Review

2003 National Auto Glass Conference & EXPO Marks All-Time Attendance High

Over 1,000 attendees, from auto-glass dealers and retailers to manufacturers and insurance officials, plus representatives of more than 50 suppliers met in Scottsdale, AZ, Sept. 10-13 during the National Auto Glass Conference & EXPO sponsored by the National Glass Association of McLean, VA. The attendance marks an all-time high for the event.

Auto-glass personnel from 20 nations participated in discussions covering a range of topics, including industry standards, state legislation requiring licenses for installers, and billings and collections.

Highlights:
NGA Chairman Chris Tate Promotes Standards
Dale Malcolm Honored With NGA's Len Stolk Special Achievement Award
AGRSS Committee Outlines Goals and Strategy
Briefs: Association Goals, Product Identification Standards, Adhesives, Used Glass, Corrosion, Windshield Prototypes, Business Practices, Succession Planning, Short Pays
Demonstration: 2003 Chevrolet Corvette
NGA Launches Business-Accreditation Program

Breaking News:
Apogee Enterprises to Sell Harmon AutoGlass Operations
Glas-Weld Systems, Inc. Promotes Mike Boyle to President

NGA Chairman Chris Tate Promotes Standards

• NGA Chairman Chris Tate, vice president of sales for Old Dominion Glass in Richmond, VA, voiced support for the National Auto Glass Specifications' design of a "fair and sensible model for the industry, while the entry of foreign glass has reshaped market dynamics nationwide." San Diego-based NAGS' proposal would require auto-glass shops to charge fees for labor.

He lauded the American National Standards Institute's Auto Glass Replacement Safety Standard and NGA certification. The latter has given credentials to 16,000 installers since its inception. At the same time, he complained about lack of support for certification from insurers who constitute installers' number-one customer.

"With the notable exception of the Farmer's Insurance Group of Los Angeles, which supported certification from the outset, no other national insurance company has ever expressed public support for what our industry association is trying to do," he noted. "Although they have told us repeatedly that they stand for quality workmanship and for customer safety, regrettably, all we have been able to observe has been a relentless desire for lower prices."

As a result, the association will introduce legislation to require licensing of auto-glass installers in nine states—California, Florida, Kentucky, New York, Ohio, South Carolina, Tennessee, Texas and Virginia during the coming months, "and other states will follow," he predicted.

Connecticut recently put such a law on the books for glaziers and auto-glass installers alike, and North Carolina legislators introduced such legislation last year. Leo Cyr, NGA's recently appointed vice president of auto glass, will supervise the project.

Tate described innovations within NGA's certification program that permit certified installers to work for continuing-education credit as an alternative to taking an exam every three years. In-shop education programs, association events and self-study qualify for credit. The move will "reduce costs to glass-shop owners while increasing the value of certification."

Meanwhile NGA's Auto Glass Technical Institute has been made part of school curriculums in Anoka Technical College in Minneapolis and schools in Ohio, Texas and Wisconsin. Each holds an average of four AGTI programs a year.

"NGA's shop-accreditation program has also received significant support from government agencies and state legislators, mostly as a result of increased pressure from consumers, who are demanding more accountability from service providers." Tate warned, "Aggressive consumer protection legislation has led to expanded fear of liability among those of us that provide vital services such as windshield replacement. More customers want to know that the shop they choose has employees who value education and understand the importance of safety.

"Together, we need to support the best practices that our association stands for."

Dale Malcolm Honored With NGA's Len Stolk Special Achievement Award

• Dale Malcolm of Dow Automotive Aftermarket received the Len Stolk Special Achievement Award presented during the Opening Session.

NGA's Special Achievement Award was renamed this year to the Len Stolk Special Achievement Award in honor of Len Stolk, who passed away in 1999. Stolk was well-known for his commitment to auto glass safety and highly regarded by his industry peers. The award is presented to recognize individuals in the glass industry who have made a significant contribution to the goals and objectives of the NGA.

A 25-year veteran of the industry, Malcolm is actively involved in many industry-related activities. He currently serves as Chairperson of NGA's Auto Glass Certification Committee, is a member of NGA's Auto Glass Certification Council, and is a member of the AGRSS Speaker Bureau. Malcolm is a frequent contributor to industry trade magazines and presenter at industry events.

AGRSS Committee Outlines Goals and Strategy

• Seeking to rev up acceptance of the Automotive Glass Replacement Safety Standard, members involved in the effort have outlined a multi-pronged campaign to register more auto-glass shops, to get more insurance companies to recognize and use the standard, and to make consumers aware of the standard and the importance of safe installations.

  On the first point, Cindy Minion Ketcherside, owner of JC's Glass in Phoenix and chairperson of the AGRSS Council, emphasized that the industry has to see itself as being in the safety business not the glass business. That, she explained, was the intent in developing the standard and it will be key for acceptance by the other two targeted groups.

Ketcherside reported that 160 auto-glass organizations with 643 branches had registered to indicate compliance with AGRSS. Companies register rather than individuals, as AGRSS is a standard that companies meet and not a certification that a technician achieves. The Council's goal is to have 1,200 registrants next year and 2,400 in 2005.

Calling on attendees to support the AGRSS Council and its work financially, Ketcherside outlined a series of strategic goals ranging from education and training to self-audits that registrants will be asked to complete during 2004, a process that includes appointment of in-house auditors. Committee members propose implementing independent third-party audits in the future.

Registration is the source for much of the financial support that the group will need to expand its efforts. Currently, AGRSS funding comes mainly from affiliated members, and other expenses are handled by volunteers. Projected growth and professionalism will need a more stable stream of income, Council members explained.

In a bit of a chicken and egg situation, members of the committee also emphasized how insurance companies are more likely to embrace the standard if consumers do so. As one insurance industry attendee, Dana Adams of Pemco in Seattle, explained during a question and answer session, "Consumer education is the key because if they want it then the insurance companies will give it."

And gaining acceptance is a true industry effort. One of the NGA's primary goals is to take the AGRSS standard national, Leo Cyr, the new vice president of auto glass for NGA, told the committee members at the AGRSS meeting held in Scottsdale before the National Auto Glass Conference & EXPO.

The ANSI/AGRSS 002-2002 Auto Glass Replacement Safety Standard is the first and only international standard detailing the steps and procedures installers should take to ensure a safe auto-glass replacement.

It explains what steps should be followed for a safe replacement and also sets up procedures for handling problem installations. It was developed by a group of auto-glass industry professionals under the auspices of the Auto Glass Replacement Safety Standards Council Inc. The entire development process followed the procedure of the American National Standards Institute.

Briefs: Association Goals, Product Identification Standards, Adhesives, Used Glass, Corrosion, Windshield Prototypes, Business Practices, Succession Planning, Short Pays

• "We are part of an industry in crisis," said Leo Cyr, newly appointed NGA vice president of auto glass. "We are having growing pains." Cyr argued that auto glass is growing into a technically sophisticated industry, but it has lost track of how to improve itself. "We have to take responsibility," he said. "We are entrusted with the lives and safety of our customers, even as we tolerate a legion of unlicensed practitioners that make a mockery of our profession and confuse and mislead the public. We need to define the practice. Meanwhile, our compensation has not kept pace with the time, expertise or level of service required. And our insurance customers remain unconcerned. We must go to consumers and tell them that all auto-glass replacements are not the same, help them identify the difference between good and bad service and the risk incurred in making uninformed choices. We have a right to demand fees equal to those for similar services. Suppliers are not responsible for profitability. We have to gain control by educating customers." NGA leaders propose a three-pronged approach including state licensing for installers that will "force people to raise professional standards or get out of the business;" support for the American National Standards Institute's Auto-Glass Replacement Safety Standard, and professional and business certification; and public education through organizations with like-minded, public-safety oriented constituencies such as the American Automobile Association.

• Also up for discussion: Re-activation of the Product Identification Standards subcommittee in light of industry pressure to improve existing bar-code systems that label glass parts so that purchasers can trace glass parts and other installation items back to the manufacturers. According to NGA President Phil James, who attended the subcommittee meeting, PIDS subcommittee members will focus only on a possible expansion of the existing bar-code system, and will not include any discussion of an alternative auto-glass numbering system. As in the past, and following association procedures, the subcommittee will take its recommendations to the Auto Glass Committee for review. From there, the recommendations will be included in the Auto Glass Committee's report to the NGA Board at its next meeting Oct. 24 in Washington, D.C.

• A panel of representatives from adhesive manufacturers outlined innovations in these products including:
  1. Formulations with faster drive-away times.
  2. Cleaners to eliminate so-called "nontraditional" contamination.
  3. Formulations to permit installations in colder weather
  4. Improved packaging that reduces technicians' exposure to strong chemicals.

"How fast is too fast?" asked Paul Schulte, director of automotive sales at Shat-R-Proof Corp. in South Bloomington, MN. "With products that cure quickly, installers must move differently."

• Meeting prior to the Scottsdale conference, the Automobile Glass Replacement Safety Standard Committee issued an interpretation of "used glass" in response to an installers' question about whether re-installations fulfill the intent of the standard. Committee member Carl Tompkins, Western district manager for Sika Corp., in Spokane, WA, said re-use hinges on whether said installer knows the origin of the glass component to be installed. If a windshield, for instance, is of unknown origin, the installer can not be sure that it had been stored correctly and emerged undamaged, so such "used glass" does not comply with the standard. In contrast, if an installer removes a windshield intact and re-installs it on the same vehicle, such use would comply with the standard, Tompkins said.

• "If everyone stopped causing scratches, and treated those that did occur, corrosion probably would work itself out in thee or four years," advised Dale Malcolm, technical services supervisor with Dow Automotive Aftermarket in Dayton, OH. Malcolm and Mark Rizzi, owner of ACR Glass in Alliance, NE, led a seminar on corrosion treatment that was heavily attended by glass-shop owners interested in providing this service to customers. And a digital camera has become part of the "price of admission" into the business, the speakers warned. Photos of corrosion, treatment and primed surfaces, pre- and post- inspection forms and other documentation prove to customers that the work was necessary and completed in a satisfactory manner.

• A panel of technical gurus from Guardian Industries Corp. in Carleton, MI; Pilkington in Toledo; PPG Industries in Pittsburgh; and Visteon Corp. in Allen Park, MI; described innovations in auto glass coming from Europe, some in prototype and a few still on the drawing board.
  European imports included larger windshields with double curves, some "breaking the laws of physics," others melding with roofs; single-stroke wipers with an edge at the bottom, a tool requiring very smooth glass surfaces; solar-control windshields, laminated sidelights and rain sensors. Innovations being introduced in prototypes included models with glass panels that seal against each other, hydrophobic glass, new kinds of tinted glass; infrared glazing; sliding rear window systems; flush-opening glass; complex backlights with "J" or "S" bends; "heated" windshields that defrost in three or five minutes; and more electronic functions built into glass parts. Emerging technologies might include ultraviolet control, switchable glass that permits various levels of light to come through, self-cleaning and sound-control glass and even use of plastic windows.

• Carl F. Tompkins, Western states area manager for Sika Corp. in Spokane, urged auto-glass shop owners to choose the "value-added approach" to business--rather than merely competing on price. Low-cost providers gain business quickly but constantly run the risk of getting "knocked off," he warned. Building business based on the "added value" of quality services takes more time, but in an environment where glass-shop owners must gain the recognition of a few big customers-who focus intensely on invoices as a result of the down economy-installers must "help clients validate their value through proof of quality service," he said. Tompkins offered attendees a step-by-step marketing plan to identify the interests of buyers, meet their personal and professional needs, and provide them with such validation.

• Margery Engel Loeb, president of Loeb & Associates LLC in Victoria TX, asked her audience of about 75 family-owned businesspeople how many generations were represented in their companies. Roughly equal numbers have first and second generations working together, second and third generations working together, and second, third and fourth generations on board. No attendee has fifth-generation family members involved in their businesses. Loeb advised the group to begin succession planning immediately to balance the needs of the business, succeeding family members and present owners.

• Have "short pays" grown out of control? asked attorney Charles J. Lloyd of Livgard & Rabuse in Minneapolis. If so, look on your invoice: Does it say that payment constitutes a release? That the customer will be responsible? "If it does," he warned, "You are protecting the insurance company, not yourself." Lloyd advises auto-glass shop owners to eliminate the "old, outdated language" and "get the customer to sign an assignment of insurance proceeds, instead."

Demonstration: 2003 Chevrolet Corvette

• During a demonstration of auto-glass installation on a 2003 Chevrolet Corvette, Dale Malcolm, technical services supervisor for Dow Automotive in Dayton, OH, offered advice on dealing with glass contamination: "We have started to see it with many brands of glass," he said. "It requires treating every piece of glass with aggressive steps-not just when you see contamination."

He said some instances of contamination occur when encapsulated glass gets released from molds and some of the release agent doesn't stay on the mold. Cleaning steps might include a fine mist with an aerosol cleaner and a wet scrub with an abrasive pad, followed by more aerosol cleaner to remove residue from the pad.

Bob Beranek, president of Automotive Glass Consultants Inc. of Sun Prairie, WI, offered this tip: Try acdelcotechconnect.com. The subscription service isn't cheap, he admitted, so he collects a couple of weeks' worth of questions and then goes online to search for the answers all at once. The site boasts a key-word search function. Jay Beranek, lead installer at Bingswanger Glass in Scottsdale, AZ, also participated in the demonstration.

NGA Launches Business-Accreditation Program

• The National Glass Association launched a business-accreditation program at the conference. The information collected in this way will create a database of auto-glass shops with the following attributes: a physical business location and business type; verification of inventory and hours of operation; state and federal business licenses, business insurance; verification of U.S. Occupational Safety and Health Administration-approved or recognized safety program; NGA certified technicians and verification of skills; verification of management staff attending continuing-education courses; and on-site inspection. For more information, contact Heather Trusty, heather@glass.org.

Breaking News

• Apogee Enterprises is in discussions to sell its Harmon AutoGlass operations, which has been a money loser for the Minneapolis, MN, based company. Speculation is that Belron, the leading European auto-glass replacement company, plans to buy Harmon. Apogee hasn't named a suitor but reports that it has engaged a financial company to "aggressively" pursue the sell of the operation. The sell is expected to take place before next February. In response to a question of whether the prospective purchaser was Belron, an Apogee spokesperson replied, "We have talked with several firms dedicated to the auto replacement glass business but we currently are not in a position to disclose any names of potential buyers. Nothing is final at this point. We will announce the buyer when we have a purchase agreement."

"This anticipated transaction will allow Apogee management to increase our focus on opportunities in our architectural glass products and services, and picture framing glass businesses where we have solid market positions and greater opportunities for profitable growth," said Russell Huffer, Apogee chairman, president and chief executive officer. "We expect to make announcements related to our strategic refocus during the second half of fiscal 2004.

"Apogee's roots are in the retail auto glass business, which made significant contributions to the company in past years," he said. "But with the changes in market conditions, we believe Harmon AutoGlass is no longer a strategic fit for Apogee. Accordingly, we are aggressively pursuing the sale of Harmon AutoGlass to a buyer dedicated to the auto replacement glass industry, including auto glass insurance claims management. We believe Harmon AutoGlass can more effectively compete in a new ownership structure. We feel this will be a positive decision for Apogee and its shareholders, and for Harmon AutoGlass and its new owner, which will benefit from Harmon AutoGlass' industry-leading installation technicians and customer service."

To exit this business, Apogee expects to incur an after-tax charge of $6 million to $10 million, or $0.22 to $0.36 per share, during fiscal 2004 for the transaction, transition and related restructuring costs.

• Glas-Weld Systems Inc. of Bend, OR, has announced the promotion of Mike Boyle to president. Boyle previously served as director of sales and marketing for the manufacturer and marketer of glass restoration products. He will continue to oversee sales and marketing while assuming greater responsibility for management of the company. Rose Mackey has assumed position of secretary and treasurer. She will work closely with Boyle, focusing on the company's planning and growth. Dave Shores, formerly vice president and director of contracting, is no longer with the company.