By talking to folks and by reading forums, many of us have experienced a slowdown of sorts these past few months. Summer’s madcap driving habits have tapered off substantially to almost a drip making many of us feel like the legendary Maytag repairman.
We know the reasons: a return to school for families, high gas prices have people driving less, a slowdown of much of the nation’s economy due to those higher prices and others causes. People for the most part have less discretionary income to spend.
With that said, many of us have noticed a drying-up of insurance work. I do believe that many of the reasons cited earlier are applicable here. People have increased their deductibles to save money and, if they suffer a cracked windshield, it seems they are waiting longer, even postponing replacement indefinitely.
One much debated reason has to be expressed as well. I feel our nation’s largest replacement service and professional third-party administrator seemingly has increased its steering efforts to keep more business in-house. The gatekeeper has become a funnel in so many words, directing work back to itself.
Is this a surprise? Absolutely not! From the time this company was purchased by a South African glass corporation, the makeover from inept to adept has been a work in progress and for the most part it has been working. We may be viewing the birth of the very first nationally branded auto glass business and that has repercussions for us all.
I respect any business that can compete and expand. However, I feel this corporation has made so many deals with the devil allowing “unfair” growth that I feel it represents the greatest danger to date towards the national auto glass industry.
This is a company that Ralph Nader said “had an incestuous relationship with insurers.” With its glass production facilities and purchasing power, this corporation influences pricing and other market factors, not only with its client insurers but also with the general public. In a price war, it could easily win if it wishes to; however, the result could be a pyrrhic victory for both itself and the independents.
AGRR magazine did an excellent cover story a few months ago about what this international corporation did as they entered the Canadian market. These guys have a plan here in the USA and guess what? We are not in it!
Regional chains should be looking over their respective shoulders while single point stores will feel the trickle-down effects of lost business. With unity within our industry almost non-existent, if one doesn’t start to acknowledge what could happen if these guys are not challenged, local auto glass shops will suffer the same fate as did many retail stores within 50 miles of Wal-Mart.
In Greek mythology, there was a woman named Cassandra who was given the ability to see into the future. It was part of a curse afflicted upon her. The downside of her gift was that no one would believe her as she expressed her warnings. Not that I possess any prescient powers of my own, I just hope a many of you take heed.
Mr. Duffy’s opinions are solely his own and not necessarily those of this magazine.
