July/August 2011 The Texas Automotive Recycling Report TARA’S 2011 BOARD OF DIRECTORS Tim Straney, President Glenn’s Auto & Truck Parts P.O. Box 925508 Houston, TX 77292 Phone: (713) 688-8905 Fax: (713) 681-5169 Email: [email protected] Lucy Clinton, District 1 Director Westex Auto Parts, Inc. P.O. Box 1807 Big Spring, TX 79721 Phone: (423) 263-5000 Fax: (432) 267-1680 Email: [email protected] Don Painter, At Large Director Browning Auto Parts 3212 E. Cesar Chavez St. Austin, TX 78702 Phone: (800) 338-5191 Fax: (512) 385-3719 Email: [email protected] Chip Collins, Vice President Guaranteed Auto Parts 5808 Elliot Reeder Ft. Worth, TX 76117 Phone: (866) 780-0200 Fax: (817) 834-2456 Email: [email protected] Barry Rubin, District 2 Director American Auto Salvage Inc. 2567 Decatur Ave. Ft. Worth, TX 76107 Phone: (817) 335-3328 Fax: (817) 335-2711 Email: [email protected] Dale Scott, At Large Director Texas Auto Salvage 3925 E. Jefferson Grand Prairie, TX 75053 Phone: (972) 263-3306 Fax: (469) 773-1330 Email: [email protected] Bruce Ormand, Sec./Treasurer A1 Partsmart P.O. Box 17998 Austin, TX 78760 Phone: (512) 243-2718 Fax: (512) 243-2850 Email: [email protected] Mark Hardy, District 3 Director Burnet Auto Salvage P.O. Box 278 Phone: (512) 756-6340 Fax: (512) 756-7366 Email: [email protected] Michael Evans, At Large Director Central Texas Recyclers P.O. Box 548 Brownwood, TX 76804 Phone: (877) 646-6020 Fax: (325) 646-7239 Email: [email protected] Craig Barker, Past President Hi-Way Auto Parts 11315 Hwy. 64 West Tyler, TX 75704 Phone: (903) 539-2436 Fax: (903) 593-8009 Email: [email protected] Cheryll Lambright, Executive Director TARA P.O. Box 842084 Houston, Texas 77284-2084 Phone: (800) 710-8272 Fax: (713) 461-1515 Email: [email protected] Lynn Helmers, District 4 Director Discount Used Auto Parts, RGVLLC 96 Frontage Road Alamo, TX 78516 Phone: (956) 464-7171 Fax: (956) 464-8300 Email: [email protected] Ronnie Patke, District 5 Director Parts Unlimited, Inc. 17511 Pearland Sites Rd. Pearland, TX 77584 Phone: (281) 489-0990 Fax: (281) 489-3111 Email: [email protected] Publisher TARA retains the services of R.J. McClellan, Inc. Newsletter advertising opportunity inquiries should be directed to: R. J. McClellan, Inc. 445 Broadway Avenue #500 Ron McClellan St. Paul Park, MN 55071 Advertising Sales Phone: 651-458-0089 Sheila Cain Toll Free: 877-525-4589 Layout & Design Fax: 651-458-0125 Email: [email protected] Keith Toomer, At Large Director Doggett Auto Parts P.O. Box 962 Bryan, TX 77806 Phone: (979) 778-7536 Fax: (979) 778-1338 Email: [email protected] Lalo Rendon Lalo’s Auto Parts 9604 New Laredo Hwy. San Antonio, TX 78211 Phone: (210) 623-6622 Fax: (210) 623-6628 Email: [email protected] Executive Director Newsletter content and association membership inquiries should be directed to: Cheryll Lambright TARA Executive Director P.O. Box 842084 Houston, Texas 77284-2084 Phone: 800-710-TARA (8272) Fax: 713-461-1515 Email: [email protected] The Texas Automotive Recycling Report The Texas Automotive Recycling Report is published six times per year for the Texas Automotive Recyclers Association. None of the material in this publication necessarily reflects the opinion of TARA, its officers, directors, staff, members or it’s Publisher. Statements of fact and opinion are the responsibility of the author alone. Articles and letters suitable for publication will be published in the next scheduled newsletter as space permits. Articles may be edited for length. Throughout this issue, trademarked names are used. Rather than place a trademark symbol in every occurrence of a trademarked name, we state we are using the names only in an editorial fashion, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Mention of trade names, commercial products, or techniques does not constitute endorsement or recommendation for use. July/August 2011 4 ASSOCIATION NEWS President’s Message By: Tim Straney On and off for the past 10 When I was approached by the years, the Houston Fire DepartHouston Fire Department about ment has been using my yard to hosting these drills, I quickly realhost training drills for Houston Fire ized that it was a great way to give Fighters. During this training drills, back to the community. By profire fighters, along with EMS workviding a facility and “practice veers, learn and practice the skills hicles”, firefighters are afforded the needed, and procedures used, invaluable opportunity to not only when responding to automobile practice, but to learn from mistakes accidents in which the vehicle ocmade during these training drills… Fire truck entering cupants are pinned inside the vehiduring non life and death situaGlenn’s Auto & Truck Parts yard cle. When these types of accidents tions. This is a small sacrifice for occur, the first responders have to Glenn’s Auto & Parts, but it’s a BIG act swiftly, and doing so in a steady and controlled pay off for the community! Reach out to your local fire manner is paramount to the safe rescue of the vehicle department this month; you might be surprised how occupants. Practice, practice and more practice is the easy it will be for you to help. best way to acquire the skills and confidence needed to quickly maneuver in these life and death situations. A ram is used to perform a Dash Lift Results of a Fifth Door Conversion July/August 2011 5 ASSOCIATION NEWS A letter From the Executive Director By: Cheryll Lambright It has been a tough April and May for TARA members. Norman Dulaney, one of the original pioneers of, not only TARA, but of this industry and Mark Hardy, one of our young, vibrant board members, with a great smile and an amazing amount of knowledge to share, passed away. It presented an opportunity for members to gather, from near and far, and reflect on the many “good” times and “difficult” times that they have shared. As always, it brings to light the fact that we do not keep up with our members as much as we should. Stress and busyness make us lazy when it comes to connecting with our friends and as always, we assume they can wait. Staying connected keeps this association and this industry strong and in these times it always helps to know you can resolve a problem, get an idea, share a thought or a laugh and help someone get through a tough spot. This has always been the infrastructure of the members of TARA – coming together and helping and enjoying. Start getting better connected and reconnected -----DO NOT pass up the opportunity to come to the 2011 TARA Expo and Tradeshow in San Antonio. We have tried to make the costs very reasonable with rooms only $109.00 in the beautiful St. Anthony Hotel, two blocks from the Riverwalk. This is an historic hotel with ornate personality and many stories. There will be more than 30 vendors at the tradeshow as well as the much requested ---“great casino night/dinner and auction” on Friday night. Casino night gives everyone the chance to win great prizes no matter if you are a seasoned gambler or not. Admission for TARA members is only $150.00 and that gives you tradeshow entrance days, casino night/dinner and lunch for two days. A tremendous deal and a great chance to catch up and have some fun all under the allusion of being educated! It all starts with a registration reception on Thursday night from 5:00 to 7:00 in the Peacock Alley of the St. Anthony. Use the registration furnished in the TARA Report, or go online for the forms and get your room and spot reserved. The room block is only until Aug. 30 so book early. The schedule is set up so that on Saturday afternoon at 4:00 you are finished with the Expo and can have a great night on the San Antonio Riverwalk or fine dining throughout the city. Don’t disappoint yourself and everyone else --- Be There! July/August 2011 6 ASSOCIATION NEWS Legislative Report By: Bruce Ormand, Legislative Committee Chairman Greetings to everyone and hope all is well for everyone. The Texas Legislative regular session has wound down and the special session is starting and I wanted to get everyone up to date on the status of bills we were monitoring. All the bills below have passed through the house and senate to the governor. You can research the bill and the status at www.capitol.state.tx.us . This gives you the opportunity to see what effect it will have your business. One of the largest bills to be passed was HB2357 by the TX DMV, this bill paves the way for electronic titling. I currently believe this will help pave the way for better compliance and enforcement on the behalf of TX DMV. The one thing that is true is that we are all too busy and life’s demands are taxing at best but I want to encourage everyone to realize that we are in the fight of our lives. The illegal operators have made making a profit much more difficult and continue to bring to demise the legitimate busy owners. TARA has made great strides in developing relations with our state governing bodies and while nothing is as fast as you would like, you have to take things one step at a time. We are already working on strategies for 2013 and will be working with the different government agencies to help level the playing field for the legitimate business owners. The battle is far from over and there is much work to be done but I want to thank everyone for their support. Please take time to review the bills listed below and make sure that you’re in the know for your business’s sake. We will be asking for help in the near future to raise money for our PAC fund, we will need to raise $20,000 dollars by August of 2012. PAC fund money can only come from your personal account, it cannot come from your business. The PAC fund was a tremendously forceful playing card this legislative session. I guess that is all for now. Everyone have a safe and wonderful summer. See you all at the Expo and Tradeshow in San Antonio. HB 1422 Truitt Watson Relating to the issuance of titles for certain motor vehicles that are the subject of insurance claims. Companions: SB 1136 Watson(Identical) 3-16-11 S Introduced and referred to committee on Senate Transportation and Homeland Security Bill History: 05-31-11 G Sent to the Governor HB 2017 McClendon Williams Relating to the organization, governance, duties, and functions of the Texas Department of Motor Vehicles. Companions: SB 1401 Williams (Identical) 5-12-11 S Placed on the Senate Calendar Bill History: 05-30-11 G Sent to the Governor HB 2357 Pickett Williams Relating to motor vehicles. Companions: SB 1402 Williams (Identical) 5-21-11 H Reported favorably from committee on House Transportation Bill History: 05-30-11 G Sent to the Governor July/August 2011 ASSOCIATION NEWS SB 266 Williams Harless Relating to notice required in connection with possessory liens on motor vehicles. Bill History: 05-26-11 G Sent to the Governor SB 529 Huffman Hunter Relating to the regulation of motor vehicle dealers, manufacturers, and distributors. Companions: HB 2293 Hunter (Identical) 5- 9-11 H Laid on the table - subject to call see SB 529 Bill History:09-01-11 G Earliest effective date SB 690 Carona Miller, Sid Relating to the enforcement of a self-service storage facility lien. Companions: HB 1259 Miller, Sid (Identical) 5-12-11 H Laid on the table - subject to call see SB 690 Bill History: 05-25-11 G Sent to the Governor SB 694 West Smith, Wayne Relating to the regulation of metal recycling entities. Bill History: 05-31-11 G Sent to the Governor SB 1035 Williams Harless Relating to motor vehicle title services. Bill History: 05-30-11 G Sent to the Governor 7 July/August 2011 8 ASSOCIATION NEWS Managing the Customer Experience I value my customers. One of the most important ways I value my customers is that I actively listen to them and try to put myself in their place. I try to walk in their shoes. Many of my customers have told me that is one of the reasons they like working with me. I was once told “People don’t care how much you know, until they know how much you care”. So I make it a point to listen, and if I catch myself jumping ahead and/or not seeing the problem from their side of the counter, or desk or whatever, I stop and refocus. I want to clearly understand what the issues are so that I can join with them in creating the solution. I need to know we have made contact and the solution is something created, not imposed. I don’t assume I know everything there is to know about the automotive recycling business. Every year I see something I have never seen before or hear an idea that is innovative. Obviously there are a lot of similarities from one yard to the other, but there are many differences. These differences are often the places where the most progress can be made. In a business climate where part prices are posted on the Internet companies need additional ways to create a JND (Just Noticeable Difference) between themselves and their competition. The way to do this is to create a culture that is focused on the customer experience. There are three approaches to creating a business culture that focuses on managing the customer experience. They are People, Processes and Perception. People: Your people greatly influence the perception your customers have of your business. This is done every time there is phone conversation. Whether it is to order a part, call with a problem about a part or delivery, or call to discuss billing. These are what I refer to as ‘touch points’. In your business the people July/August 2011 9 ASSOCIATION NEWS that are in daily contact with your customers are customers need to realize your commitment to your sales force and your delivery/shipping pertheir success. The “voice” of your customer must sonnel. Your bookkeeper be heard throughout your personnel will occasionally “People don’t care how company. This can be done have contact with you cusmuch you know, until they through survey’s, inter comtomers and in many cases it pany meetings, and open know how much you care” has the potential of being a house initiatives. Customnegative experience for the ers invited into the process customer. are much more likely to see The words your staff chooses, the actions, or inyou as a partner and not just a vendor. actions taken create a perception of your company. Key drivers to an exceptional customer expeEach interaction either tightens or loosens their ties rience depend on your management of the three to your company. This experience becomes a “valP’s – People, Processes and Perception. How you ue add” to your product and helps create distance, create and sustain this culture in your company will a JND, between you and the competition. Your determine whether you are your customers’ first company needs to be in control of these imporchoice or just a choice. tant interactions; creating procedures and training Robert Counts is a small business owner and curthat maximize the opportunity. You need to train, rently works with auto and truck recyclers in the United monitor and coach these “touch point” employees States and Canada. He manages owners’ groups that in creating a positive customer experience. are largely family owned businesses. He does indepenProcesses: In order to meet and exceed your dent consulting on buying, sales, operations, customer customers expectations you must put into place relations, financial health and facility layout and design. best practice processes and policies. These proceHe has experience in land development, commercial dures and policies must emphasize the effect that construction and inventory control. Robert conducts each employee that handles or sees a part has on seminars on sales, operations/production, inventory the customers experience. Each employee must be systems, growing the business, managing difficult emable to answer the following questions: ployees, managing the family business, and succession • What creates an exceptional customer explanning. Robert designed and is involved in the United perience? Recycler’s Accreditation Program. • What creates a negative customer experiChad Counts is specializing in family dynamics ence? and communications. Currently, he is performing URG • What do I do that impacts that experience? accreditations and assisting in Family Business trainHaving this as part of your employee training ings. Additionally, Chad provides statistical analysis ensures that there is an awareness and understandand personality assessments to support small and family ing of the value that each employee adds to the businesses. Since 2008, he has been providing traincustomers experience. ing regarding understanding others personalities, dealing Perception: When asked the customer should with conflict, communication strategies and child develrespond that working with your company is an opment. extremely positive experience. Parts are not only Robert Counts 512 653 6915 as described, clean and on time, but the staff are www.countsbusinessconsulting.com knowledgeable, proactive and an asset to their busiFacebook – Counts Business Consulting ness. Beyond this your company needs to be innovative in researching what they can provide and/ or do that is needed by their customer base. Your July/August 2011 10 ASSOCIATION NEWS TARA BULLETIN AIR CHECK UPDATE REMINDER IMPORTANT NOTICE TO ALL PARTICIPATING DISMANTLERS IN THE AIRCHECKTEXAS DACM PROGRAM: Effective in February 1, 2011, the Texas Commission on Environmental Quality (TCEQ) required a 6-month timeline for the transfer of AirCheckTexas Drive a Clean Machine (DACM) retired vehicles from the dismantler to the recycler. The requirement to transfer the retired vehicle to a participating recycler within 6 months of receipt is necessary to ensure retired vehicles are being destroyed and recycled in a timely manner. Any AirCheckTexas DACM vehicles already in inventory must be transferred to a participating recycler by July 31, 2011. Requirements: 1. Participating dismantlers will continue to receive and process retired vehicles from participating dealers as they have previously. 2. Participating dismantlers will have 6 months from the date of receipt noted on the Transfer Manifest form to ensure the retired vehicle is transferred to an AirCheckTexas DACM participating recycler. 3. Contact a participating recycler to make arrangements for transport/transfer to a participating recycling facility. (List of participating recyclers below) 4. The white copy of the Retired Vehicle Transfer Manifest should now be mailed to your local program administrator. The green copy of the Transfer Manifest will continue to be mailed to the auto dealership. If you have questions, please call your local program administrator or TCEQ staff at: North Central Texas Council of Governments (800) 898-9103 or (817) 608-2315 Houston-Galveston Area Council (866) 237-9392 or (832) 681-2527 Travis County (512) 267-0301 or (512) 854-7205 or (512) 854-1281 Williamson County (800) 978-1766 or (512) 260-4227 TCEQ (512) 239-2988 or (512) 239-1406 Participating Steel Metal Recyclers Border Steel Inc. (El Paso) IH-10 and Vinton Rd. Vinton, TX 79835 915-886-2000 Commercial Metals 4614 Agnes St Corpus Christi TX 78405 361-884-4071 Commercial Metals Corporation 1 Steel Mill Dr Seguin TX 78155 830-372-8819 Commercial Metals – Liberty 1729 NW Westmoreland Dallas TX 75212 214-637-3326 July/August 2011 11 ASSOCIATION NEWS Gerdau Ameristeel Midlothian Steel Mill 300 Ward Rd Midlothian TX 76065 972-779-1082 Gerdau Ameristeel 100 Old Hwy 90 W Vidor TX 77662 409-766-1904 (accepts only shredded recycled material) Letourneau Technologies Steel Group 2400 S. MacArthur Longview, TX 75602 903-2366565 Nucor Steel 8812 Hwy 79 W Jewett TX 75846 903-626-4461 (accepts only shredded recycled material) Texas Port Recycling – Conroe Facility 11895 Douget Rd. Conroe, Texas 77303 936-788-5252 Texas Port Recycling- Manchester Facility 8945 Manchester St. Houston, Texas 77012 713-921-5549 Texas Port Recycling— Pinemont Facility 4400 Pinemont Ave Houston, TX 77018 713-686-5549 July/August 2011 12 ASSOCIATION NEWS TARA Looses Two Outstanding Members Mark Hardy October 14, 1961 April 18, 2011 Mark Andrew Hardy, 49, of Burnet, Texas died peacefully at his home on April 18, 2011 after a yearlong battle with cancer. Mark was born at Bergstrom Air Force Base in Austin, Texas on March 30, 1962. He married Karen Culp in 1983 and they were blessed with a beautiful daughter, Sharon Hardy. He moved to Burnet in 1993 when he became the proprietor of Burnet Auto Salvage. He worked hard to build a successful business and was President of the Kolt line as well as an active board member of the Texas Automobile Recycling Association. Mark enjoyed remodeling homes, spending time with his dogs and anything related to Germany, where he lived for five happy years during his childhood. Mark was preceded in death by his father, Roy Hardy. He is survived by his wife of 27 years, Karen Hardy; daughter, Sharon Lynn Hardy; parents Janet and George Knapik of Austin; sister Janet Jones of Norman, Oklahoma; brother Phillip Hardy of Austin; sister Gail Hardy and her husband, Wes Short of Austin; and sister Lisa Hardy of Austin. He is also survived by several nieces and other family members. The family wishes to thank Keith Nelson for keeping everything going for us at the shop during the past year; all their neighbors on “the hill” for everything they have done to help while we were away at MD Anderson. They would also like to thank the employees of the Texas Attorney General’s Office for the blood drive for Mark and for helping keep Karen afloat during this difficult time. ... Mark Andrew Hardy, 49, of Burnet, Texas died peacefully at his home on April 18, 2011 after a yearlong battle with cancer. Mark was born at Bergstrom Air Force Base in Austin, Texas on March 30, 1962. He married Karen Culp in 1983 and they were blessed with a beautiful daughter, Sharon Hardy. He moved to Burnet in 1993 when he became the proprietor of Burnet Auto Salvage. He worked hard to build a successful business and was President of the Kolt line as well as an active board member of the Texas Automobile Recycling Association. Mark enjoyed remodeling homes, spending time with his dogs and anything related to Germany, where he lived for five happy years during his childhood. Mark was preceded in death by his father, Roy Hardy. He is survived by his wife of 27 years, Karen Hardy; daughter, Sharon Lynn Hardy; parents Janet and George Knapik of Austin; sister Janet Jones of Norman, Oklahoma; brother Phillip Hardy of Austin; sister Gail Hardy and her husband, Wes Short of Austin; and sister Lisa Hardy of Austin. He is also survived by several nieces and other family members. The family wishes to thank Keith Nelson for keeping everything going for us at the shop during the past year; all their neighbors on “the hill” for everything they have done to help while we were away at MD Anderson. They would also like to thank the employees of the Texas Attorney General’s Office for the blood drive for Mark and for July/August 2011 13 ASSOCIATION NEWS helping keep Karen afloat during this difficult time. Visitation will be held on Thursday, April 21, at noon at Clements-Wilcox Funeral Home in Marble Falls, Texas. Funeral services will begin at 2:00 p.m. after visitation. Interment will follow at Lakeland Hills Memorial Park. Pallbearers are Danny Arredondo, Mark Fish, Danny Grimes, Phillip Hardy, Pat Moran and Bruce Ormand. Norman Dulaney December 15, 1917 - May 21, 2011 Norman Dulaney, 93, of Plainview passed away on Saturday, May 21, 2011, in Plainview. Funeral services will be held at 2:00 P.M., Wednesday, May 25, 2011, at Kornerstone Funeral Directors Chapel with Rev. Gary Smith of Spearman officiating. Burial will follow at Plainview Memorial Park. Arrangements are under the care of Kornerstone Funeral Directors of Plainview. Norman was born on December 15, 1917 in Abilene, Texas to Chris and Myrtle (Norman) Dulaney. He grew up near Abilene and moved to Lubbock as a teenager. He worked as a station master for Santa Fe Railroad in Levelland for several years before serving his country as a Master Sergeant during World War II. He married Oleta Mangum on June 23, 1937 in Plainview. In 1947 he established his own auto salvage and recycling business. He owned and operated Dulaney’s in Plainview and Amarillo for more than sixty years. He was active in honoring our veterans by helping supply the flags for their graves. He was honored as Plainview’s Man of the Year in 2009. He helped organize the Texas Automotive Recyclers Association and served as the president in 1967. He also served as president of the International Automotive Recyclers Associa- tion from 1969-70. Norman was preceded in death by his wife, Oleta on March 5, 2000; and one brother, Ned Dulaney. He is survived by his daughter, Linda Pitman and her husband Gayland of Canyon, Texas; and one sister, Pat Burton of Groves, Texas. Memorial contributions may be made to the American Heart Association, 2514 82nd St., Lubbock, Texas 79423 or to the Automotive Recyclers Association Scholarship Foundation, 9113 Church St., Manassas, VA 20110-5456 Thank You From Dulaney Family I would like to thank everyone in TARA for the calls, cards, donations, and flowers sent on Normans passing. The Association meant a lot to him and our family sincerely appreciates all that was done in his honor. Thank you, Linda Pitman Has your company or any employees received any kind of special civic commendation or award, have you made any changes to your business or do you have news or announcements etc. - let us know! Email ([email protected]) Fax (713-461-1515) or Phone (800-710-8272) July/August 2011 15 ASSOCIATION NEWS How Understanding Repair Shops Can Sell More Parts By Shawn Collins If you haven’t noticed yet, things have changed in both the recycled parts industry and the collision repair industry. If you’ve been paying close attention, you know that the collision repair industry has radically changed in just the past five years. The new focus on cycle time, lean manufacturing methods, and standard operating procedures has vastly increased the efficiency of many shops. If you intend to maximize the number of parts you are selling, you need to cater to the needs of the collision shops in your market with equal efficiency. It would also be wise to focus on the large multiple shop organizations (MSOs) and the shops that have direct repair agreements with the insurance companies. These shops, commonly referred to as Class A shops, will typically be highly professional, well-organized shops that produce a large volume of work in an efficient, streamlined manner. The challenge for recyclers who wish to do business with these shops will be matching their degree of professionalism and providing top quality services in an extremely efficient manner. This may not be for everybody. There are many recyclers who may just be content to operate the same way they have for decades, and that’s their personal business decision, but they will miss an opportunity to greatly improve their sales. Some yards simply may not have the infrastructure or personnel to provide these extraordinary services or be suited to provide them fast enough. Unfortunately, because recyclers trade inventory with each other, when a part is sourced from a yard that isn’t able to accommodate the needs of a Class A shop, it can make every yard involved in the transaction look incompetent. Know this, whether the insurance companies actually admit it or not, they frequently have some control over which vendors are used. This comes down to survival of the fittest. If a yard can’t provide quality parts quickly and manage returns and repair credits responsibly, the insurance companies will weed them out of their preferred vendor list. Many insurance companies are becoming increasingly aware that the lowest price isn’t always the driving factor when sourcing parts. They have come to realize that part quality, speed of delivery, and order accuracy are as important as price when cycle time and customer satisfaction are influencing insurance policy retention. If a recycler wants to satisfy this type of customer, they need to think like a collision repair shop. Trained for Efficiency A motivating factor in the improved efficiency of the collision shops is increased training. I-CAR (the Inter-Industry Conference on Auto Collision Repair) is the recognized training organization of the collision repair industry whose vision is that “every person in the collision industry, present and future, has the necessary knowledge and skills relevant to their position to perform a complete and safe repair.” They have recently launched two training classes that are intended to improve the performance of the shops through systemic organization and uniform processes. The “Overview of Cycle Time Improvements for 16 July/August 2011 ASSOCIATION NEWS the Collision repair Process” (CYC01) class emphasizes the importance of detailed standard operating procedures and demonstrates the benefits of the lean manufacturing processes similar to those used by Toyota to manufacture cars and trucks. The other class is “Recycled Parts for Collision Repair” (RCY01) that was designed to close the communication gap between the recyclers and the shops. This class focuses on communication strategies (understanding your customer) and provides the collision industry with an inside look at how a best-in-class recycler operates. This class is being presented at shops and recycling yards nationwide. I’ve had the opportunity to present this class at several yards and offered a condensed version of the class at the 2010 ARA Convention in Austin, Texas. As a result of this training and an increasingly enlightened collision repair industry, the shops have a better understanding of the recycling industry, resulting in higher expectations for their own operations as well as the operations for their business partners, which include the recyclers. Insurance Quotas a Plus ... and a Negative Recyclers must understand that collision shops are now under intense scrutiny by the insurance companies who track the key performance indicators that compare a shop’s performance to others in the industry. The term “key performance indicators” (KPI) refers to items such as average estimate cost (severity), cycle time or key-to-key (when the customer’s keys are collected until they are handed back), and alternative parts usage (APU). In order for a shop to remain in good standing with the insurance company and consequently remain on their direct repair program, the shop’s KPI must meet or exceed industry norms. The APU indicator is a benefit for the recycler because the shops are strongly encouraged to use a certain percentage of recycled parts to satisfy their insurance partner. A good shop manager can tell you, off the top of his head, what his APU percentage was for July/August 2011 17 ASSOCIATION NEWS the previous month or even year-to-date (13.3% recycled parts use is the current national average). If they neglect these performance measurements, they may be dropped from the direct repair program at renewal time, which could mean empty stalls and idle technicians in their shop. This creates a polarizing dynamic. The recyclers may benefit from the insurance companies requirement that the shop must use recycled parts, but simultaneously, the shops feel like they are being forced to use alternative parts where they may have preferred (or profited from) the use of OEM parts. This could make your customer unhappy before he even orders the parts from you, which will make it critically important for the recycler to provide high-quality parts free of burdensome drama. If they are coerced into using recycled parts and the process goes smoothly, all is forgiven. But, if the transaction turns into a nightmare because of poor-quality parts or slow service, things can get ugly fast. It’s very important to remember that your customer might be calling you for parts because they have to, not because they want to, and a wise recycler will be sensitive to this. In other words, put yourself in your customers’ place. Make it Fast, or Else Cycle time is a term that until recently, no one ever heard about or paid any attention to. This is another key performance indicator the insurance companies and collision shops watch intensely. Within some of the multi-location shop organizations there is fierce competition between its managers as to whose shop has the best cycle time. More importantly, the insurance companies know that this is one of the most important factors for customer satisfaction and in turn, policy renewal. They know that if a repair takes longer than two weeks to complete, the actuarial numbers show that the odds for retaining that customer in the future decrease. In the past, shops thought about receiving recycled parts in terms of days, now they think in terms ASSOCIATE MEMBERS American Cat Con, Inc. Car-Part.com Phone: (512) 295-4659 Phone: (859) 344-1925 American Cat Con, Inc. Donate A Car 2 Charity Phone: (713) 295-4659 Auction Systems of Amarillo Neely, Craig & Walton, LLP Phone: (806) 376-6301 Proler Crushing Phone: (877) 505-5775 Phone: (713) 226-8000 Eagle Auction Pool Rio Battery Company Phone: (210) 225-4746 Phone: (806) 622-1322 Phone: (409) 866-0700 Auto Data Direct, Inc. Eco Serve Environmental Phone: (822) 422-2425 Phone: (251) 767-1258 Bishop International Hollander, A Solera Company Texas Port Recycling Phone: 800-825-0644 Ext. 2449 Phone: (713) 921-5549 Brock Supply Co. James Environmental Management, Inc. Total Resource Auction Phone: (512) 244-3631 713-640-8351 Lamb Fuels, Inc. Waymer & Associates Phone: (512) 281-6867 Phone: (214) 426-6449 Phone: (800) 528-4400 Counts Business Consulting, LLC Phone: (512) 653-6915 Phone: (619) 421-0805 SW Engines Phone: (830) 620-5152 LKQ CORPORATION Government Affiars Phone: 954-492-9092 BE SURE TO CONSIDER OUR ASSOCIATE MEMBERS FIRST FOR YOUR BUSINESS NEEDS VISIT OUR WEBSITE FOR FULL CONTACT INFORMATION www.texasara.com July/August 2011 18 ASSOCIATION NEWS of hours. Insurance companies now track the hours it takes to begin the repairs, how quickly the estimate is uploaded, how many hours per day are actually spent working on that vehicle, and how many hours it takes for the shop to send in a supplement to the estimate for additional parts or labor. A recycler can fall out of favor quickly by delaying a repair because of poor or incorrect parts or delayed deliveries. The insurance companies use this information to place these shops into a tier, which will determine the volume of work they receive. This magnifies the importance of retaining skilled and thorough sales people and maintaining organized, efficient procedures during your inventory, dismantling, and delivery stages. This may also create the need for services that were never needed in the past, such as offering the shops the ability to track deliveries online. This is not your father’s salvage yard! Stay in the Game Efforts to satisfy our target customer should begin in the inventory department with meticulous inspection processes and accurate damage descriptions. It may be wise to hire inventory specialists who have past collision shop experience or at least send them out to an actual shop to talk with the estimators and technicians to learn first-hand what their expectations are. The I-CAR RCY01 class instructs the shops how to decipher the damage codes and how those codes can be used to make an informed decision when sourcing parts through an online search engine. Shops that are under unyielding time constraints must know the true condition of the parts they order, and you can expect the attentive shops to know if they are being misled with inaccurate damage descriptions. If they are told upfront that the part needs some work, they can plan ahead and structure the repair plan accordingly. But, if they are surprised with a damaged part, it can make you the villain and everything that goes wrong with that repair from that point forward, may be blamed on you. As we all know, you can send out 100 perfect parts in a row but you are only as good as your last delivery. The increased pressure on the shops to perform at a high level also makes a detail-conscious, quality control department both a necessity and an opportunity to go above and beyond for your customer. A properly trained quality control inspector should not only send out cleaned parts, he must also prevent parts that can cause returns or complaints from ever going onto a delivery truck. The I-CAR recycled parts class explains to the shops that recyclers must be inspecting parts to determine if they are an aftermarket part, whether it has been repainted, or if it has more than very minor corrosion. Most Class A shops will never accept delivery of parts in this condition, so it’s a waste of everybody’s time if you send them out. Again, this emphasizes the need to communicate with your customers and know exactly what their expectations are. It may be necessary for the quality control inspector to review the returned parts slips periodically to identify any patterns for returned parts from your larger customers. You may notice, for example, that a customer returns all parts with more than 2 units of damage or any parts that have been repainted. This information can be used to create a customer profile that will keep you from sending out parts that are certain to come right back, eliminating the wasted expense and avoiding the irritated customer. To fully appreciate the environment in which the collision shops operate, you need to know that their insurance partners are relentlessly expecting them to improve their efficiency even as they are required to take on more responsibilities of the repair process. In many cases the direct repair shops are required to perform a complete tear down and write one estimate to eliminate the possibility of finding additional parts or labor throughout the remaining repair. They may even be penalized or demoted a tier level for supplementing July/August 2011 19 ASSOCIATION NEWS an estimate beyond the original. They are required to rapidly complete the estimates, source the parts from multiple vendors, send documentation to the insurance companies, and periodically communicate with the customer. The increasingly complicated construction of the vehicles also has them spending valuable time scrambling to find the correct repair procedures from the carmakers. Many man-hours are now spent on this critical task, which was unheard of in the recent past. Depending on the insurance company, shops may also be responsible for evaluating and processing vehicles determined to be a total loss, which consumes valuable man hours. The better you understand your customer the easier it will be to please them and sell more parts. You will be well served to be sensitive to the time constraints of the estimators and parts managers and do everything possible to make their jobs easier or at the very least, not more difficult. Shops, like any other business, are operating as lean as they can, which inevitably causes them to follow the path of least resistance. Use your knowledge of how the shops think or get out there and open a line of communication with them and pave a smooth path of least resistance that leads them to your business. Shawn Collins is currently a Collision Industry Specialist for AAA Auto Salvage in Rosemount, Minnesota. He worked 26 years as an ASE Master and I-CAR Platinum Collision Technician. He has been an I-CAR instructor for 17 years, is qualified to instruct more than 40 programs, and received the I-CAR instructor of the year award in 2009. He has been an I-CAR pilot class instructor and a consultant for new class development. He has been a consultant/coach for VeriFacts Automotive Inc. for 4 years. He has served on advisory committees for AASP/MN and local Technical Colleges, is a consultant and spokesperson for ALLDATA Collision, and is a frequent speaker at industry events. Reprinted with permission from ARA 2011 Texas Auto Recyclers Expo & Tradeshow (Sponsored by Texas Automotive Recyclers Association) Sept 29 - Oct 1, 2011 The St. Anthony Wyndam Historical Hotel 300 East Travis St. • San Antonio, TX 78205 210-227-4392 Conference Registration Form Name:_______________________________________________________________________________ Company:____________________________________________________________________________ Address:______________________________________________________________________________ City: __________________________County:_________________ State:__________ ZIP Code:________ Telephone: ________________________________ E-Mail:_____________________________________ Sept 30 - Casino Night/Auction/Banquet 7:30 to 11:00 Dine & Gamble Win Great Prizes Includes Food-Bar-Casino Expo & Tradeshow Fees TARA Members $150.00 Non-Members $200.00 Includes Trade Show Friday & Saturday Thursday Rexeption-Lunch Friday & Saturday Friday Casino Night, Dinner & Auction Attendance at Saturday Tradeshow Only - $25.00 Pay at Door A room block has been reserved at The St. Anthony Call 21-227-4392 or got to www.wyndham.com/groupevents2011/satst_tara/main.wnt Room Rates: Sept 29 - Oct 1 - $109.00 per night (Discount rate goot until Aug. 30) (Mention TX Auto Recycler Expo & Trade Show) No. Registration for Conference______________ Card Type___________ No.___________________________ Exp__________ Verification Code_______ Signature:_________________________________________ Return to: TARA c/o Cheryll Lambright PO Box 842084 Houston,TX 77084-2084 TEL: 800-710-8272 • FAX:800-663-9036 [email protected] www.texasara.com July/August 2011 21 INDUSTRY NEWS National Motor Vehicle Title Information System Provides Crucial Support in Combating Vehicle-Related Crime Scope of the Problem Automobile fraud and theft negatively impact public safety and often result in tremendous financial loss to the public. Fraud involving vehicles is a profitable business for criminals and heavily burdens consumers. In 2009, nearly one million vehicles were stolen nationwide at an estimated value of $5.2 billion, according to the Uniform Crime Report, while consumers and insurance companies lost nearly $8 billion per year from auto theft, as reported by the National Insurance Crime Bureau. The Role of NMVTIS The Anti-Car Theft Act of 1992 established NMVTIS as a national information system enabling states and others to access automobile titling information. The U.S. Department of Justice (DOJ) has had responsibility for the oversight and operation of NMVTIS since 1996. As part of that role, DOJ’s Bureau of Justice Assistance (BJA) is responsible for enforcing civil fines on junk and salvage yards, towing operators, insurance carriers, and others who fail to report on a monthly basis, as required. Failure to report to NMVTIS is punishable by a civil penalty of $1,000 per violation; therefore, a failure to report 100 junk or salvage automobiles could result in a civil fine of up to $100,000. All fines collected under NMVTIS are turned over to the U.S. Treasury. Criminal investigations have shown that those involved in do- mestic auto theft enterprises often perpetrate violent crimes, such as homicide, drug trafficking, human trafficking, and terrorism. To help combat vehicle-related crime, the National Motor Vehicle Title Information System (NMVTIS) was created to promote information sharing among state Division of Motor Vehicles (DMVs) as well as federal, tribal, state and local law enforcement personnel. Operational since 2009, NMVTIS is the only national information system that requires junk and salvage industry reporting. The system is designed to protect consumers from fraud and unsafe vehicles and to prevent stolen vehicles from being resold. NMVTIS also assists law enforcement in deterring and preventing title fraud, Vehicle Identification Number (VIN) cloning, and other crimes. NMVTIS Enforcement Activities BJA provides the field with information on NMVTIS 22 July/August 2011 INDUSTRY NEWS reporting requirements, the methods for reporting, and the penalties for non-reporting. BJA is coordinating its efforts with the National Highway Traffic Safety Administration (NHTSA), the Federal Bureau of Investigation (FBI), and state and local law enforcement to identify and investigate NMVTIS reporting violations. Enforcement efforts include: • Outreach – BJA undertook a major NMVTIS education campaign with mass mailings for the junk/salvage/recycler and insurance industries. In 2010, over 20,000 letters were sent to NMVTIS reporting entities. This was followed by a targeted mailing to auto insurance underwriters across the country. BJA will continue these efforts, including targeted outreach to the towing and used automobile industries, and other sectors that process junk and salvage vehicles. Regardless of which industry a company may operate, if that company is in the business of owning or acquiring five or more junk or salvage vehicles per year for resale (in their entirety or for spare parts), rebuilding, restoration, or crushing, it is required to report to NMVTIS. • Site Visits – On-site inspections of junk/ salvage/recycler facilities have occurred in Delaware, Maryland, New Jersey, New York, Pennsylvania, and Virginia. In addition, BJA continues to coordinate with NHTSA inspectors from across the country to facilitate enforcement of NMVTIS reporting in all 50 states. • Office-based Monitoring – NMVTIS records are regularly monitored to identify nonreporting entities. This includes reviewing auction and insurance industry submissions to determine which businesses have not submitted timely reports. Once identified, nonreporting businesses are contacted by phone and a 30-day nonreporting notice is mailed. If the required NMVTIS entries are not made in a timely manner, civil penalties are pursued. To date, nonreporting notices have been sent to businesses in 30 states and these efforts resulted in approximately 100,000 additional vehicles being reported to NMVTIS. • Nonreporting Referrals – A nonreporting referral process has been developed to enable the general public to use the NMVTIS web site to send confidential e-mails concerning nonreporting companies. Referrals are reviewed and, if necessary, appropriate follow up enforcement actions taken. To date, BJA has over 100 active referrals in 23 states. Any member of the public, who wishes to notify DOJ of an entity that is not currently reporting, can email [email protected] and include “Non-reporting Referral” in the subject line of the message. For answers to general NMVTIS questions, please visit the NMVTIS web site and refer to the Frequently Asked Questions section at www.nmvtis.gov/nmvtis_ faq.html. The Department of Justice respectfully requests that if any individual or organization disseminates this article to members and interested parties, then the entire article should be provided. TARA Fighting for the Rights of Automotive Recyclers Since 1965 Date:___________________ PRIMARY Yard Name:________________________________________________________________________ Address:______________________________________________________________________________________________ City: ________________________________County:______________________ State:______________ ZIP Code:__________ Business Phone: ( )________________________________ FAX: ( )___________________________________ E-Mail: _____________________________________________Web site: __________________________________________ Company Owner/Manager: ____________________________________Title: _____________________________________ TDLR Used Auto Parts Recycler’s License No: _________________________________________ Expiration: ____________ TCEQ Storm Water Permit Number: ______________________________________________________________________ Specify Company Type: r Sole Proprietorship r Partnership/Type__________________________ r Corporation/Type_______________ r Other/Type____________________________ ADDITIONAL Yard Name:_____________________________________________________________________ Address: _____________________________________________________________________________________________ City: ________________________________County:______________________ State:______________ ZIP Code:__________ Business Phone: ( )________________________________ FAX: ( ) __________________________________ E-Mail: _____________________________________________ Web site: __________________________________________ Company Owner/Manager: ____________________________________Title: _____________________________________ TDLR Used Auto Parts Recycler’s License No.: _________________________________________ Expiration: ____________ TCEQ Storm Water Permit Number: ________________________________________________________________ Please indicate category below: r Direct Primary Member $300.00 per year r Associate Member $300.00 per year r Additional Yard(s) $100.00 per yard/per year Please attach information for all additional yards Payment Information r Check Enclosed (payable to TARA) r Master Card r Visa r Automatic Monthly Credit Card Payment: $25.00 per month r Discover r American Express Please complete automatic authorization form if paying by credit card (Charges will continue on a monthly basis and membership will automatically renew on February 1 of each year, unless written notice of cancellation is received by January 1 of each year.) Card # _____________________________________ Verification Code:______________Expiration Date:_______________ PRINT Name of Cardholder:____________________________________________________________________________ Signature of Cardholder:________________________________________________________________________________ I pledge that my company will do everything in its power to comply with all laws and regulations regarding the automotive and dismantling industry. If there is a law or regulation that is unjust, I will work with TARA and within the system to correct it. I will operate my business to make a profit. I will treat the public fairly in all dealings. I will work diligently to improve the image of the automotive dismantling industry and support fellow recyclers and TARA efforts. I understand and agree that this membership is not transferable, and any association sign, emblem or other insignia issued to me is done so on a lease basis while a member is in good standing. The undersigned hereby applies for membership in the Texas Automotive Recyclers Association and agrees to be bound by its bylaws accordingly. By-Laws are available at www.texasara.com Signature: ________________________________________________________________Date:_____________________ Title:____________________________________________________________________ MEMBERSHIP APPLICATION For Texas Automotive Recyclers Association (PLEASE PRINT) Return to: TARA c/o Cheryll Lambright PO Box 842084 Houston,TX 77084-2084 TEL: 800-710-8272 • FAX:800-663-9036 July/August 2011 24 INDUSTRY NEWS ARA to Meet with EPA to Discuss the Sale of Catalytic Converters On August 5, 1986, the Environmental Protection Agency (EPA) published a notice of proposed enforcement policy on the sale and use of aftermarket catalytic converters, including recycled converters. The notice prohibits the resale or installation of a recycled converter unless the converter has been bench tested. EPA considers it a violation of the policy to install a used converter from a salvage yard or sell it for reuse unless it has been properly tested and labeled. Similarly it is a violation to install an un- ASA ASL tested used converter brought in by a customer, even if the customer insists that the used converter came off his vehicle. The costs of bench testing the converters have never really been an option for recyclers. ARA staff plans to meet with EPA staff to see if any other tests have been developed in the last 25 years that are viable and allow recyclers to cost-effectively test the converters and offer them for sale to customers. Reprinted with permission from ARA Amarillo Lubbock ASW Texas Salvage Pools Wichita Falls ASP Abilene Providing quality services to both buyers and sellers since 1978. Lubbock - ASL Amarillo - ASP Phone: 806-622-1322 Phone: 806-744-1922 Address: 4415 Idalou Rd Lubbock, TX 79403 Website: www.texassalvageepools.com Abilene - ASA Phone: 325-675-0699 Address: 7700 US Hwy 277 Abilene, TX 79601 Website: www.texassalvageepools.com Address: 11150 FM 1541 Amarillo, TX 79118 Website: www.texassalvageepools.com Wichita Falls - ASW Phone: 940-723-7416 Address: 3119 Windthorst Rd Wichita Falls, TX 76310 Website: www.texassalvageepools.com Live & Real Time Internet Auctions! Acctions Held Every Monday and Thursday at 10am See Website for Complete List or Call Any Location For More Information July/August 2011 25 INDUSTRY NEWS Capitol Connection - Right to Repair By Elizabeth Vermette Representative Edolphus ‘Ed’ Towns (D-NY) recently re-introduced Right to Repair legislation. The Right to Repair Act: • Requires vehicle manufacturers to provide the same service information and tools capabilities to independent shops that they offer to their franchised dealer network to repair and maintain late model computer controlled vehicle systems, • Restores the right of consumers to have their vehicle serviced and maintained at the repair facility of their choice; and, • Authorizes the Federal Trade Commission to enforce requirements in order to protect consumers and to promote competition in auto maintenance and repair. By allowing access to this information and giving motor vehicle owners the right to choose how and where their vehicles are repaired, small and independent businesses will be better able to compete in today’s marketplace. Motor vehicle owners will be able to exercise their right to have their vehicles repaired by someone they choose. The adoption of this bill will allow independent repair facilities to compete in a level playing field and foster healthy, fair competition. This legislation gives consumers in the United States alternatives to repair their vehicles and guarantees access to cost effective recycled auto parts. ARA supports the legislation and is currently working to secure House cosponsors for the bill. Reprinted with permission from ARA How To Perform Visual Wet Weather Observations (VWWO) by Matt Knight The Visual Wet Weather Observation is the simplest, yet most commonly overlooked aspect to compliance with most states’ general storm water permit. Aside from the unpleasant fact of having to go out into the rain to do it, it is a very simple and quick procedure, especially if you are a James Environmental customer. You can document the observations in any way that you like, in a notebook with a pencil, on the computer, or on the convenient forms located in your JEM Storm Water Plan, but however you choose to document your observations, the following criteria must be recorded. 1. Business Name 2. Location – City, State 3. Inspector Name 4. Time and Date of Observation 5. Inches of rain fallen 6. Time since last measurable rain 7. Observations 8. Potential Sources 9. Corrective Actions Basically, all you have to do is scoop up a cup of storm water discharge from your outfall in a clear July/August 2011 26 INDUSTRY NEWS container and describe what you see and smell. If you notice that your discharge smells like gasoline, or is excessively cloudy (Observation), you must explain why you believe that it smells or appears that way (Potential Sources), and what you intend to do about it (Corrective Actions). This observation allows you to quickly identify problems associated with your storm water discharge and correct the issues as soon as possible. If you are required to collect storm water samples for analytical monitoring, there is no better time to perform one of your VWWOs. If you are regularly performing your VWWOs, you are much more likely to remember to collect your analytical samples. If you have any questions about how to complete the VWWO, please watch the instructional video located on the resources tab of the James Environmental Management website, or call our office for more information. Reprinted with permission from James Environmental Management, Inc. TARA RAFFLE 1ST PRIZE 300 WEATHERBY MARK V DELUXE w/walnut stock and SWAROVSKI 4x12x50 SCOPE 2ND PRIZE BERETTA EXTREMA II SHOTGUN 12 GUAGE MAX 4 CAMO w/kickoff pad 3RD PRIZE GLOCK GEN 3 MOD 22 or 23 .40 S&W 4TH PRIZE SAVAGE 93R17 .17 HMR RIFLE MOSSY OAK CAMO W/SCOPE UP TO FOUR CHANCES TO WIN!!!!!!! $50 PER TICKET Call 800-710-8272 or 713-688-8905 or email: [email protected] NEED NOT BE PRSENT TO WIN Drawing will be on Oct 1, 2011 at the Texas Auto Recyclers Expo & Tradeshow, San Antonio, TX WINNER QUALIFICATIONS: Must be 21 years of age or older, have Valid ID, qualify to own a firearm according to ATF regulations and be able to personally complete ATF Registration paperwork at time of delivery at Black Gold Guns & Ammo, Houston, Texas or shipped to a licensed FFL dealer of your choice. Shipping costs paid by TARA. All FFL paperwork applies. DISCLAIMER: NO Raffle host personnel are responsible for winner’s misuse or careless handling of prize item. TARA0511 The Texas Automotive Recycling Report c/o RJ McClellan, Inc. 445 Broadway Avenue #5 St. Paul Park, MN 55071 Change Service Requested PRESORTED STANDARD U.S. POSTAGE PAID St. Paul, MN Permit No. 7911
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