldwell. At the same time, better software is available. These changes have a benefit to shops and are being accepted by shops, said Caldwell, but the more work is being done.
Working closely with information providers has also led to changes. "Improvements have been made, but they still need to work on some of the language," said Caldwell.
Caldwell said the number of direct repair programs have basically leveled off. "In 2000, we really didn't see any significant increases, said Caldwell. He also believes consolidation had little effect on the industry as a whole last year.
To continue to make progress, Caldwell said all collision repair professionals need to focus on making information available for everyone. He agrees with other industry experts that an increase in electronics on vehicles will have a strong influence on the repair of vehicles. We're seeing that already and the trend will continue, said Caldwell. As telemetics increase, so will the cause for concern for repairers.
In addition to increased electronics, Calwell said repairers can count on changes in design, an increase in aluminum and an increase in plastics. "The short answer here is training, training, training," he said.
Calwell's said his final word was "communicate!" He asked attendees to "share what they know and learn from others out there."
Following Caldwell's presentation was a brief awards ceremony honoring the Thomas B. Babcox AMI Educational Scholarship recipient and the winner of the BodyShop Business Collision Repair Exectutive of the Year .
David Rosenthall, Roth and Miller, Portland, Ore. received the $1,000 Thomas B. Babcox award to attend NACE; and Kevin Caldwell returned to the stage to receive his award when he was named the Collision Repair Executive of the Year by BodyShop Business. Caldwell has served three terms as NACE chairman and is a second-generation recipient of the award. His father previously received the same award.
"It's important to know where we've been. But it's imperative to know where we're going." That's why the windshield is bigger than the rearview mirror, Daniel Burrus told NACE attendees during his keynote address Friday morning.
Burrus challenged some conventional ideas about business and the sharing of information and knowledge. He said it's human nature for individuals to be willing to share "some" of their knowledge, but they hold back a portion in order to maintain an edge. In business, this means they hold back knowledge to maintain a competitive edge.
Rather than having a position of being in competition with other shops, Burrus encouraged the audience to be different from other shops. To be better than other shops. In order to make this happen, Burrus said we should share our knowledge fully.
He illustrated this point by asking the audience to picture the convention hall dark, lit only by one candle. In each person's hand, was an unlit candle. If the lit candle was used to light the others, the room would be illumened without diminishing the light of the first candle.
NACE, he said, offers a perfect opportunity for attendees to share all the knowledge they have.
As everyone developes the same base of knowledge, standardization can become a reality. Standardization, in turn, enlarges the marketplace. The Windows(r) operating system provides a good example of this, Burris said. The use of personal computers became widespread only after there became a standard operating system.
In the collision industry, Burrus called for the information providers to standardize for the benefit of everyone, both inside the industry and motorists outside the industry who rely on body shops to repair their vehicles.
Burrus also encouraged the audience to change the way they do business. If you return to the shop after being away at NACE for a few days, and the work on your desk is piled up, and if all you want to do is get through that pile of work so you can get back to the way things were before coming to NACE, then the show has no value, he said. The goal is to do things differently. To work differently. Better.
The way people work now can be described as crisis management. People focus on whatever problem is pressing at any given moment. "We crisis manage our business and we cirsis manage our lives," Burris said.
People get burgler alarms after their home has been robbed. Husbands and wives begin to work on their relationship when they begin seeing a divorce attorney. People begin to diet and exercise when a doctor issues a directive.
It isn't necessary to wait for a situation to reach crisis proportation before we begin managing it, Burrus said.
"You can be a visible futurist," Burrus said and learn to anticipate the future needs of your business so you will be ready when those needs arise. But, how does one become a "visible futurist?"
To begin with, Burrus said spend one hour a week "unplugged from technology and plugged into your future. During this hour, ask yourself, 'What are the problems I'm about to have?' " Anticipate the problems -- and the solutions.
Burris encouraged the audience to visit his Web site (www.burrus.com) for additional ideas and guidance on how to become a "visible futurist." In total, he said he has 30 strategies which are available free. To find these strategies, open the "Audience Handout" section of the Web site and, using "NACE" as the password, access will given to the strategies.
Kevin Caldwell of Autobody by Caldwell in Laguna Hills, Calif., and chairman of NACE 2000, was named this year's winner of the Body Shop Executive of the Year award.
The award is given annually at NACE by Body Shop Business magazine. Denise Lloyd, publisher of the magazine, presented Caldwell with his award during the NACE Grand Opening Friday morning.
Lloyd also presented the Tom B. Babcox Scholarship during opening ceremonies. David Rosentahl, shop manager of Roth and Miller Autobody in Portland, Ore., was this year's recipient. The $1,000 scholarship is presented yearly to enable an industry professional to continue their management education by taking Automotive Management Institute courses and by attending NACE. Babcox was the founder of Body Shop Business and the scholarship was established after his death as a memorial to his commitment to continuing education.
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In a NACE press conference hosted by the Automotive Service Association, Dr. Youcheng Liu, M.D., Sc.D., gave a summary of the ongoing study on isocyanate exposure and asthma in body shops. Liu is an associate research scientist at the Yale University School of Medicine.
The study, funded with a $2 million grant from the National Institute for Occupational Safety and Health, is in the third year of what is expected to be a five-year project.
Isocyanate asthma is classified as occupational asthma. Diagnosing occupational asthma is difficult, Liu said. Specifically diagnosing isocyanate asthma is even more difficult.
Isocyanate properties, the cause of isocyanate asthma, are comprised from a group of chemicals contained in paint hardeners, primers and sealers. Results of the study thus far indicate the greatest risk of contamination is by intaking these properties through the skin and by breathing.
The study is focusing on how to diagnose isocyanate asthma and the characteristics of isocyanate exposure.
Individuals in closest proximity to spraying experience the greatest exposure. Painters, for instance, gave higher exposure levels than do office personnel. Skin exposure "could be extensive," Liu said. Surface tests have found high levels of isocyanates on vehicles shortly after they were painted, on the hardener containers, mixing benches, and gun caps.
Skin contamination by task shows increased exposure when clear coating, priming, sanding (both wet and dry), and sealing. Additional, the study has shown that latex gloves may not be beneficial in protecting against skin contamination, Liu said.
Of the painters studied thus far, nearly 35 percent have asthma-like symptoms. An equal percentage, however, do not have symptoms.
To minimize exposure, Liu recommends the following:
To date, Liu and his colleagues have conducted surveys in 25 shops. By study's end, they will study 50 shops.
Being successful in the collision repair industry requires much more than quality workmanship. There is a direct link between productivity and profitability. Today's highly successful shop understands this link and has found ways to introduce efficiencies without reducing workmanship quality.
In the NACE management seminar on cycle time held Friday, a large audience heard four panelists share their proven methods for reducing cycle time.
Bill Lawrence, the chief operating officer for Caliber Collision Centers said has lot has been said over the last couple of years about cycle time. Positively, there have also been many accomplishments toward that objective during that time.
Speed, Lawrence said, is a "differentiater." It gives one shop a competitive advantage over another shop. The value of cycle time improvements can be measured by several factors, one being improved customer satisfaction. Another measurement is insurer cost containment, derived from reducing the length of time a customer rental car is needed.
From the repairer's perspective, the most important measurement is productivity increases, which translates to more sales and more revenue per square foot of shop space, Lawrence said.
Randy Profeta, collision repair business expansion manager for Toyota Motor Sales USA, said optimum cycle time isn't achieved by working faster. Optimum cycle time is achieved by eliminating waste, irregularities in the repair process, and overburdening the process.
The technician, Profeta said, is the only person involved in the repair who produces value. In order to maximize value and improve cycle time, there should be no waste or irregularities to prevent the technician from working on vehicles.
In analyzing cycle time, Profeta said Toyota discovered the technician was working on vehicles only five hours in an eight-hour day. The other three hours were spent in various tasks such as moving cars, seeking clarification on unclear repair orders, and waiting for a vehicle needing repair to be readied for them.
Because the technician creates value, Profeta said Toyota has clearly defined the role of this position so that they are never taken away from their job to do tasks such as moving cars. Defining the technician's role was coupled with improved training and the implementation of a pay plan that rewards the desired results.
Excluding the technician, Toyota classified the other body shop positions along three lines: customer service representatives, production and estimating. These positions support the technician, Profeta said. And, just as the role of the technician was redefined, the roles of these positions were also redefined.
Eliminating irregularities in the repair process is one of the keys to improving cycle time identified by Profeta. One key to achieving this is that after redefining the staff roles, cross tasking is discouraged. By specializing in one task and by each person knowing what their responsibilities are and what the responsibilities are of the other personnel, a consistency in work procedures is introduced that results in a determinable workflow.
The panel included ASA member Nick Gojmeric, president and CEO of Collision Plus Auto Body Repair Centers; Shawn Hezar, vice president, Caliber Collision Centers; Tom Williamson, president, Williamson Enterprises d.b.a. Marina Auto Body; Steve Dichter, M2 Collision Repair Centers; and Steve McLaughlin, True2Form Collision Repair Centers.
The session focused on consolidation and its present state in the industry. As the session began, Reiss said that overall, the impact hasn't been what people envisioned it would be.
Dichter discussed what he believes is driving consolidation, pointing out three key areas: repair costs savings, improved retention rates from claims service, and expense savings. He also covered some of the processes to create an even more profitable industry through consolidation. His requirements for success include a long list of guidelines, including cooperation between repairers and insurance companies, creativity, capital, people and training.
On the current state of consolidation, Dichter said, "It's a very complicated business, it's a very exciting business for newcomers, and it's a very challenging business." The result, however, is a better industry and one that raises the bar, he said.
Hezar outlined several service offerings available through consolidation. They include: A 24-hour call center, assignment follow-up SOP, single point contact, national lifetime guarantee, marketwide service provider, load leveling, client-specific management reporting and rental car management/risk sharing. He also said consolidation offered benefits such as guaranteed delivery dates, standard terms, client-specific cross marketing, a customer appreciation package, mobile warranty service in some cases and an advanced production process.
McLaughlin summed up his presentation with the following advice: "The two reasons to get involved with consolidation is to provide value for your people internally and externally.
Consolidation isn't right for everyone, and it may not be a viable option in some areas. The panelists agreed that it's an individual choice and one that should thoroughly researched.
After all the panelists had a chance to address the audience, Reiss opened the floor to questions.
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