View From The Trenches

I profess not to know my English literature as well as I should. However, the story lines of the decline and fall of Diamond could easily be found in a Shakespearian tragedy such as “King Lear” or “Hamlet.” The ending was more like “Much Ado About Nothing.” Allow me the chance to inform you and suggest what the Bard of Stratford could have written on the subject himself.

I’ll try to briefly summarize; we had in Diamond, the second largest installation company in the United States, a company notable for its discount pricing. (Some rise by sin or by virtue fall.) For some reason they took on a close to a $100 million in debt ten years ago that became due this year. While profitable, they cannot repay or refinance the loan. (Neither a borrower nor lender be.)

The only way to remove the debt was to enter bankruptcy and liquidate. I would bet a tube of urethane that Mr. Levine and cohorts had planned from the very start to enter bankruptcy and buy back the company, free of many of the obligations it existed under previously. (It’s a wise father that knows his own child.) Here is where it gets interesting. The assets of Diamond were at last exposed to view and to be bid upon, open to anyone with interest. Kingston had to expect that Belron would naturally investigate and bid on those assets. It would just be a matter of beating that bid and anyone else’s. (Nothing can come of nothing.)

The news came on June 20 that Mr. Levine’ s poker prowess was proven vulnerable. His group’s bid suspiciously fell only $100,000 short of the winning Belron number of $54 million. Conspiracy theorists may want to consult with corporate espionage experts to try to explain those circumstances. The gamble failed. The nation’s largest auto glass installation company was able to absorb its largest competitor for about three and half months worth of Diamond’s gross sales and do it without a national price war. (The most unkind cut of all.)

What will this mean for the rest of the industry? I know many independents have differing opinions. Predicting outcomes can be a very chancy activity. Crystal balls are not noted for their accuracy.

For the next year of so, Belron will be busy finding out what they bought at this corporate garage sale, which personnel they want to keep or let go and still operate their own core businesses. (Many a good hanging prevents a bad marriage.) You could even wonder if the naming of a new CEO at Safelite was related to the Diamond bid since the timing was so approximate. (There’s many a man with more hair than wit.)

Metaphorically speaking, one would have to think they might be a bit like a python that just swallowed a large animal and needs time for digestion. Once that process takes place, its appetite and attitude would be one that others will and should be wary of. This increase of market share and the removal of its largest rival will put Belron US in an enviable position of power and influence throughout the auto glass industry. (He’s mad that trusts the tameness of a wolf.)

One would bet another tube of urethane that the dismantling of Diamond and the national branding efforts of Safelite will go forward hand-in-hand. Columbus will merge or close overlapping branches along with re-naming those that give Safelite entrance into new markets. (What is in a name? That which we would call a rose by any other name would smell as sweet.)

Some view this acquisition as a good thing that may slow declining retail or insurance pricing with the removal of the Avis of our industry who tried very hard to gain market share through discounting. Time will tell but the Canadian history of Belron suggests otherwise. (Fishes live in the sea, as men do a-land, the great ones eat up the little ones.)

You would also have to believe that the industry would begin to see an influx of new start-ups shops or services created by those former Diamond and even Safelite employees shed by the new merger. From managers to installers there will be attempts to retain certain customers with whom they have had personal contact as they try to establish a new business presence. (Who steals my purse steals trash.)

Adhesive and moulding vendors, along with glass distributors, that called Diamond but not Safelite a customer will suffer declines in transactions in an already soft market. Sadly, many times, these start-up installation firms are gladly welcomed by these businesses trying to offset lost sales. The result just becomes an engorged market of providers that depress profitability for those already in business. (Hell is empty and all the devils are here.)

This acquisition even may very well affect PPG selling its auto glass section. If anyone wants to challenge Belron, they would certainly need the manufacturing, distribution and installation facilities that PPG possesses. If that one single corporate entity can’t be found, it will be interesting to see what PPG decides to do in ridding itself of its seemingly redheaded stepchild. (What’s gone and what’s past help?)

In short, there will be plenty of ripples on our little pond because of this auction’s result. However, good old Will said it best: “The patient must minister to himself” and “To thy own self be true.”

I must admit it has been a slow week for glass news of national interest. Diamond’s fire sale is still ahead. NAGS-Mitchell didn’t publish anything that cost us money. Belron did choose a new CEO but since it’s not Ken Levine, it’s not a subject worth expounding on. I’ve had to really work to find a topical subject this week but I think I found a subject some of us can sink our teeth into. Get ready folks: June 20 is “Take Your Dog to Work” day.

Some of you may remember that, at least for me, a Fido a day keeps the blues away (but not the hacks). I’ve had a pooch riding shotgun with me for the past 20 or so years with few gaps. I highly suggest the practice at least for the day. Who knows? It may become a regular one for some of you.

I’ve already told stories on this blog about the dogs in my life. I’ve certainly benefited from having canine company over the years. The thought occurred to me, however, what kind of corporate mascots could be found if various people in our industry brought dogs to work on the appointed day. For some, it might be both interesting and revealing. For example, I do believe a Shar-pei would be an appropriate mascot for some of the Asian glass manufacturers. For those who cater to the networks, may I suggest a Maltese or a Yorkie? Does it take a lap dog to know one?

I mean what company would Rin Tin Tin work for?? Could Lassie help set a 1341? What about Underdog, Snoopy and Pluto? Let’s own up to the fact that one of those canine characters would sure look better looking out an install van window than Garfield would.

Why wouldn’t anyone strongly consider bringing your pet pooch to work on June 20? After all, haven’t we been saying that the auto glass industry has been going to the dogs for some time now? Is a border collie a better choice for cowl-jumping than any production installer, I ask? My first Lab, Zeu,s could tell the difference between a cutout and a utility knife and bring it to me. That’s better than some of the clowns I’ve seen these days who think they can install glass.

So when this Friday rolls up, take the plunge and bring your frisky four-legged friend to work with you (along with some kibble and water). You shouldn’t be sorry for the effort. I do think taking your dog is easier than bringing your 5-year-old with you. I’ve never had a dog knock over a windshield stand. I can’t say the same for the child.

But that’s another story …

I have been asked over the years how to build success in business and in life. There is indeed a science that must be observed to achieve that goal. However, there is much more to that process than learning a subject in school or a craft by apprenticeship. There exists an intangible factor, which either forms ors define us. One of the simplest ways I know of learning about yourself is to play a simple game invented by sadistic and bored Scottish herdsmen more than 300 years ago. The game, which also seems to call upon the use of more four-letter words, is named golf.

I know what many of you are thinking. Golf is a waste of time; it’s boring, and rich people who have too much time on their hands play it. While some of that may always be true, I submit to you that I find it the best and one of the simplest ways to both reveal and build character I have ever found; traits our industry and world perhaps needs more of.

It has been stated by more notable people than myself that you can easily observe the true nature of a person while he or she plays golf. Sports in general are framed by rules of play and it is a well-known maxim that fits American character that states, “If you ain’t cheating, you ain’t trying.” I’ll give you the baseball steroid controversy and the Patriot “Videogate” as two recent confirming events of that statement.

Golf is very different. It is a game of rules and it is always been matters of personal conduct of how those rules are observed. I have observed people who have lost tournaments after they have voluntarily called penalties on themselves. I have seen players beg for “do-overs” or just ignore rules that they find inconvenient in casual play. Which one of those two examples would you like to know? It’s easy to lose respect for the latter type because I feel if the going gets tough in life, the same people will make excuses or not make the effort needed to succeed. Obviously those who cheat playing a silly game will cheat in every aspect of life or in business. Just consider the prospect of every owner and every installer actually complying with AGRSS Standard in every installation. Wouldn’t our industry be far better just by that one simple action? Instead we quibble, nibble or just ignore doing what should be standard practice in our craft.

I want to win. That is why I play golf and that is why I work for myself … to earn success. Golf is not a team event. Whatever success or failure you have is solely based on your individual performance. I compete usually against guys that are wealthy and retired or just plain retired. In some cases I play against college kids or younger. They don’t usually have cuts or scabbed knuckles nor are their necks stiff due to years of “heading” windshields. They have much more time to hit balls and work on their game. So who has an advantage? I take my life as a positive. It may be harder to practice or just to hold a club some days but I have to believe that what doesn’t kill you makes you stronger. I have also had the chance of meeting and playing with some of the best examples of humankind that exist. I have been privileged and enriched by those who not only love the game I love but, by example, I have learned so much about others and myself by playing this simple game.

I get sick of hearing excuses when reading about our industry’s travails. A third-party administrator (TPA) is doing this or what happens if an insurer is doing that. I will certainly admit that there exists many things out of our local hands in auto glass but it is my firm belief that we waste far too much time worrying about things we have little ability to change and ignore that what we can control.

In golf, there is no one to blame for any action but the player themselves. In the past two months I have missed qualifying for the finals of two events and I lost a tournament by my inability to make putts. It’s not some business competitor or outside agency that is at fault for my missing a 3-foot putt, nor is it the boogey man or the tooth fairy; it’s the guy who stares back at me while trying to shave.

I will readily admit that this week’s essay has a dual purpose. One is hopefully to be enlightening for you and another cathartic for me. I played so poorly this weekend in a tournament that mattered very much to me; I have lost my intense desire to play this game for the moment. That same feeling has occurred at times over the years with my glass craft. However, no matter how much I am frustrated or angry at this stupid game or skill that has allowed me to earn a living, quitting either of them is unthinkable to me. I can assure you within 24 hours I will be plotting in some manner to find an reason to drive by a golf course during a break at work, remove a putter that resides behind my seat and resume an exercise that to some (but not to me) is one of futility. You don’t get better at something without hard work and practice or by putting your head in the sand and ignoring your shortcomings. This is a valuable lesson of life that did not come out of a classroom.