Winters also said that customer service is vital to any business now and in the future. "The goal (of any shop) is to send every customer away raving about you and your shop," he said. "We have a 'five-foot' rule where any employee that gets within five feet of a customer greets them in a friendly and professional manner.

"You have to walk the walk and talk the talk," he said. "People are not stupid; they know if you really care. We're in the business of helping people. Fixing cars is only part of the equation." He added that taking care of employees is paramount to the success of any business. "We need to take a personal interest in their well-being and let them know we care about them."

Mike West, co-owner of Southtowne Auto Rebuild in Tukwila, Wash., and a longtime industry activist on the local, state, and national levels, said the collision repair industry has plenty of challenges in 2008.

"The new EPA-VOC Paint Rule is effective in 2008," West said. "This levels the playing field and mandates paint booths, gun washers, and HVLP spraying equipment in order to do paint work. This is a blanket regulation that covers the entire United States."

As the chairman of Government Affairs Committee for the Automotive Service Association of Washington (ASA-WA), West said that on state levels, the industry needs to be aware of legislative issues. "On a state-by-state basis, look for bills on aftermarket parts, steering, insurer-owned shops, and corrupting or changing labor rate manuals and P-pages," he said.  "On the federal level, Congress may consider the repeal of the McCarran-Ferguson Act."

Direct Repair Programs (DRPs) for collision shops are an ongoing concern for most all auto body repair facilities. "As insurers get more and more competitive for market share, look for them to become more aggressive at streamlining the claims experience or reducing costs," West said. "More alternative parts, tight cycle times, control of the parts operation, shop total-loss evaluations, more third-party administration, reduction of published flat-rate times, paint material capping, and resistance to paying for some not-included items are all issues to look at in the year ahead with DRPs."

West said that with the new Certified Aftermarket Parts Association's (CAPA) certification of headlight assemblies, most quality insurers are mandating either a CAPA-certified headlight or OE unit. "If a repairer does otherwise, they assume all liability," he said.

"Our OE sheetmetal sales are down dramatically," said Ralph Allmand, parts and service director for Toyota of Seattle, adding that most collision repair shops prefer the fit and finish of OE quality parts. "There is more competition from aftermarket suppliers, and it seems like the consumer suffers when replacement parts like OE bumpers, fenders, and quarter panels are not replaced on vehicles based on insurance companies cutting costs on repairs."

"Tools and equipment are playing a larger and more important part of our daily repair needs," said Merle Pfeifer, AAM, CEO of Sparks Car Care in Federal Way, Wash., who has long been involved in local, state, and community affairs. "Tools and equipment are more sophisticated and expensive, and we have to update them more often; and the information to update them is also expensive," he said.

"Recently, I found that we will no longer be getting CDs through the mail for our Flash Burn updates," Pfeifer said. "We will only be able to get them over the Internet from manufacturer Web sites. Of course, this will be at a cost to each shop."

Pfeifer also said there are mounting problems for independent repairers in obtaining antitheft information. "Currently, we are locked out of several manufacturers, and those vehicles will need to be sent to dealers. Things are moving towards allowing us to get antitheft information, but it's slow in coming," he said, adding that he was just appointed by Gov. Christine Gregoire to the Washington Auto Theft Prevention Authority.

Other issues of interest to repairers, Pfeifer said, involve new types of motor oils, including those for the 7.3 Power Stroke diesels, as well as the newer power-steering and transmission fluids and coolants.

"While we are facing challenging times, I truly feel that through training, education, and offering superior service, we can prosper in our industry," he said.

"The biggest challenge for our members will be finding qualified technicians," said Jeff Lovell, AAM, president and executive director of ASA-WA. "Finding well-qualified technicians has been the challenge for many years. Some of the ways that we are working to alleviate the challenge is working with statewide vocational colleges to help promote ongoing training for industry professionals.

"Based on our mission statement to keep the industry updated on new technologies, we are offering the opportunity to attend the Automotive Training Expo in March where we bring in the top trainers from around North America to help keep technicians and owners updated on all current phases of the automotive industry," Lovell said.

"One additional challenge for our industry we will be seeing this year is factory-specific information and tools that are stretching the shop's training and equipment budgets to the point of breaking," he said. "Twenty years ago, one scanner and one source of information covered most of your needs, but that is not so today."

Jeff Hove, sales manager of the NAPA Distribution Center in Spokane, said his center's major focus for 2008 will be installer training. "In an effort to keep the installers up to date on the latest technology and changes in the automotive aftermarket, we will continue to offer our customers technical training through Auto Tech with our NIAT program," he said, adding that business training courses through ATI and Vin Waterhouse will continue to be offered to help independent repair facilities be more efficient and profitable.

"It is our fundamental belief that if we can help keep our primary customer on the leading edge of technology in a rapidly changing market, and keep them profitable at the same time, it will be a great benefit to us all in the long run," Hove said.

"With the current structure of vehicle warranties, the dealership has several years to establish a relationship with the car owner," said Bonnie Halvorson, marketing director for Portland-based Performance Warehouse and Baxter Auto Parts. "With dealerships getting better at service, value, and customer service, the question is, 'How do we convince the vehicle owner that we can do a better job at a better price and in a timely manner at the independent level?'"