NACE chairman calls for industry to coalesce
NACE Chairman Darrell Amberson of Lehman's Garage in Bloomington, Minn., welcomed attendees during the Opening General Session by noting that "NACE has helped take care of our businesses for 25 years."  He also recognized the handful of companies and individuals that have participated for all 25 years.

Amberson said the industry is facing a series of trends that are leading to fewer repairs, including a declining number of claims, which he attributed in part to vehicle owners being afraid of being dropped by insurers or having their rates increased.  In addition, he said the number of leased vehicles has dropped, vehicles that typically had to be repaired before they were turned in at the end of the lease.

As technology has increased the cost of repairs, it is becoming more important that the industry, through ASA and other associations, work with manufacturers to improve reparability in order to hold down cost and decrease the number of vehicles totaled, Amberson said.

"Increased efficiency has lead to overcapacity," he said.  "This has left us in a weak negotiating position."
 Amberson said that weak position has been abused by some insurers who have refused to pay for certain things necessary to return the vehicle to pre-accident condition.

Amberson said that to overcome this, the industry needs to come together to ensure that it is getting reimbursed for the work it is performing. 

 
"I call on the industry to develop a better long-term solution to our estimating model," he said.

An excellent first step has been the formation of the Database Enhancement Gateway (DEG) by ASA, AASP, and SCRS, Amberson said.  The DEG is an initiative that enables those who use collision repair estimating databases to provide feedback to the information providers in an effort to promote data accuracy.  Information is available at www.degweb.com.

"We need to make an effort to come together as one voice," Amberson said.

"Everything will focus on our working smarter and faster," he said.  "I firmly believe that with so many, we can accomplish so much."

A voice of hope
The keynote speaker for the Opening General Session was Chris Gardner, whose life story was portrayed in the movie "The Pursuit of Happyness" starring Will Smith.

Gardner related the moving story of how, while trying to get started in a new career, he became homeless with a young son.

He noted that an estimated 12 percent of the nation's homeless hold down full-time jobs and that in some communities, that is as high as 30 percent.

Gardner relayed his story of living in hotels and shelters and, on some nights, in the bathroom of a Bay Area Regional Transportation system bathroom for about a year as he regained his financial footing.  He said that because he had not met his father until in his late 20s, he had sworn that his son would know who he was.

Gardner has since become a successful businessman and now runs his own investment firm.

A focus on "lean"
This year's popular Friday Panel Talk was "De-Mystifying 'Lean' -- Creating Process Centered Environments."  The seminar focused on a general understanding of the improvements that can be made to a collision repair business by applying lean-manufacturing techniques.

The program was introduced by Gary Steele of Muradi LLP, who noted that the term "lean manufacturing" has "generally been devalued by inappropriate use."

The tenets of lean generally include putting the customer first and removing wasteful activity, Steele said.  "Removing waste from the process is not enough, though," he said.  "You don't just remove the waste but you also look for the root cause and fix it.  It's continual improvement.

"It's a way of life, a mindset, a way of being," he said.  "It can never be described in the past tense.  It's about today and tomorrow."

Lean thinking was demonstrated through a skit with three shop owners having drinks in a bar run by a bar owner who pays little attention to his customers, his service, or the condition of his facility.