TechShop Blog

the Automotive World's All A-Twitter

2009-12-16T13:48:00.004-05:00

While checking in on my "tweets" today, I couldn't help but notice a flurry of of activity from our friends at AAA. You know AAA. They're the people you call when your car breaks down and you need a tow from a "trusted supplier". They're the people who invented the "TripTik" - that personalized map that got my family from Ohio to Florida for so many years. (Though I still don't know why we got a new TripTik each year. It's not like the U.S. Government destroyed I-75 anytime during the 1970's. I guess it gave us peace of mind though.)

But I digress.

Today the folks at AAA posted all kinds of holiday season travel stats. In case you don't follow AAA on Twitter, here's the news:

AAA expects 280,000 dead batteries during the Christmas/New Year's holidays. (Good for the aftermarket sales of batteries, good for tow truck operators!)
Of the 1.3 million stranded motorists AAA will help during Christmas/New Years, AAA will fix 3 out of 5 issues on the roadside. Of the 1.3 million stranded, a half million will end up taking tow truck rides instead of sleigh rides.
77.7 million are expected to travel by auto during the Christmas/New Year's holidays, up 4.4% (Yep, my family of 4 will be part of that 77.7 million throng.)
4.2 million are expected to travel by air, an increase over last year of 2.9%.
Holiday travelers will travel an average 791 miles roundtrip with 40% traveling 700+ miles. My family will be in the 800 miles traveled range. Ugh. Are we there yet?
Airfare and car rental prices are up 2% this year, but (GOOD NEWS) hotel prices are expected to be down about 10% during the holidays. Hotel rates this year will be at their lowest average since 2004.
More Americans traveling during winter holidays is another sign consumers are continuing to grow more confident.
AAA will change 170,000 tires during the holiday period and retrieve another 170,000 sets of keys locked inside cars. Does that imply a correlation of some sort?

Fun on a Friday

2009-12-14T08:38:00.011-05:00

Old school sidecar - who doesn't love a Vespa?
Does this remind anyone else of 1930's Germany?

See the USA in a Vay-double-vay

Sexy sidecar

Inspired by DeLorean?

On the road with a Red Bull?

Home is where the heart is

The Future of the Internet

2009-12-10T14:12:00.003-05:00

I liberated this from today's AMN.com. I've never been one to "live in the moment" very well, and as the year draws to a close, I tend to think about the future more and more - waiting for this year to end, and anticipating the beginning of a new year with new opportunities.

This article discusses changes that are brewing in the way we connect as a society. One conclusion I drew from it is that it is expected we will have significantly more sophisticated connectivity in the future, but this will not necessarily lead us to be more connected to each other. In other words, we'll have all kinds of ways to reach out and touch someone electronically, but this may not automatically lead to an actual physical connection that could encourage brand loyalty, friendship, integrity or any other aspects usually attributed to a solid friendship or business relationship. I would conclude that these changes in technology may make it more difficult than ever before to get the right message to the right market. Interesting times ahead!

Herman Trend Alert: The Future of the Internet

December 10, 2009, By Herman Trend Alert

Expect the changing Internet to have new and unexpected effects on many aspects of our lives, as its user interface evolves itself into more elaborate systems.

Our phones will continue their evolution being our primary devices for online access. Improvements in voice-recognition will be significant -- especially for those whose hands are less able to operate keyboards. Artificial and "augmented" reality will become more embedded in everyday life, and the very architecture of the Internet itself will improve. These findings reflected the beliefs of select Internet leaders, activists and analysts as reported by the Pew Internet & American Life Project. The Pew Project asked respondents to assess predictions about technology and its roles in the year 2020. The panel of experts disagreed about whether this advancement will lead to more social tolerance, more forgiving human relations, or better home lives. In previous Herman Trend Alerts we have discussed the important role of mobile devices. These experts believe by the year 2020, mobile devices will be the primary connection tool to the Internet for most people in the world. For the last few years we have been reporting the rise of the mobile platform. In many countries where the infrastructure for landlines is less well developed, cell phones are the major medium for communication. The widespread established base of cell phone users will support this trend.

President Obama has long touted the importance of transparency. Technology will support the possibility of that transparency. The Pew Project forecasts that "transparency of people and organizations will increase." Unfortunately, that transparency "will not necessarily yield more personal integrity, social tolerance or forgiveness. Other key findings include that by 2020, "Voice recognition and touch user-interfaces with the Internet will be more prevalent and accepted" and globally, intellectual property law and copyright protection will continue to be a challenge to enforce, while others continue to find ways to copy and share content -- without payment. Divisions between personal time and work time and between physical and virtual reality will further evaporate with mixed effects in their impacts on basic social relations. Expect the changing Internet to have new and unexpected effects on many aspects of our lives, as its user interface evolves itself into more elaborate systems.

About the Author
Herman Trend AlertHerman Trend Alerts are written by Joyce Gioia, a strategic business futurist, Certified Management Consultant, author, and professional speaker. Archived editions are posted at http://www.hermangroup.com/archive.html

Print is not Dead - The Star Says So!

2009-12-07T10:49:00.000-05:00

Cute Video from the Star (UK) on why Print isn’t Dead

The UK’s Best Handheld:
http://blog.junta42.com/content_marketing_blog/2009/12/why-print-isnt-going-anywhere-for-a-long-long-time.html

Thanksgiving Travel - What are Your Plans?

2009-11-23T14:53:00.003-05:00

THANKSGIVING WEEKEND AUTO TRAVEL TO INCREASE 2.3 PERCENT

AAA expects 38.4 million Americans will travel 50 miles or more away from home over the upcoming Thanksgiving holiday weekend. That’s a 1.4-percent increase over last year when 37.8 million traveled. The number of travelers by automobile is expected
to increase 2.1 percent to 33.2 million. That’s 86 percent of all holiday travelers. Last year, Thanksgiving travel dropped a precipitous 25.2 percent in the wake of the housing and financial crisis.

I find it amazing that Thanksgiving travel will still be so low this year. The price of gas has leveled off in the $2.60 - $2.70 range here in NE Ohio and no one (meaning the local media) seems to take much notice of it. There are fewer flights scheduled and they are definitely more expensive this year than last. But the difference in the number of people traveling this year versus two years ago is still 12 million people!

Tomorrow's Technician School of the Year Update

2009-11-20T16:27:00.002-05:00

I just finished writing more than 100 individual e-mails to various students, automotive instructors, administrators and automotive industry members who have taken the time to nominate a school for the Tomorrow's Technician School of the Year. It took most of the afternoon. You might be thinking "that's a lot of time to spend communicating with students and instructors", and it is, believe me. But think about it - almost 200 individuals took the time to nominate their school, and we still have about 5 weeks to go before the contest closes and the judging begins. A few hours of my time isn't so much.

I've done this before, and I'll do it again. I'm going to let the entrants tell you how important it is to recognize this portion of the automotive market. No matter what segment you represent, it's probably fair to assume that you haven't spent much of your career thinking about the next generation of automotive technicians.

Tony Southern, Instructor at Alleghany HS, NC says, "One of the smallest schools in NC with an automotive program. NATEF-certified program. Students compete in NC Auto Dealers competition. Very valuable program in small community under stressful economy conditions that allows students to graduate with ability to provide for their families."

Clunkers become junkers

2009-11-19T10:40:00.000-05:00

Clunkers become junkers

Another Acquisition by Danaher

2009-11-18T11:36:00.000-05:00

Another Acquisition by Danaher

How to Make the Most out of a Lifetime Warranty

2009-10-16T13:30:00.003-05:00

Or, How to Get 7 Mufflers, 3 Sets of Shocks and 16 Batteries For Free

Andrew Markel, Editor of Brake & Front End Magazine originally blogged about this in August, but a friend just e-mailed this video to me today, so I had to share it for a Friday Fun-time.

Shops often sell "Lifetime Warranties" knowing the chances of the customer actually taking advantage of it are slim to none. Well, meet "slim to none", her name is Rachel. How did she do it? She took excellent care of her Caliente car for 45 years and kept the receipts. I love the fact that JCPenney's has guaranteeed her battery, but Firestone installs it for her.

Thanks to iATN for the find.

http://growingbolder.com/media/technology/vehicles/romancing-the-road-259598.html

AASA launches "Know Your Parts" Campaign

2009-10-13T09:29:00.004-05:00

Press release from The Automovie Aftermarket Suppliers Association, dated 10/13/09:
The Automotive Aftermarket Suppliers Association (AASA) recently launched an aftermarket industry education campaign: "Know your Parts". The initiative's goal is to educate all partners in the aftermarket supply chain from supplier to consumer about the importance of using quality, brand name products - and the hazards to the industry and to public safety posed by low cost, low quality parts.

Professional automotive technicians have already played a vital role in galvanizing this education campaign, and will continue to be integral to getting the message to consumers, according to Steve Handschuh, President and COO of AASA. "Technicians are the "front line" in the "Know Your Parts" campaign. We are reaching out to technicians as the main point of contact with consumers - we want to help them communicate effectively with their customers the importance of quality, brand name parts."

The ambitious "Know Your Parts" campaign was initiated by the AASA Marketing Executives Council (MEC). Since its formation in 2006, AASA MEC members have studied a growing trend among various aftermarket channel partners offering lower-cost, often lower-quality parts in an attempt to offer more competitive pricing and improve profit margins.

"The AASA Marketing Executives Council was organized three years ago to address common concerns as marketing professionals working for aftermarket suppliers," explained Jack Cameron, AASA Vice President and Staff Executive for the MEC. "Very early on, we identified a major concern: the proliferation of low-cost, poor quality parts in every level in the aftermarket distribution channel," he said.

Technicians were an important cource of information in the AASA MEC's research into the issue. The Council held focus groups with more than 60 professional technicians and owners of independent repair shops. The focus groups represented a cross-section of automotive service - from Los Angeles on the west coast to the heart of the midwest in Chicago to the growing southeast in Raleigh, NC.

The results of these focus groups, outlined in the AASA MEC Special Report, "Independent Repair Industry: Focus Group Findings on Buying Influences of Repair Professionals," were enlightening. The focus groups revealed that technicians depend on their supplier partners to provide the services they need such as cataloging, sales representation, warranty, and more - BUT they are largely unaware that the full service aftermarket supplier is the channel partner providing these services.

"Technicians do not buy directly from manufacturers, so it is understandable that they do not view the essential services offered by manufacturers to distributors as a motivation for loyalty toward a specific brand," Cameron noted. "But one point made clear from all the focus groups is that product quality is the Number One priority of technicians. Most repair professionals put quality above price and refuse to put their reputation at risk by installing inferior quality parts."

"Our entire association was mobilized by the coment heard from professional technicians across the country: 'when it comes to quality, it comes down to who will stand behind their parts," Handschuh emphasized.

Unlike generic versions of consumer products, auto parts are not required to list ingredients and may or may not meet original specifications - so technicians may be unaware of the risks involved with some low cost products.

"There is the potential for these low quality, low cost products to break during installation, becoming projectiles and endangering the technician working on the vehicle and everyone in the shop." Handschuh said. "These parts also pose safety risks to the consumers driving the vehicles on which they are installed and to everyone traveling the highways and roads of our country."

And low quality parts also pose a serious risk to the entire aftermarket's reputation.

"As customers ourselves, we all know that one bad experience can turn us against a particular business," said Cameron. "Independent repair shops stand to gain business now with the closing of car dealerships and their service departmetns across the country," he explained. "But all it will take is a bad experience at an independent repair shop due to a faulty part to shake a consumer's confidence in independent shops as a reliable place for automotive service - and drive them back to the OE dealer for service."

The entire aftermarket supply chain will be the conduit for spreading the "Know Your Parts" campaign. The chain begins with "Full Service Supplier", the manufacturers which provide the essential services including product specifications, quality control, product liability, research and development, and more.....

This complete article can be found at www.aftermarketsuppliers.org or you can e-mail media@mema.org. They will also make the full reports available to you . I've read both reports by MEC, and I can tell you there is a lot of good information in them.

2009-10-05T15:07:00.006-05:00

"As you go through life, make this your goal, watch the donut, not the hole" - Burl Ives I was recently reminded of this phrase by an article I read about sales and the importance of the personal sales touch, and it brought a smile to my face for a couple of reasons. One - my mom had eclectic musical tastes as I was growing up, so I was quite familiar with the rest of the song and the melody quickly returned and I started to hum it before I began to write. And two - to some degree, it personified the way my father lived his life. He was a "traveling salesman" in the 60's and 70's. He didn't sell stuff that sold itself (like automotive parts and tools). He sold things like DAP caulk and encyclopedias and GOOP waterless hand cleaner. I think on it today and wonder how the heck could someone support a family selling this type of stuff? Yet he did, and he did it for a lot of years. And he was always saying things like, "watch the donut, not the hole" to cheer one of us and keep us going. Another favorite of his was the Ant song (no relation to Dave Matthew's "Ants Marching".) You know, it goes "just what makes that little old ant think he'll move a rubber tree plant? Everyone knows an ant can't move a rubber tree plant, but he's got high hopes, he's got high hopes, he's got high apple pie, in the sky hopes." I think those phrases helped him through down times too.

I'm not suggesting that simple songs from the 50' and 60's are going to turn anyone's day around and inspire you to get back to basics, but consider your efforts lately. How many of us are calling clients and getting voicemail, or depending on e-mails to get the sale made then wondering why business falls flat? We have lots of excuses: we're busy, the client's busy, no one has time for a meeting, the expense of a personal sales call in a down year, no one returns phone calls or e-mails. These are all antiseptic practices and can be very impersonal.... As a result of these types of "sales activities" it's not hard to imagine that we're looking at a lot of holes is it?

Nothing beats face-to-face selling. Nothing. Not tweets, not e-mails, not text-messages, nor voicemail or video conferences. A meeting with the decision maker and a personal handshake go a long way.

Now is the time to get back to basics, call your customer, meet with your customer and remember why we're in a "relationship-selling" business and why it can work. I think mostly it's because this business is filled with a lot of nice people who like to do business with a bunch of other nice people. And by the way, we happen to have something that fulfills a need, or makes life easier, or improves productivity. We just need to find the time to tell the story. So remember,

As you go through life make this your goal, watch the donut, not the hole. - Burl Ives

AAIA Tools & Equipment Meeting

2009-09-11T10:41:00.008-05:00

It was good to see the AAIA Tool & Equipment Committee members this past week. We met in Boston and had some lively discussion at our Thursday meeting.
The night before our business meeting, we had our networking dinner in Boston's North End. We enjoyed delicious Italian fare at L'Osteria, a delightful Italian restaurant that Stu Amols recommended.

Ida's was just down the road from L'Osteria. Typical North End restaurant.

Bill Robinson, Danaher; and Bob Hall, Schumacher Electric; appear to be enjoying their pre-dinner beverages.

Chicken L'Osteria - Chicken breasts cooked with mushrooms, spinach, mozzarella and prosciutto, served with a light lemon sauce.

A great time was had by all! Thanks for the suggestion Stu!

Cash for Clunkers Roundup

2009-08-27T13:35:00.011-05:00

This just in: It's been reported that approximately 660,000 old vehicles were traded in for new vehicles inthe CARS program. According to the U.S. Transportation Department, these vehicles were the top movers during the Cash For Clunkers Hoe-Down:

TOP 10 vehicles sold in "clunkers" program

1. Toyota Corolla

2. Honda Civic

3. Toyota Camry

4. Ford Focus FWD

5. Hyundai Elantra

6. Nissan Versa

7. Toyota Prius

8. Honda Accord

9. Honda Fit

10. Ford Escape FWD

(Notice there are no vehicles represented by the new GM government-managed car manufacturer?)

Top 10 "Clunkers" trade-ins

1. Ford Explorer 4WD

2. Ford F150 pickup 2WD

3. Jeep Grand Cherokee 4WD

4. Ford Explorer 2WD

5. Dodge Caravan/Grand Caravan 2WD

6. Jeep Cherokee 4WD

7. Chevrolet Blazer 4WD

8. Chevrolet C1500 pickup 2WD

9. Ford F150 pickup 4WD

10. Ford Windstar FWD van

(Notice there are no foreign nameplates being clunked.)

What next? How about Cash for Cons? or maybe, Assets for Appliances (get those old Maytags off your kitchen floor and into a city dump), or Funds for Furs (the fur industry has really taken a hit lately)

Source: U.S. Transportation Department

Last photos from Kenosha....

2009-08-21T10:11:00.019-05:00

Inside the Innovation Works building, a couple of visitors take a look around. Andy Ginger, Vice President and Chief Marketing Officer, explains Snap-on's renewed commitment to problem solving through innovative solutions.

Another one of their new toolbox graphics.

The rear of the futuristic Carbon Motors police vehicle, scheduled to hit the roads in 2012.

Rear seat is one-piece, molded to allow for handcuffed arms.

The Snap-on Chevy. Again, just look for the cool Snap-on details.

More No Compromise Tour Photos

2009-08-20T15:06:00.019-05:00

The Snap-on 57 Chevy. Over 1,000 hours in customization time. The lug nuts are actually Snap-on sockets. Note the trim - Snap-on wrenches.

A 1958 Rambler

I didn't realize I had taken so many photos the other day in Kenosha, but my file of photos is saying - yes... you did.

Here's a nice shot of a Ranchero, age and manufacturer unknown. (I know I'll hear from a car buff or two on that one.) a Ford!

Unconventional toolbox design, unconventional welding helmets. Target market: Younger techs

Traditional tool storage, definitely designed for the mature professional technician, or perhaps for a start-up shop or dealership.

This is not a Beetle, though it resembles one. It is a Citroen, notably the "Deux Cheveaux", for 2 hp. It was built before WWII and was designed to be able to go long distances on little fuel, be comfortable, and allow two farmers to carry a crate of eggs to market without breaking any, all the time traveling over rough roads or ploughed fields. Because it was so revolutionary, the French buried the prototype during WWII to keep it from the Nazis. The original was made from aluminum, but after WWII a new material was chosen for the body.

Snap-on uses it in their Innovation Center as a prime example of a solution to a problem that was faced by many people in Europe during the late 20's, early 30's. Roads were horrible, gas was expensive and so were cars. This had many solutions to keeping costs low - a 2-cylinder engine, a direct-drive shift stick, seats that came out for easy cleaning. And they only quit production on this in the 1980's.... The Citroen inspires the Snap-on Innovation team to think creatively about solutions to problems that techs face. This Citroen was technologically advanced and innovative, yet extremely utilitarian and deceptively simple in the bodywork. If you look closely at the car below, you'll see little red signs all over it. These point out specific solutions the Citroen provided to specific problems the car driver faced.

Another Ford, this time for the Air Ford-ce...

Lots of older vehicles brought out the Snap-on retirees. (seme, literally.)

The associates were treated to games of chance, where they could win Snap-on branded merchandise.

Or they could buy it, like the rest of us folks.

Inside a Rambler

Outside a Rambler

Snap-on No Compromise Tour stops off in Kenosha, WI

2009-08-19T15:59:00.012-05:00

This was a very nice event, hosted by Snap-on World Headquarters in Kenosha, WI. I think it may have been partly sponsored by several local Snap-on Distributors. It was a beautiful day yesterday. The heavy rains from the day before had passed through, leaving a perfect afternoon to spend outside, looking at cool cars, cool tools and other Snap-on products.

This is a car from Carbon Motors, currently in development for U.S. police departments across the country. Very cutting edge, they spoke with thousands of police officials and developed this car for them from the ground up, coming up with a total of 11,000 solutions to problems the police officers faced in their current vehicles. Snap-on is working with Carbon Motors on additional solutions.

AMC Javelin (thanks Jack!)

Inside Snap-on's Innovation Center, you'll find continually changing exhibits, similar to this.

Meanwhile, while I was getting a tour of the inside facilities, the Snap-on associates were enjoying hot dogs and hamburgers with their co-workers.

This is the back end of a 1957 Chevy. Note the Snap-on wrenches. More photos of this amazing car to come in tomorrow's post. The use of Snap-on tools was quite clever.

Snap-on NO COMPROMISE Tour

2009-08-12T15:39:00.003-05:00

The Snap-on NO COMPROMISE Tour is headed to Kenosha next week and so am I. Assuming there are no issues between CLE and ORD airports, I'll have a nice early start on the day. Should be a beautiful day for a drive from the Chicago airport up to Kenosha...

What is the NO COMPROMISE Tour you ask? It's venue that Snap-on developed to bring tools to the public. And, after a year of traveling the country, The Snap-on Tour is headed home to Kenosha, WI with a tour stop scheduled for August 18 at Snap-on World HQ.

It will be open to the public from 4 to 8 p.m. As a special added bonus, the renowned Ring Brothers will have their 2008 Hot Rod of the Year Camaro on display and NHRA Nitro Funny Car drivers Cruz and Tony Pedregon will be on hand from 4 to 5 to sign autographs.

The Tour was developed to provide visitors with the opportunity to speak with Snap-on officials about how Snap-on Toos can help them get the job done faster and easier. Alicia Smales, VP of marketing for SO says, "the NO COMPROMISE TOUR is designed to give "Snap-on Nation" an interactive opportunity to see the newest and most exciting products Snap-on has to offer. We wanted to create an informative, but fun, traveling tour that would appeal to everyone and I know we have accomplished that with the NO COMPROMISE TOUR." (sorry, I'm not yelling that at the top of my lungs, that is just how all their PR prints it out with a TM next to it.)

So - any questions you want me to ask the Snap-on officials that will be on hand? I already have a few of my own ready, but will be happy to add yours to the list and report back next week!

Cash For Clunkers

2009-08-05T14:49:00.003-05:00

This just in.... A discussion from the Linked-in network posted a poll, asking: "Do you Think the Federal Cash for Clunkers program should be continued?" With 352 responses posted so far today, the majority of voters say YES (53%). That is all.

Danaher posts negative results, but is on track w/Expectations

2009-08-04T10:15:00.005-05:00

Recently, Danaher Corp. (Parent of Matco Tools and Coats Hennessy) (DHR - Snapshot Report) reported negative second-quarter results. However, they were in line with expectations considering the weak global economy.

Net earnings for the quarter were $296 million, or $0.89 per share -- an 18.5% drop from a year-ago profit of $363 million, or $1.09 per share. However, it surpassed the Zacks Consensus estimate of $0.85 per share.
Despite the challenging economic environment, EPS was above expectations primarily on savings generated from the restructuring actions initiated in 2008 and taken in the first half of 2009 as well as reduction of material costs and operating expenses across the company.
Quarterly sales were $2.67 billion, 18.5% lower than the $3.28 billion reported a year ago. Core revenues fell 15% in the quarter, compared to the second quarter of 2008.
Revenue from the professional instrumentation segment decreased 17% for the quarter with core revenues down 15.5% primarily on lower sales volumes and incremental impact of year-over-year restructuring costs incurred during the quarter.

Environmental platform revenue fell 3.5% in the quarter with core revenue down 1%. ChemTreat revenue was essentially flat year over year as unseasonably cool weather in April and May briefly delayed sales to boiler cooler applications. Test and Measurement revenue declined 30.5% in the quarter with core revenue down 30% reflecting a very challenging market environment.

Tools and Components revenue were down 23% with a core revenue decline of 22.5%.

Danaher’s free cash flow performance is encouraging. It was $438 million at the end of second quarter 2009. Moreover, free cash flow to net income conversion ratio was 148%. Like many in our industry, they appear to be "saving" their way through the recession, not improving their top line.

Snap-on Announces 2nd Qtr 2009 Results

2009-07-31T13:51:00.005-05:00

Snap-on Announces Second Quarter 2009 Results, July 31, 2009, as reported by aftermarketNews staff.

Company says investment in strategic growth opportunities continues.

KENOSHA, Wis. -- Snap-on has announced operating results for the second quarter of 2009.

Sales of $590 million were up 3 percent sequentially from first quarter levels, but down 23 percent compared to last year. Without the effects of currency, sales were up 0.8 percent sequentially, but down 16.4 percent year over year.
Operating earnings of $70.3 million increased $6 million, or 9.3 percent, over first quarter 2009 on essentially flat sales levels as improved operating performance and higher financial services income were partially offset by $6.6 million of higher restructuring costs. As a percentage of revenues, operating earnings improved to 11.4 percent from 10.9 percent in the first quarter. Restructuring costs in the second quarter of $8.6 million reduced the operating margin by approximately 140 basis points. Operating earnings in the second quarter of 2008 were $111.7 million on significantly higher sales volumes.
Cash flow from operations of $155.6 million increased significantly from $14.7 million in the first quarter of 2009 and $80.5 million in the second quarter of 2008 primarily due to working capital improvements principally as a result of increased emphasis on inventory reduction.
Net earnings attributable to Snap-on of $37.4 million, or 65 cents per diluted share, increased $2.6 million, or 5 cents per diluted share, over first quarter 2009 levels. Net earnings attributable to Snap-on in the second quarter of 2008 were $66.9 million, or $1.15 per diluted share.

“There were a number of encouraging signs in the second quarter, particularly the sequential improvements for our Snap-on Tools and Diagnostics & Information businesses,” said Nick Pinchuk, Snap-on chairman, president and CEO. “The deepening of the recession across most European economies and the spreading of economic weakness to other industries had a more severe impact on us in the second quarter, particularly for the Commercial & Industrial Group. Nevertheless, sales and operating income for the overall corporation did improve sequentially from the first quarter. “As we said previously, we continue to drive cost-reduction initiatives, and in the second quarter took a number of actions resulting in $8.6 million of restructuring costs, with $6.7 million related to the Commercial & Industrial Group. In addition, we continue our investment in the selected strategic growth areas that we believe will be decisive in our future. As a result, we believe Snap-on is making significant quarter-by-quarter strategic progress and will emerge from this downturn in a stronger position. Going forward, we will continue to aggressively manage the balance between investing in growth opportunities and acting on rapid continuous improvement and our other value creation initiatives. In the near term, Snap-on anticipates no significant change in the economic climate. Snap-on is continuously responding to the global macroeconomic challenges by furthering its RCI and cost reduction initiatives.

In the first six months of 2009, Snap-on incurred $10.6 million of restructuring costs, including $8.6 million in the second quarter, and presently anticipates that full-year 2009 restructuring costs will be in a range of $20 million to $24 million, up from the previously communicated range of $14 million to $18 million.

Snap-on is also proceeding with several of its planned growth investments, including further expansion of its manufacturing capacity in China and in Eastern Europe, both of which are proceeding on schedule. Snap-on continues to expect that full-year capital expenditures will be in a range of $60 million to $70 million. On July 16, Snap-on terminated the financial services operating agreement that it had with The CIT Group, relating to the parties’ Snap-on Credit LLC (SOC) joint venture. Previously, the company recorded gains on contracts sold to CIT as financial services revenue. The company presently expects that operating income from financial services, which is before interest expense and which totaled $16.6 million in the second quarter of 2009, will be a loss in a range of $8 million to $10 million in each of the third and fourth quarters of 2009. Snap-on estimates that its incremental financing needs for SOC will approximate $450 million over the next 12 months. Snap-on believes that it has sufficient available cash on hand, cash flow from operating activities and available credit facilities, including access to public debt markets, to fund the financing needs of SOC.

Snap-on continues to expect approximately $3 million per quarter of higher year-over-year pension expense in 2009 due to declines in pension asset values. For the first six months of 2009, foreign currency effects reduced year-over-year operating earnings by $21.3 million, of which $10.3 million occurred in the second quarter. As a result of the above, Snap-on continues to expect that third quarter sales and earnings will be down year over year.

Snap-on is aggressively managing the balance between investing and capturing strategic growth opportunities with the need for cost-reduction actions beyond those already implemented; the current economic uncertainty makes it extremely difficult to presently predict this balance as the company continually adjusts to the challenging business environment.

These are just the highlights. You can read the entire article at www.aftermarketnews.com

NACAT Conference - 2009

2009-07-29T07:37:00.016-05:00

Last week, Tomorrow's Technician editor, Ed Sunkin, and I drove down to Charlotte, NC for the 2009 NACAT Conference. This year it was held at the Central Piedmont Community College. The North American Council of Automotive Teachers meets annually in a different city each year. It is a week-long conference filled with day-long seminars and training. Despite the economy, this year's conference had a record attendance level. We went for the trade show portion.

The purple truck below belongs to Dan Perrin's wife. Dan is the NACAT Executive Manager. He tells us his wife Lynda lets him drive it for her because she "likes the attention it gets and would rather wave back than have to watch the road."
Northwood University had a booth. Matco Tools had a booth. They have a program to reach automotive students while at school.

Hunter was there.

Chicago Pneumatic brought this beauty.

Chicago Pneumatic also brought out their beautiful people and beautiful tools.

Delmar was there.

Snap-on had a fun time with their booth. Play darts and win a cap! The instructors liked it.

We highlighted the School of the Year program at our booth, showcasing this year's winning entry.

Gates Rubber.

ISN Show - The Grand Finale

2009-07-02T08:27:00.017-05:00

Mechanics Time Savers had a colorful booth.

Some people think Rich Evans is a little stiff and one-dimensional.

But he was everywhere. Here he is at the Chicago Pneumatic booth. The theme was tropical and Rich was hot!

Chicago Pneumatic got in on the giveaway action. One lucky distributor would be leaving Orlando with a 2009 Dodge Challenger.

There's Rich again. This time he's on tv.

Rich insisted on taking his picture with me. I autographed his t-shirt as well.Several of the Chicago Pneumatic employees dressed for the tropical theme of their booth. Did this guy go too far? You be the judge. (Hey, if it sells more tools.......)

Just one of the many new products coming from Chicago Pneumatic.

One young and happy fan of Irwin Tools. She like it so much, she kept trying to eat the display.

It was always very busy in the Irwin booth.

Extreme Tools featured their toolboxes.

And that concludes the coverage (in photos) of the ISN show. Look for commentary next week! (just kidding.)

At ISN, the Show must go on

2009-07-01T15:38:00.015-05:00

Part IV - and seriously, after this I can only do one more blog on the show. I mean - the show took place over two days and this blog is now running into day 4.... Plus, with the holiday coming up, I need to wrap this up and move on. (the holiday being Independence Day, not Canada Day - no offense to my Canadian readers, but we don't get Canada Day off in Ohio.)

This is the "official" photo of the 2010 Camaro. See below for the ISN Show Camaro that Ingersoll Rand gave away to one lucky winner.

So here is a new lift from Challenger/Quality Lifts, though for the show it was private-branded "Mountain". This is a nice little 4-post vehicle storage/lift. It's big enough to hold a pick-up truck on the top and still have room for a car or truck below. Price point was nice for the shadetree mechanic.

Ingersoll Rand had a very nice display of new products.

The Camaro they were giving away was awesome! Looked great in black! Not even available at most dealerships yet.

Grey Pneumatic had a very large booth, filled with specialty sockets of all sizes.

GearWrench was busy and full of order-writing customers both days. They had a large booth and it was filled end-to-end with cool GearWrench tools.

DeWalt was a first-time exhibitor. They had great deals on some products and were pretty busy everytime I walked by their booth. This shot was taken prior to the show opening.

SPX had a Porsche Boxster in their booth, but honestly, that was not the draw for the customers. Their nuclear show specials and great products brought people in.

Special thank you to Chad Myers for the use of your photos.

A Break from the ISN Show Updates...

2009-07-01T13:06:00.003-05:00

This morning I checked the recent traffic on my blog. It tends to go up when I write more. Not too difficult to understand. And readers numbers have been steadily climbing since Sunday. I like to see where my readers are from, and the number one and number two supporters are the U.S. and then Canada. But for the first time ever, Canada has been booted from the number two spot of providing most of my readers.

I narrowed my timeframe to the past three days and asked Google Analytics where my readers originated. Number one was the United States. Number two was 14 visits (over 3 days) from a town in Brazil called Pelotas. Now, I don't know anyone in Pelotas (that I know of). I don't know anyone in Brazil. And I don't speak Spanish or Portugese. But I am darn glad to have my Brazilian readers! Thanks!

In the U.S., most of my readers come from California, Ohio, and Florida. But there is one mystery to me. I have had a regular reader from Miamisburg, OH. Again, don't know anyone there (or maybe I do?). Luckily though I do speak the language, so Mr. or Ms. Miamisburg, drop me a comment and let me know what you think about the blog!

ISN Show - Part III

2009-06-30T14:55:00.012-05:00

Another cool design from Waterloo Toolboxes. Sometimes a sale starts with the outward appearance. Northcoast Tool (Filmtec) had a large booth and stayed busy throughout the two days of the show.

George Stockin, of Lock Technology, insisted he had the coolest booth on the show floor. Tests performed by Steve White of Electronic Specialties indeed proved that George had the coolest booth temperature, by 10 degrees. An advertising specialist was called in for an unbiased confirmation. This is not how Steve typically demonstrates the effectiveness of his tools.

Rich Hulden, Sunex, just forked over a ton of cash to this mobile distributor, in exchange for a very nice order. Before he could pocket the cash, another person arrived at the scene, looking for a handout. I don't think he met Rich's criteria for a "cash-back" exchange.

More orders were written than at any previous ISN show. These gentlemen wrote them wherever they could find a flat surface. This happened to be a tool cart in the Mountain booth.

What was everyone from Lisle doing? Writing orders as fast as possible of course. They had ISN Select Extreme Deals.

Another shot of the expansive Sunex booth.

This show had everything. Even live alligators!

ISN Show - Part II

2009-06-29T14:53:00.012-05:00

Today, just some photos and minimal commentary about the show. Tomorrow I'll post more photos and include some "factoids" from ISN.

The TechShop booth embodied the definition of "cutting edge" (paper-cutting edge that is.)
Waterloo Toolboxes introduced some cool designs. This is their latest on one of the their bigger boxes. I believe Forrest Thompson said they'd be ready to ship by July, 2009 (just 2 days from now).

Just a portion of the Makita booth. In addition to great deals on Makita, they offered a huge flat-screen tv with Blu-Ray DVD to one lucky jobber.

Sam Adams of Clore is shown here, writing orders with one hand, and snapping his fingers to the beat of the loudspeaker with the other.

Chicago Pneumatic featured a tropical theme and rocked it with their very own Steel Drum Guy (not as loud as a Steel Drum Band, but just as fun to listen to. Only thing missing was a Rum Runner.)

Along the hallway leading to the show's entrance, ISN featured various manufacturers' products in these glass cases. I thought it was a very effective way to highlight new products and get the dealers thinking about tools before they even entered the show.

DMT featured knife-sharpening tools.

Sunex expanded their presence. I think their booth was a 40X60 ft. And they had some screamin' deals and cool new products.

It was all about selling tools!

ISN Show - Part 1

2009-06-27T14:45:00.004-05:00

The ISN Tool Dealer Expo opened early yesterday afternoon in Orlando, FL at the Gaylord Hotel. The Gaylord was a nice change from last year's venue. It allowed enough room for all vendors and dealers to stay in one location. Because all the events were held inside, there were no worries about the potential of walking from your room to the show during inclement weather.

Prior to the show's opening, ISN's management welcomed the vendors at a pre-show meeting. Scott Pilkenton announced the awards they will present to key suppliers tonight. He also reviewed the exciting Give-A-Ways they are highlighting at the show. Some of the gifts include a 2010 Camaro (Black and Really Hot!), 2009 Porsche Boxster, 2009 Dodge Challenger, 2009 Dodge Ram, 2009 Four Winns Boat, Ladies Coach Purse PLUS a $500 gift card and much more. The value of the raffle awards is estimated to exceed $200,000! And, it makes for an exciting finish this evening.

This is ISN's 9th event in 8 years and they predicted the biggest turnout in the history of the Expo. Numbers heard on the floor ranged from 700 - 850 dealers. Traffic yesterday was steady and never overwhelming. Most vendors were quite pleased with the turnout. When the Expo opened this morning, the show floor quickly filled up and there were new dealers signing up at the registration desk to get inside.

So far today, all indicators point to a very successful show. Many of the vendors report better sales yesterday v. the first day of the show last year. One day does not make a trend, but let's hope this is and indication that our business is ready for change. I've got to get back to the show floor - don't want to miss out on any of the excitement!

Orlando Florida, Here I Come!

2009-06-25T09:12:00.009-05:00

After Las Vegas, I think Orlando, Florida is the city I hate the most when visiting for business purposes. Oh sure, they have a lot of great things going on to attract the business visitor....

Great weather..... Excellent golf courses and lots of them....

Great hotels, lots of restaurants and many many bars (very important to tool people)

Easy to get around.....

Let's not forget the Mouse and his house.

Well, this week I'm looking forward to it. The economy is still shaky and the news I'm hearing from many manufacturers is shaky as well. While earlier this year (April, May) it felt like many of us were moving back into the positive sales lanes, I recently have heard much discussion that June and now July are looking really dismal. So I hope to have a lot more discussions on the ISN Tool Expo floor and will let you know what I hear when I'm back at the desk next week.

As it is, I'm leaving 91-degrees, hot and humid Akron, Ohio for 91-degrees hot and humid Orlando. Will be just like home. Have a great week y'all!

Scootering with Camera in Hand

2009-06-14T12:15:00.004-05:00

Testing my skills at riding and shooting. Obviously, I wouldn't recommend this for everyone. Especially since the results are not all that compelling. Big scooters for big people. Did I hear someone order a Big Mac?

I caught a lot of grief from my kids for committing this "dangerous" act.

Though my youngest son finished his scolding with this comment, "though if you would have been taking movies, that would have been cool."

TEDA Meeting, June, 2009

2009-06-12T07:49:00.035-05:00

The TEDA meeting got off to a great start with the annual Golf Outing. Returning to Turf Valley Resort this year, we were off to a 9 a.m. shotgun start with approximately 74 golfers. TechShop provided the golf towels and tees again this year. One of the golfers, sporting a snappy swing and a beautiful TechShop golf towel.

Here's one of the foursomes. Is Steve trying to improve his lie?

After a long morning/afternoon of golf in the warm, 80+ degree weather, TEDA held a cocktail reception in the evening. It was a nice way to end the day, very relaxed, and lots of good conversation.

Wednesday morning, Glen Pratt kicked off the business meeting by introducing Rob Halbritter (Mid-States Tool). Rob addressed the group on overall business conditions and challenges we are all facing. He commented on the life cycle of the small business, ending with, "we need to beat the 40-year death rate of small business. We need to continue to be successful distributors and weather this economic storm and dance in this economic rain."

Glen returned to the podium for his annual State of TEDA address. TEDA is a group of 9 shareholder warehouse distributor members, with 12 locations.

This year was the 15th annual vendor's meeting, the 9th annual trade show. Even though we've all faced tough sales conditions this year and late last year, Glen announced that they had nearly the same number of attendees as last year. There were 138 registrations, and 73 exhibits. He was also pleased to announce they added 6 new vendors this year. He commented on TEDA's commitment to creative marketing through the use of their website and the TEDA Toolbox.

On to the sales story..... Glen reported that though driving mileage is down, he felt it was offset by the age of vehicles. He commented on the slowdown in consumer spending and the crazy fear-mongering as reported by mainstream media as contributing factors in the sales decrease they saw last year. (He specifically excluded the trade press from these comments. Thanks Glen!) In 2007, the TEDA members had a 9% increase overall. They suffered minor sales decreases through the third quarter of 2008, but 4th quarter really hit hard, with a 20% decline in sales. And historically the 4th quarter has been their best sales period. Overall, they ended 2008 down 8%. Not bad compared to what I've heard from others.

Good news, through the end of May, the TEDA group is flat v. same period last year. (However, last year was a down year through May, 2008)

Miscellaneous Numbers:

Specialty Tools and Hand Tools make up 38.8% of the members' total volume.

Shop lights was a bright spot in 2008 (get it, bright spot..). Their sales were up 14%. Unfortunately, it's a small category for the group and didn't carry much weight. Their next best performing category was Electric/pneumatic tools which were flat. All other categories were down.

Shop Equipment (3.5%)

Specialty Tools (5%)

Electrical Test Equipment (5%)

All other categories had sales decreases in the double-digits.

90% of all new products sales were generated by promotion in the TEDA Toolbox.

By report's end, Glen expressed an optimistic outlook for the remainder of the year. He is seeing more supplier's look to "green" initiatives and Hybrid tools for new products.

Glen then took a few moments to recognize the 2008 President's Award winners. This award is made based on a supplier's volume, growth and member participation. 2008 Award winners are: Ajax Tool Works, Bayco Products, Cal-Van, John Dow Industries, Legacy Manufacturing, Lisle Corp., Mayhew Tools, Midtronics, Schumacher Electric, and Sunex Tools.

Then the Golf Awards were announced. I'm happy to report that for the first time in 7 years, I actually was on a team that played well (not much thanks to me though. We were carried by our scratch golfer and a woman who had only excelled at putt putt before now.)

Trade Show Stuff

Craig Rae, President of SMC had some new products on display.

Cliff Resnak from SK Tools was happpy to report that SK is alive and well. They're focusing on their core lines. (I apologize for the glare on the photos)

Shop-Vac is beginning to take a hard look at the automotive aftermarket. Ron Geczi, VP of National Accounts brought a stainless steel version of the Shop-Vac. It was designed specifically for the automotive aftermarket, and can't be found at Home Depot, Lowe's or any other big-box retailer. (Unfortunately this photo does not do justice to the product.)

Paul Neu, Neu Tool Supply, talks with Sandy Allen and Rachel Purcell of Porta-Sol.

These guys don't need no stinkin badges! But it's Bob McInturff of Neu Tool Supply and Scot Holloway of Bartec.

Bob Hendry, of John Dow Industries, shows off his recently awarded President's Award.

Michael Gering, M. Eagles Tools Warehouse, chats with the Irwin people.

GearWrench featured some new tools and new sets. This is a 17 pc. metric combo set.

Clore/Solar had a full table.

Sunex featured new sets as well.

Spent some time talking with Scott Ironside, as is evidenced by the abundance of photos of SUNEX new products.

It was good to see these companies are investing in new products, new sets, new packaging. They're not afraid to invest in their future in times like these. Once the economy picks up, these are the companies that will be successful and able to pick up market share quickly.

Makes me Laugh

2009-06-12T07:48:00.003-05:00

This blog has earned $16.85 YTD. Good thing I have a day job.....

The Hybrid Golfer

2009-06-09T07:40:00.008-05:00

Have you tried the new hybrid golf clubs? I guess they're not so new anymore. Stand tall you noble swingers of clubs and losers of balls.....

A recent study found the average golfer walks about 900 miles a year.

Another study found golfers drink, on average, 22 gallons of alcohol a year.

That means, on average, golfers get about 41 miles to the gallon. Kind of makes you proud. Almost feel like a hybrid golf machine...

(special thanks to Mark for his insight into the golfer's world.)

TEDA's Vendor Advisory Meeting - Baltimore, MD

2009-05-29T08:14:00.004-05:00

TEDA (Tools and Equipment Distributor's Association) is holding it's annual Vendor Advisory Meeting next week in Baltimore. It's a unique blend of trade show, old AWDA-type vendor/WD meetings, golf and business review. This year TEDA President, Glen Pratt, expects about 72 golfers for their 13th annual Golf Scramble at the Turf Valley Resort on Tuesday. He generally gets about 100 manufacturers to exhibit on Wednesday, from 9 a.m to 5 p.m.

All events will be held at the Turf Valley Resort, beginning with golf and an evening cocktail reception. Ending with the business review, trade show, and one-on-one conferences over the following two days.

I expect there will be plenty of new products at the show. One thing that makes the TEDA Meeting unique from other traditional trade shows is the very small number of people that actually interact. This meeting is strictly for the 12 TEDA WD members and their best suppliers.

After the Baltimore meeting, I'll be heading up to Washington D.C. for a family wedding. I'm also going to work on my "Scooter Shots™".... trying to match (or at least get close to) a blogger friend's quality photography of scooters around his current home town.

I'll be sure to post photos when I'm back in town in early June. (photos of the tools and scooters, not the wedding.)

Ten Commandments of Human Relations

2009-05-28T12:41:00.004-05:00

I've been trying to rediscover what the top of my desk looks like lately, and as I tidy up, I keep finding notes to myself for blog topics. This was an easy rip-off actually. I think I originally got it from my sister, a former Kirby (vacuum cleaner) distributor. I can't imagine surviving in her environment - 80% cold calls, 80% people just wanting a free carpet cleaning, 20% who might be interested and 1 -3 % who actually end up buying. But I give her a lot of credit, she ran a distributorship successfully for over 15 years and started each day with a positive thought and comment! That's positive!

So, here are the Ten Commandments of Human Relations:

Speak to People. There is nothing so nice as a cheerful word of greeting.
Smile at People. It takes 72 muscles to frown, only 14 to smile.
Call People By Name. The sweetest music to anyone's ears is the sound of their own name.
Be Friendly and helpful. If you would have a friend, be a friend.
Be cordial. Speak and act as if everything you do is a genuine pleasure.
Be Genuinely Interested in People. You can like almost everybody if you try.
Be Generous with Praise, and cautious with criticism.
Be Considerate with the feelings of others. There are usually three sides to a controversy; Yours, the other person's and the right side.
Be Alert to give service. What counts most in life is what we do for others.
Add to this a good sense of humor, a big dose of patience and a dash of humility, and you will be rewarded many-fold.

This is Rascal hanging on the driveway last weekend. It got hot and so did he. Hope everyone is enjoying the end of Spring and the onset of Summer.

Tips for a Better Life

2009-05-22T08:48:00.003-05:00

After reading through this, I realize it's been cobbled together from many sources (Dale Carnegie, probably some priests or ministers and definitely "Anonymous") so I apologize up front for its lack of originality. But, it's a short read for a short workday. We're upon Memorial Day Weekend here and our office closes at noon. Here then, are the"Tips":

Frame every so-called disaster with these words: "In five years, will this matter?"
Forgive everyone for everything.
What other people think of you is none of your business.
GOD heals almost everything.
However good or bad a situation is, it will change.
Your job won't take care of you when you are sick. Your friends will. Stay in touch! (hint: facebook...)
Envy is a waste of time. You already have all you need.
Each night before you go to bed complete the following statements: "I am thankful for ______. today I accomplished _____."
Remember that you are too blessed to be stressed.

And I saved the best for last, Trust in God, or if you're dyslexic, Trust in Dog.

The Prius - What's Next

2009-05-21T12:52:00.007-05:00

I was just reading about the 2010 Prius. They've added quite a few neat, gadgety things to the design. Their attempt to recapture the sizzle and downplay the practicality. Because really, what sells best in the US? Practicality or sweet, sexy sizzle? With a starting price tag of $22k, it makes a nice, mid-level statement. But when you top it out with all features at $32k, it better have it all! A mpg rating of 51 hwy/48 city ain't bad either.

Hard to believe the Prius is already 13 years old. It was launched to the Japanese market in 1997, and to the US in 2000 as a 2001 model. But after more than a decade, does anyone care who started it?

The new features of the Prius are definitely geared towards the early adopters and the green segment. Toyota knows these are already their primary market, and is working to maintain a strong relationship with that core. Some of the cool new features they've given the Prius can already be found on more upscale cars (think BMW, Mercedes). For instance, gotta get that car into a tight space on the street? No worries, the Prius will parallel park itself, using the Intelligent Parking Assist feature. It can even steer itself at highway speed, using the Lane Keeping Assist system. I wouldn't get overly excited about the LKA, the driver still has to steer, the car applies only slight corrections. So you might have enough time to take your hands off the wheel and strangle your GPS system for taking you down the wrong road before the Prius will need you to drive again. One article I read said that, given enough time, the Prius will begin to bounce from one side of the lane to the other at an angle that can't be corrected, leading it to go into the oncoming lane. But again, don't worry! That's when the Lane Departure Warning system will let you know, YOU NEED TO DRIVE THE CAR.

Safety first could be a motto for the Prius. The 2010 model will include automatic braking. If the car's radar sees something in the path of the car that could potentially be dangerous, it will do two things: 1 - first it tightens your seatbelt (that's nice, like having mom next to you.) then 2 - if you brake, the computer on board will INSTANTLY apply maximum braking force, trying to shorten the stopping distance and prevent a crash. If you don't brake, it brakes for you.

Also new in 2010 will be the optional solar panel. I think this falls into the "that's kinda cool" category, because it only generates enough power to run the cabin vent fans. If it's a really hot day and you're not looking forward to that burning sensation you get on the back of your thighs when you first get in - don't worry! The Prius will have a REMOTE CONTROL air conditioner. Now you can cool your car before you get in, because the a/c will run off the electrical system rather than the fan belt.

Another way they're reducing the power consumption is through LED lights. LED taillights have been around a while, but the Prius will have LED head lights, saving 17% of the power used by high-intensity discharge low beam lights.

Current Prius drivers like driving on electric power alone, so Toyota has given this model an EV-mode button. You can buzz aroud for about a 1/2 mile on battery-only (as long as you don't exceed 25 mph). (To me, this is another one of those - hmm, that's kinda cool...but no giant benefit to the driver).

The 2010 model has a 20% smaller electric motor, power inverter and transaxle than the previous models. But it operates at 650 volts, versus the previous 500 v. There is also a 20% reduction in torque losses.

The 2010 Prius still has an energy monitor feature. Most drivers enjoy seeing where they're "saving". But to get it this year, y0u have to buy the GPS system.

Of course, the Prius also has all the really cool telematics - connections for Bluetooth phone and iPod, an ability to wirelessly stream audio from your mobile device tot he 8-speaker JBL audio system. And the optional navigation system includes real-time traffic information.

Seems like Toyota has once again done a good job incorporating some cool bells and whistles into a modest car, while keeping the price tag relatively in-line for middle America. What will be interesting, is how manufacturers will develop the tools to work on this next generation of hybrids. For instance, did you wake up this morning thinking - I should probably develop a tool to work on the solar panels of the new Toyota? Not only will we need tools for independent components of the vehicles, did you notice the number of "systems" that I mentioned? As these hybrids continue to develop and evolve, I see the need for new tools and equipment to work on them, and new technicians with new skills will be required as well. So, I think the future of the automotive aftermarket continues to hold promise.

On a side note, to Berge and Mr. McClane, apparently others in Akron have found the beauty of the scooter. These were my first attempts at photos while on the move. Now, Akronites can worry about two things - idiot drivers who try to drive while talking on the phone, and me trying to take pictures with a camera while driving. I don't know how I'd react if I saw someone driving their car and taking photos at the same time. It's not like I represent Google Earth or anything...

More on the School of the Year

2009-05-20T08:11:00.002-05:00

Here's a link to one of our reader's blogs. It's a nice piece about the recent School of the Year program.
http://www.facebook.com/l.php?u=http%3A%2F%2Fbcrn.blogspot.com%2F2009%2F05%2Fbutlers-gratitude-to-chicago-pneumatic.html&h=ea7729ea44e6f604a5c8b9f3da9f50f1

2009 School of the Year: Ohio Technical College

2009-05-08T13:17:00.021-05:00

We began the day out in their main parking lot. Where else would you bring 800 students and faculty members? Thankfully, it was sunny and warm, an unusual combination for mid-May in Cleveland, Ohio. Jay Lewis, General Manager of Chicago Pneumatic opened the ceremony with remarks about the incredible application materials Ohio Technical College submitted.

The table in front of the stage holds $10,000 worth of tools and equipment that Chicago Pneumatic donated to the 2009 School of the Year.

Channel 5 News was "on our side". They took a lot of footage and aired a 15-second piece this morning at 6.16 a.m.

That's Rich Evans (of Huntington Beach Bodyworks, check out his website), Jordan Brenner, OTC Marketing, and our local news reporter from Channel 5 Kimberly Gill.

Someone brought in their Ferrari for the day. They forgot to ask if I wanted to take it for a spin.

Another view of the stage/presentation area. Ohio Technical College generated a lot of the signage that was used.

They created this decal for one of their shop cars.

I dropped in this picture of Rich Evan's backside to show off his "sleeves". Note his funky red and black shoes, he designs shoes as well as vehicles. He is a very talented man.

This is one of the instructors and a student handling their new tools. Many expressed real surprise at the light weight of the impact wrenches.

About 200 students sat through a session with Rich Evans. He explained how he started at the bottom, literally sweeping the floor of his dad's shop to earn money and learn the business. He is now custom-designing vehicles, rims, shoes, gloves and more automotive-related products. I like his story - it's got a real O. Henry theme. When we poll our student readers, most say they want to own their own shop someday. I hope these type of events, with Rich Evans and others, continues to inspire young people to follow their dreams.

Five students look on and cheer their schoolmate to a victory at the tire changing competition. The cheers were mixed with quite a bit of trash-talk and silliness. I think everyone had a great time. The best time was 30 seconds to remove all lug nuts, remove the wheel, spin it, mount the wheel and mount the lug nuts!

Here's one of the contestants. I like that he's working with a smile on his face. Probably due to the crazy comments coming from his classmates. They were mercilous!

Before the competition, Rich shared the story of how he began his career, and how he continually strives to be the best, and work towards realizing his dreams.

Rich Evans and Tom King (with Ohio Technical College) watch the tire changing competition.

Ohio Technical College is privately held by the Brenner Family. It was started 40 years ago by Julius Brenner, when he was 50 years old. Today he is 90 years old, and OTC is run by his son Marc (President), and his grandson Jordan handles the marketing.

It was a great way to spend a day. Lots of positive comments about the educational facility and the type of professionals they graduate. Lots of positive comments from the students about their faculty. And they were all just thrilled to receive the tools and meet Rich Evans.

And no one gave me the hook while I was on stage. whew!

Remember to Smile

2009-05-05T12:41:00.005-05:00

I'm preparing to give a speech to 800 students and faculty members later this week. One of our magazines, Tomorrow's Technician, (along with Chicago Pneumatic) is awarding the 2nd Annual School of the Year Award to one very deserving school, and since I'm Publisher, I have the honor of saying a few words to the school's students, faculty, and assorted guests.

I don't speak to large groups very often. I can say without thinking about it for a second, that I've NEVER spoken to 800 people at one time, so this is a real challenge for me. I'm pretty good one on one, or in small groups where I'm training. But 800 people, most of whom are STUDENTS... I'm a little apprehensive I have to admit. Plus, I have 8-10 minutes to fill. My heart just did a double-beat there for a second, just thinking about it.

When I get nervous, or excited, or sometimes just because it's a great day, I tend to talk fast. I don't like to waste people's time, so I try to get through things quickly, sometimes too quickly. I'm sure I'm not the only one who has experienced this. I can usually make a conscious effort to change this, as I read the looks on people's faces. But what do you do, how do you "read" 800 faces?

I don't really know. But today, I finished typing up my speech. I read it through twice on my monitor, then I went to the beginning of the paper and typed these words in big, bold, black type:
TAKE A DEEP BREATH, SPEAK SLOWLY and SMILE.

It doesn't seem like I should have to write these words, does it? But I do, because I tend to speak quickly and I generally look very serious, regardless of the topic. After I wrote that advice to myself, I wrote SMILE every few paragraphs, just to keep reminding myself.

I have a great message to deliver to this audience, and if I don't SMILE, they may or may not hear me.

Smiling comes naturally to most sales professionals, whether they're on the phone or delivering a message in person. A smile is also one of the best sales tools you have, and it's free (no training required, for the most part).

Perfect example of the power of a smile: these two photos of Rascal.
(disregard the drool factor. Rascal had endured the aroma of popcorn...)
If this dumb dog were up for adoption, which one would you consider? Which one makes you smile?

Social Networking thru E-Media

2009-04-07T15:09:00.004-05:00

Everyone's talking about it, or twittering about it, or texting about it. If you're not, then you are clearly outside the demographic. What is this demographic? From what I can see, it's anyone over the age of 5 and under the age of 85.

It began, not that long ago, with teens and their texting (or text messaging as some of you older folks might recognize the term). Once teens fully embraced their birth-given right to own their "own" cellphones, they quickly found a way to make them their own, not just something that mom or dad handed down to them. That was the birth of text-messaging. It occurred about the same time the Blackberry was creating Black/crackheads amongst their parents.

I've spent the past few weeks experimenting with e-media. I've fb-ed, twittered, blogged, texted - you name it, I think I've done it. Haven't quite figured out the big deal about Twitter, but I'll keep an eye on it. My biggest problem is keeping my message to 150 characters or less. (Good thing an editor reviews my printed comments.) Somehow with Twitter, I've already picked up 18 followers, most of whom I don't know.

Facebook is very interesting to me. It began as a way for high school and college students to communicate effectively and easily, and to include photos - something that was missing in MySpace. I read something the other day that said the 40-somethings (my age group) was the biggest group of people on it now, and that people in their 60's and 70's are really starting to drive the average age of the user up. My 77 year old mother has a fb account and uses it to keep up with photos of her kids and grandkids. But, she uses it much differently than her kids and grandkids do. And that's an important point to consider if you are thinking of using fb for viral marketing.

I've created a facebook account for both my magazines, TechShop and Tomorrow's Technician. And I've seen plenty of companies create their own facebook pages as well. There are companies like Sharpie, Crayola Crayons, Peeps, Chicago Pneumatic, Timken, CarMix; and all kinds of schools with pages. I suppose it's a progression from the corporate website. It provides a link to a younger crowd, but it takes a different management style than a traditional website.

I'm still trying to figure out how to use facebook well, in a corporate setting, and I have to admit - don't have any answers yet. But if you have a facebook account, please check out Tomorrow's Technician (both the "person" and the group, and the TechShop group.) Let me know what you think!

Feel Good about Our Industry

2009-04-06T12:41:00.010-05:00

Here's something we can feel good about - one tool company is making an effort to help young people enter our industry. A year ago, Chicago Pneumatic approached us through our magazine, Tomorrow's Technician, to help them develop a way to reach the automotive student. They had identified this part of the market as a critical portion of their business for current and future growth. They knew they were out there, but didn't have an effective way to reach them. They wanted to try something different, in addition to a traditional print ad campaign. Together we developed the idea of a "school of the year" program, one which would take applications and recognize the best automotive schools across the country. In addition to advertising their brand to almost 50,000 students all year long, CP committed to give away $10,000 worth of tools to the top 4 schools. The top school last year was Waubonsee Community College and they were extremely appreciative of the tools they received from Chicago Pneumatic, and the national recognition they received from Tomorrow's Technician.

This year, Chicago Pneumatic really stepped up their commitment to the future of our industry. They bumped the value of the total prize package up to $25,000. At times like this, when most people are finding ways to squeeze their pennies, Chicago Pneumatic is investing in their future, by reaching out to young professionals.

We recently chose the four regional finalists. Selected from more than 170 applications nominating more than 80 schools, the four finalists are Ohio Technical College, Cleveland; Piedmont Technical College, Greenwood, S.C.; Shoreline Community College, Seattle; and Smoky Hill High School, Aurora, Colo.

“We’re looking forward to announcing our winner next month, and we want to thank all of the schools that took the time to submit their nominations for School of the Year,” said Jay Lewis, business line and general manager for Chicago Pneumatic, North America. “The quality of the applications from high schools, colleges and career centers teaching automotive instruction were excellent, making it difficult to determine this year’s four finalists.”
Applications from instructors, principals, department chairs, and students touted a variety of specialized training programs and even a green initiative that was unique among entries. These distinctive programs and specialized training opportunities provide students with defining skills as they enter the workforce following graduation.
“It’s exciting that a company like Chicago Pneumatic has partnered with us to recognize these top automotive schools,” said Beth Skove, associate publisher of Tomorrow’s Technician. “Many of these schools incorporate innovative training programs to prepare their students to be the future leaders of the industry; these young men and women will be influencers in the shop and will help take the automotive aftermarket to the next level.”

The 2009 School of the Year will be chosen from the four finalists and will be featured in the May issue of Tomorrow’s Technician. The four finalists will receive a share of a total prize package of Chicago Pneumatic tools worth $25,000. The winning school will receive $10,000 worth of Chicago Pneumatic tools and a special award presentation event at their school, including an appearance by Rich Evans of Huntington Beach Bodyworks. The three other finalists will each receive $5,000 worth of Chicago Pneumatic tools.

If you are interested in learning how you can be a part of this exciting program, give me a call at 330-670-1234 or email me at bskove@babcox.com.

Leadership: What it takes to get through Tough Times

2009-03-24T13:37:00.003-05:00

Every now and then I check out Bill Marriott's blog. Yes, Bill Marriott as in Courtyard Marriott and Renaissance Marriott, etc. In today's comments, he talks about commitment, and leadership, and what it takes for a businessperson to get through these times and come out stronger and perhaps well ahead of competition. Here is an edited version:

"I've been through eight recessions in my lifetime and, while this one feels deeper and less predictable, I've learned what companies like Marriott need to do to come out strong. Cost cutting is obviously the key to survival today. But the wrong kind of cuts will delay a comeback and erode our competitive position. We need to invest in people, product and service innovation that will reap benefits in the future.

With fewer people checking into our hotels, we've been forced to eliminate some positions. For me, that's the toughest part of the job. I believe sacrifices must be shared and so I've informed the Marriott Board of Directors that I will decline two thirds of my compensation in 2009. All of our senior executives are seeing significant decreases in their compensation as well.

As we think about strength and vitality going forward, I'm also proud to announce some shifts in our management structure that I believe will put us in the strongest position for the future. Effective May 1, Bill Shaw, our current President and COO will become Vice Chairman of the corporation overseeing Global Finance, Owner and Franchise Services, Architecture and Construction, Information Resources and will be Chairman of our Corporate Growth Committee. In his 34 years with Marriott, Bill Shaw has provided tremendous leadership, especially during the past 12 years when he oversaw global operations across all of Marriott's brands. Bill has assembled a first rate management team with expertise second to none in our industry. He has been at my side through recessions in the '80s, the '90s and again in 2001. His wise financial judgment was and continues to be invaluable.

Arne Sorenson, our current CFO and President for European Lodging will be promoted to the position of President and COO, effective May 1. Since joining Marriott 12 years ago, Arne has rapidly emerged as one of the top senior executives in the hospitality industry. He has shown tremendous range and success across a wide scope of disciplines that positions him uniquely for a larger leadership role in our company at a time when both the challenges and opportunities for growth are terrific. In his new role, he'll be responsible for the performance and growth of our brands and businesses throughout the world.

Carl Berquist, currently Executive VP, Financial Information and Enterprise Risk Management, will become CFO, reporting to Bill Shaw. Carl joined Marriott in 2002 after a brilliant career at Arthur Anderson.

The steps we are taking today are important and will put Marriott in the strongest position for a successful future. In these unprecedented times, the company is fortunate to have extraordinary executives who will expand our industry leadership and drive long-term opportunity and growth.

This economy provides a tough environment for any company. But it's a wonderful environment for learning. Over the years, Marriott has assembled a fine team of top executives with tremendous scope and range through a process of rotating them through every part of the business. In fact, our success with this leadership development strategy is profiled in the current issue of the Harvard Business Review.

This economy puts all of us to the test. And yet, I am confident we have the people, the places and the sense of purpose that will prevail. On Inauguration Day, we took out an ad in USA Today to mark the historic presidency of Barack Obama. It listed all the conventional wisdom that has been proven to be wrong in our history:

That you can't abolish slavery.
That you can't give women the right to vote.
That you can't fly an airplane from New York to Paris.
That you can't cure polio.
That you can't put a man on the moon.
That you can't beat the Russians in hockey.
That you can't elect a black man President of the United States.

But we said, "Yes we can!"

That's how I feel now. We're at a crossroads. Things are tough. But when it comes to building a better future, with more opportunity for our associates to welcome millions of guests at more than 3,100 beautiful hotels around the world, I know the answer is: Yes we can!
I'm Bill Marriott and thanks for helping me keep Marriott on the move."

Spring time is Scooter time

2009-03-22T19:26:00.006-05:00

Colt's Foot has just started to appear in certain areas around NE Ohio. It's a sure harbinger of Spring. Took this today while on a hike in O'Neill Woods. From the rocks you can guess it's close to a river. The river happens to be the Cuyahoga.

After spending hours inside today, painting our living room, the lure of warm air and sunshine took hold. The first warmish day this spring inspired me to roll my scooter out to the driveway from behind three bicycles and a bucket of cleaning supplies. I topped off the oil, added a 1/2 gallon of fresh gasoline, wiped the dust off the helmet, put on some warm gloves and my jacket, and away I went. Me and my Vespa took a quick spin around the block. That's my pink Power Ranger jacket. Wear it every time I ride my scooter, even when I'm in a dress or skirt. The one really warm day that I neglected to wear it, I was stung on my chest by some unknown stinger creature. By the time I got to my office, the critter was gone, but it's stinger remained. The stinger was a good inch-long. Within 8 hours, I had a 12 inch area of beet-red, swollen skin. The effects of the sting lasted about 5 days, most of which I spent out of town on business, in open-collar-type shirts. Not an attractive look. So, I wear the jacket.

I have to remember to check the air in my tires. They were up on blocks most of the winter, so the tires should be good. Not sure about tire pressure.

News from the Aftermarket Wire

2009-03-20T12:47:00.003-05:00

R.L. Polk & Co. recently released the results of its market study, titled, "The Changing U.S. Auto Industry - the Impact of Declining New Vehicles Sales on the Aftermarket Business"

In today's AMN, we reported, "As the economic crisis continues and consumers shy away from purchasing vehicles, drivers will hold onto their vehicles longer. In fact, the average length of ownership of both new and used vehicles has increased from 37.2 months in 2002 to 46.3 months in 2008, an 24% increase.

While this increase in average length of vehicle ownership is not good for automakers and dealerships that sell new vehicles, it's positive news for many segments of the automotive aftermarket. Many segments will benefit from increases in the number of older vehicles on the road, especially those in the 11+ age group. As partial proof, stocks for aftermarket repair chains O'Reilly automotive, Advance Auto Parts, and AutoZone have shown strong results so far in 2009.

Polk recently studied U.S. consumers on vehicle purchase plans. 64% of consumers said they were "very or extremely likely" to keep their current vehicle longer than they normally would due to current economic conditions. Additionally, 81% of the 713 interviewed vehicle owners in this same study also said they planned to take better care of their vehicle to keep it running longer, which could translate to additional aftermarket revenue.

As the number of older vehicles on the road climbs and consumers focus more on vehicle maintenance, the aftermarket must be ready to meet the increased need for parts and service, which has implications for inventory management planning. Also, as consumers continue to look for ways to cut costs, retailers targeting DIYers and, to a lesser extent, independent aftermerket repair facilities could stand to gain additional share of market."

After reading this, here's my first thought - does this mean the retailers will expand their DIY section of automotive? For instance, right now Target carries primarily appearance chemicals, wiper blades, car accessories, and fuzzy-dice-type stuff. I haven't been in a K-Mart, TSC or WalMart for years to see their automotive section - so I'm not sure what they carry.

But if this information is true, isn't now a good time to go back to the retailers and sell them the tools and equipment that DIYers will need to perform more of their own work? In addition to the pickup you should start seeing in your traditional markets, this unique situation in the aftermarket provides an incredible opportunity for some tool or equipment manufacturers to branch out into new markets.

You can read the entire 28-page report by going to www.aftermarketnews.com.

Quick Update on Tool Shows

2009-03-16T15:21:00.008-05:00

Laguna Beach, looking south.

David Bonitz, Silvertronics' Director of Sales for North America, shows off the quality of one of his leads to a Cornwell Dealer.
Patrick Gottsch, of CRKT (Columbia River Knife and Tool) had a great display. Knives are a hot item with mobile distributors.

Bill Stemple, VP of Marketing for Cornwell, reviews some of the new features of this Cornwell toolbox.

Spent last week in the West: first half of the week in Las Vegas for the Matco Show, second half in southern California (mostly Anaheim) for the Cornwell Show. Here's the 25 second review:

1 - LOTS of positive comments about business in general at both shows.

2 - was told by Matco personnel that they had strung two months of positive sales together and expected April to continue the trend

3 - was told by Cornwell management that their dealers are paying their bills on time and that technicians are (finally) getting financing.

4 - many manufacturers reported dismal sales since last Oct or Nov, but many were starting to see an uptick in orders. Some of this uptick came in February, some didn't start 'til March

5 - Santa Monica Beach has an interesting pier if you like touristy spots, but Laguna has a prettier beach.

Up is up. I'll take it. More info to follow later in the week.

Short Note Today

2009-03-05T15:02:00.010-05:00

One day ahead of hearing it from everyone in your office, let me remind you that we Spring Forward this weekend. I can't remember if that means we gain an hour or lose an hour. And it doesn't really matter to me because I'll be flying 3 (or will it be 2) hours back in time to Las Vegas on Sunday morning. All I know for sure is that I'll be swapping our old batteries for new in every one of our smoke detectors. (Confidential to First Alert: Your marketing efforts worked on this household!)

This weekend the Matco Tool Fair begins. Next weekend I'll be off to Anaheim for the Cornwell Tool Rally. I've heard through the "grapevine" that Matco expects about 800-850 dealers and Cornwell has about 350 registered. Don't quote me on that though. As usual, I'll post everything new and exciting from the show once I get back.

In other news, at TechShop, we've been working on a new website. It will officially launch April 1, 2009, but you'll be able to see it earlier, by March 16th. Please bookmark the site, because my blog will be moving there and this blog will become inactive. I would hate to lose the few followers I have. http://www.techshopmag.com/ I'll remind you again later. We are also launching an all-new design for the magazine with our April issue. Guarantee you will LOVE it! It makes our competitors' efforts look like grade school scribbles. (Just my opinion.)

It was sunny for about a minute here today and it's starting to warm up finally. The clouds are coming in as I write this, and soon we'll endure a day and a half of rain. Nonetheless, I'm feeling optimistic. I was doing quite a bit of research this morning, and I think it's safe to say that portions of our economy are starting to see a pickup. Walmart and Sam's Club reported a sales increase of 5.1% for this February over last February. And ASA reported that a survey of 8,000 shop owners in 2008 reported a business increase of 16%. Perhaps Spring really is right around the corner, and perhaps the Recession is waning towards Recovery. I will definitely know more about what our automotive compatriots opinions are after next week.

Stay tuned!

Utterly Useless Trivia

2009-03-04T11:35:00.003-05:00

I should save this for a Friday afternoon, but just can't. I am a trivia-junkie. If you are playing Trivial Pursuit, you want me on your team. So, here's some trivia I recently re-discovered:

Category: Science

The speed of sound has often been exceeded by what man-made object that predates flight by hundreds of years?

A: The crack of a whip is the tip exceeding the speed of sound, creating a mini-sonic boom.

Category: History

Where has anyone been able to recieve a free mug of beer and a slice of bread from, since 1136?A: The Wayfarer's Dole is a tradition of the Hospital of the Holy Cross, in Winchester, England

What was the average speed of Lee Petty's 1959 Oldsmobile when he won the first Daytona 500 in 1959?

A: 135.5 mph, finishing the 200-lap race in 3 hours, 41 minutes.

Why is a toy rubber ball enshrined in the Super Bowl section of the Pro Football Hall of Fame?

A: His kid's Wham-O Superball inspired Lamar Hunt to coin the term Super Bowl.

Category: Science

During the winter, you can glide through Ottawa, Canada on the world's longest skating rink. What is it and how long is it?

A: The frozen Rideau Canal. It is 7.8 km (4.5 miles)

What environmental catastrophe left 20 dead and thousands suffering in 1948?

A: An inversion trapped deadly smog over Denora, PA.

Category: Finance

Recessions have many causes. How did a virus trigger the Panic of 1873?

A: The economy collapsed when a virus infected 99% of the horses in America.

What was the first item sold on eBay?

A: Pierre Omidyar sold a broken laser pointer in 1995 for $14.

4 Great Rules of Life

2009-02-23T16:11:00.004-05:00

I came across these in a recent newsletter from our benefits coordinator. They could just as easily have come from my mother or my 9th grade English teacher. They're not earth-shattering, but they're good to remember:

Show up. Be in the room when decisions are made. Be home when you need to be home. Face your responsibilities. (I think they're trying to say, look at the person to whom you are speaking, not at your blackberry, cell phone or computer screen.)
Pay attention. Listen. Look for different perspectives. Stay hungry for understanding and new information.
Speak the truth. Say what is true from where you sit.
Let go. Let it happen. Know what is in your control and what is not. Shrug off the result, looking only for what you can learn. Go forward from there.

I break 3 of these rules more often than I like. I think it comes from being "busy", or wanting to be necessary to someone or some entity. But I keep trying to improve.

And as the Dow reaches its lowest level since 1997, here are some fiscal fitness tips for you to consider:

Don't keep too many accounts. Your investments can get out of control if they're spread over several banks, brokerages, and financial institutions. (However, in my experience, I've consolidated the majority of my accounts under one financial planner..... and it just doesn't matter.)
One person can make all the decisions for your business/home, but other people need to have a working knowledge of the investments and a sense of trust with the financial advisor. (again, in my experience, I've made all the investment decisions for our family, and my husband is aware of "our" plans, but..... it just doesn't matter.)
Share financial goals. Discuss your goals and how you plan to work toward them. My goal was to retire from working some day. (I thought I had been working toward my goal, until today. And now I feel like.....it just doesn't matter.)
Put aside enough money for retirement. Experts say we should all save 10% of our take-home pay. (Can't even comment on this.)
Don't tie up too much money in cash or one type of investment. (ha ha ha.... I'm starting to feel lightheaded from all this great investment commentary.)

I guess today was the wrong day to try to be fiscally fit. Good luck everyone!

Since this is a tool and equipment blog, I'll close with a quote from one of history's most widely quoted, "Anonymous": "You need only two tools: WD-40 and duct tape. If it doesn't move and should, use WD-40; if it moves and shouldn't, use the tape."

Finally - here's a trivia question for you. Is it duct tape or duck tape? Why?

How's Business? Recent Survey Results from Babcox

2009-02-20T13:26:00.008-05:00

We recently surveyed Counterman readers about their current business conditions. Counterman magazine serves the business needs of the distribution channel of the aftermarket, so editorial is geared more towards the jobber, counterperson, or retailer. The survey was conducted in February, 2009. We had 126 responses.

Of the respondents, the majority (71%) classified themselves as a Jobber (NAPA, Carquest, independent, etc.) 20% classified themselves as a WD, and the rest were either a Retail store like Advance or AutoZone, or "other".

How are sales? We all want to know how the other guy is doing before we tell our tale. We asked how their sales in January compared to January last year. 60% reported sales were down, 23% reported they were the same.

How about February, we asked. 52% reported sales were down, 31% reported sales were the same. Oddly enough, for the months of January and February, 83% reported they were even or down. Yet, I take some comfort from the fact that the number reporting their sales were down had gone down 8%. That's a good sign that there is some life in the aftermarket.

What is your forecast for your locations' purchases from suppliers in March compared to March, 2008? 45% reported they would purchase less. But 51% reported they would purchase the same or more than last March. Again, not a bad indicator.

How are your current inventory levels compared to last year at this time? As you might expect, a large portion of the respondents had lower inventory levels (44%). But 33% had the same levels, and 22% had increased inventory.

We're all interested in the end user. Is he buying our stuff? Is he still working? We wanted to know, so we asked, "how does your current wholesale customer count compare to this time last year?" 44% reported they had fewer customers, 46% reported they had the same number, and 10% reported they had more customers than last year.

Last, we asked about returns. Answer this question yourself before you read too much further: What do you think is the industry rate of returns? I thought as an industry it runs about 18-22%. But according to our survey respondents, the total returns as a % of total sales averaged 9.7%. When we conducted this same survey five years ago, that number was 15%. So again, a good sign for our industry. Does this mean all the investments made in automation (from order entry to order processing) is finally paying off? This number includes warranty, cores, etc, so it is very inclusive.

One last thought, we asked them to classify the reason for their return. Cores, of course, accounted for the largest portion of the return - 48%. But the number one reason for a return is still the wrong part was ordered (17%). This was followed closely by warranty/defective (16%), with the wrong part delivered falling to a distant third, just 8%. This seems to indicate there can still be improvement in cataloging (both paper and digital) and training.

What do you think?

I think it's Friday, and Rascal is wondering if he's going to get his toy back.

GM Sheds Some Brands: Good News or Bad?

2009-02-19T16:33:00.005-05:00

According to Edmunds.com, the Los Angeles-based auto research firm, the number one question on consumers' minds (as it relates to GM) is "What happens to my warranty and service cost in the short and long term?"
And the answer is, that GM will probably honor the warranty, even if the brand goes away. After all, they want to keep GM customers happy and coming back for more GM cars, when their Hummer or Saturn finally dies. Philip Reed, Senior consumer advice editor at Edmunds.com addressed this question in yesterday's WSJ. He also said other dealerships would pick up the warranty work at "comparable" prices.
But he didn't directly address the fact that GM also announced they will be closing the Saturn and Hummer dealerships, and quite possibly other GM dealerships as they prepare to shrink and become profitable again. This is good news for the aftermarket. As long as repair shops know what they're doing, and perform the service at a comparable rate, they should be able to generate additional business for their shops as these changes take place. And where will the good GM/Saturn techs go? They'll bring their expertise to the good shops.

Another comment about the Saturn line that came out in the WSJ yesterday is the potential for a Saturn made in China or India. According to the report, the Saturn Dealer Council would be open to selling vehicles made by Indian or Chinese makers that would be sold as Saturns. GM did not comment on any spinoff plans.

Good News for Better Heart Health

2009-02-19T14:07:00.004-05:00

I'm taking a break from reading about and discussing bad news. It feels like there are many things going on in our lives today that are somewhat out of our own control. So today, I only have good news for you, news that you can use to personally become a healthier person today and in the future.

Happy Belated Valentine's Day!

Heart Disease: You can control certain risk factors

Don't smoke
Stay at a healthy body weight
Limit alcohol
Exercise for at least 30 minutes a day
Control your blood pressure
Limit your daily salt intake

Eat right for a healthier heart: this is all the good stuff you should be eating

Spinach and other dark, leafy greens (Popeye was right!)
Fish and shellfish (tho not too much from Lake Erie, or your mercury levels will go through the roof!)
Dried beans and peas (re-hydrate them before eating)
Watermelon and cantaloupe
Soy protein - this can help lower cholesterol
Oatmeal and barley - reduces cholesterol and helps control blood sugar levels
Garlic and onions - I'm Italian - I eat this stuff every day!
Sweet potatoes
Avocadoes
Nonfat milk

Info is from the National Heart, Lung, and Blood Institute

Thanks Mom, Mr. Fruth, Mr. President, and Mr. Anonymous

2009-02-12T11:17:00.007-05:00

This comment from Mr. Anonymous, regarding my earlier blogpost on marketing in a recession led to today's thoughts: Boy (or girl) do I ever agree with you on the strategy for operating a business during a recession. As you say, what I have seen is reduced service and increases in prices. If I was CEO of a consumer product company I would announce a reduction in prices to break-even and push my employees to slobber all over my customers with appreciation. I would commit to doing this for a year and publicize the fact that we are all "in this together" and that this is our way of showing that we care about our customers. Then stand back and watch the doors get knocked down. I would count on people remembering what we did when they needed it most and expect to keep them for years to come. If not I lost a year of profit but I bet that would be all that I lost. I would point this out to my shareholders and suggest that their investment would be enhanced by our action.

I just spent several hours a day, over the past few days, writing thank you notes to many of the people who have spent their company's money with my company, by advertising in my magazines. Thank you notes are my way of "slobbering all over my customers with appreciation". I can't visit them all personally, but I can certainly take a little bit of my time to really thank them. (Confidential to Mark and Jay - yes, you will be receiving one, even though we e-mail regularly, and speak on the phone occasionally.)

Many times we look at business transactions as just that - two cold, unexpressive, simple words "business transactions". But any good business transaction should be much more. (I'm not talking about paying bills or accepting a fee, I'm talking more about the sales experience within a business transaction.)

In my own experience, I have found the majority of my business transactions to be personal in nature. When I sold tools for a living, I made myself get to know my customers on a more personal level. Sure, I loved and believed in my product, but I knew I would never get anyone else to feel the same, unless I could discover what "made them tick". I felt everyone "needed" my tools, because they performed a necessary function, and they could help my distributor's profitability, etc. But there are many times when appealing to someone's basic business sense is not enough, and filling a basic need is not enough. How many times have you had the conversation with a buyer that begins, "you can't pay bills with margin, you pay bills with dollars...." A simple appeal to business sense does not always work.

And in tough times, sometimes a personal relationship makes the difference between a deal or no deal. A lot of times we rely on our sales reps to have these relationships. It is equally as important that strong relationships exist between people amongst all the layers of your business - whether it's a counter person, customer service, sales..... anyone who speaks to your customer needs to have a certain level of personality that appeals to the customer. It's part of the "service" part of any job.

I worked for a small company for a number of years and I credit a portion of my success to my daily reliance on the following principles, principles that were developed by our President, and honed by his staff. They were an important part of our culture.

1 - always treat the customer in front of you like he's the only customer you've ever had, and ever will have

2 - never assume you'll have a customer for life,

3 - always work hard to make doing business very easy for the customer and

4 - never think you're first in anyone's book, because if you're number 2 - you'll always try harder.

I agree with Mr. Anonymous, (paraphrasing him) treat customers right and they'll remember you when they can. To some degree, I think if we all thought of ourselves as being in the business of selling a commodity, as individuals, we would all work a little harder, a little more effectively, to personalize the business transaction. And ultimately, I think it would make for a more interesting and rewarding career.

So - I can't personally visit everyone I want to thank. But I'll start with Mom - Mom, thanks for making sure I understood at a young age the value of a thank you note. Mr. Fruth, thanks for being so tough on me when I struggled with cursive writing. Because of you I have a deep love of learning, and also pretty decent handwriting. Thanks Mr. President, for laying down a good foundation of best business practices for me. And finally, thank you Mr. Anonymous, for reminding us that we are all in this together, and we better start acting like it!

And thank you readers! I appreciate all your comments and look forward to hearing from you.

And every now and then, I'm going to close with a picture of my dumb dog, Rascal.

John Dow Wins a Key Supplier Award from Ford Rotunda

2009-02-11T14:03:00.004-05:00

I missed this last month, but thought you'd like to know! At the 2009 NADA Show, held in New Orleans, John Dow Industries received the Ford Rotunda Key Supplier Award for the sixth straight year.

The Key Supplier Award is given for meeting standards that ensure exemplary service and support to the Rotunda Tool & Equipment Program in the areas of OE Support, Sales Support, Business Alignment, Dealer Service Satisfaction, Supply Chain Management, Product Management, and Marketing Management. This is no minor award, and to achieve it six years in a row is phenomenal.

JohnDow Industries is based in Barberton, Ohio and manufactures a variety of automotive shop equipment and supplies including portable fuel and handling, used oil and fluid handling, vehicle exhaust extraction, and automotive service equipment and supplies. Their brands include Fuel Chief, Crew Chief, EuroVent, JohnDow and Shop RX.

Pictured below is Mark Pfleeger, JDI VP of Sales, accepting the award from Pete Bandowski (Ford TSO Sales & Marketing Manager) and Jeff Sampson, National Sales Manager, Rotunda GSE.
(It is rumored that the two Ford guys were late for their after-show jobs, waiting tables at the nearby, newly renovated Galatoire's on Bourbon Street. - not confirmed)
.

MACS - Mobile Air Conditioning Society in Dallas

2009-02-09T15:02:00.022-05:00

Just back from the MACS Convention, held last Thursday through Saturday at the beautiful Hilton Anatole in Dallas, TX. There appeared to be more exhibitors this year than last year (when it was held in Orlando, FL). Probably has something to do with Dallas being the hometown for MACS headquarters. I also learned that the majority of the mobile air conditioning members (or the industry in general) got their start in the state of Texas.

It also felt like there were more attendees walking the aisles, though I did not get a final count from Marion Posen, with MACS.

Good news: There were a decent amount of new products on the show floor. This generally bodes well for sales success in my experience. Show 'em to sell 'em!

General comments from the exhibitors was positive. Most acknowledged the end of a bad year and dismal January, but were looking forward to better results in February and March, with the second quarter seeing a real (though not dramatic) turnaround.

Here are some of the highlights in photos:

The Welcome Reception kicked off the conference on Thursday evening, with live music played on electric guitar and harp. I did not take this at the beginning of the convention, but more towards the end - that's why it's a little sparsely populated. I was anxious to get to the show on time and forgot to take an "opening" photo.

Atco's booth.

Tracerline's new products were spelled out on this wall chart.

This is a pretty neat air conditioning service system from RTI. This is a private brand model they made for Navistar, but they have the same equipment available in RTI's brand. This particular model has all kinds of bells and whistles - including computer hookup and printout.

Ranshu's booth - don't they look pretty in Pink? They gave up the pink llama, and they gave up the pink cockatiel, this year they added a pink gorilla.

Bright Solutions brought along some new 12 oz. plunger tubes, making a messy job tidier and easier. They launched their new Hybrid PAG. PAG oil is considered better than POE oil for A/C compressors, since it has better lubricity and solubility with R-134a. However, since PAGs are conductive, you shouldn't use them in a hybrid system (unless you're up for a shocking experience). Bright Solution says their new hybrid PAG has the lubricity and solubility of a PAG, but with the low conductivity of a POE. Good stuff for the aftermarket!

A 1967 Jaguar Mark Z

Jaguar Clubs of North America National Champion in 2007 and 2008. It is a beautiful car.

Nick Bush, VP of Sales for Cliplight.

RedDot was well represented.

This was the most beautiful car on the show floor, but I forget what it is. It was built on a Acura chassis, and has more than 450 hp. It was at the show to demonstrate that a car owner can be "green" and still have a sweet ride. The dealership that loaned it out had put a new $1,000 exchanger in it that worked with the combustion to turn gas emissions into hydrogen, thereby emitting ZERO carbons or pollutants into the atmosphere. Very cool. He wouldn't let me test drive it.

Rascal. He wasn't at the show, but just looked particularly stupid this afternoon and had to share.

Who Drove the Excalibur?

2009-02-03T14:53:00.008-05:00

I can't verify it, but I believe the people who drove the Excalibur to Florida from Canada resembled this couple. (Ok, maybe not, since they're decades apart in time.)

For more info on the Excalibur, refer to my post from 1/29/09, Photos from a recent trip to Florida.

The Excalibur began as an old-fashioned touring car with the Studebaker company in 1963. After Studebaker went out of business, Brooks Stevens brought it back to life name of SS Automobiles Inc, where the Excalibur was manufactured for another 24 years.

Confidential to John McLane - this is the image that came to my mind. Close to yours or far apart?

More of Automotive Marketing 101: What do I do when there's a RECESSION?

2009-02-03T11:40:00.006-05:00

I've gone over several key points of marketing during a recession, but I just read an article by Dave Caracci, former shop technician, shop owner, Bosch, ROL and DANA marketing guy, etc, with about 50 years experience in sales and marketing. He is currently Director of the AAIA Car Care Professionals Network and is Chairman of the University of the Aftermarket Foundation. I've known him for several years and I think he's a pretty straight forward guy.

So, why am I telling you this and why should you care? We recently asked his opinion about the best practices a business should employ during a recession.

Here is his (slightly edited) response: "Because I have learned one absolute about recessions, and for those of us who keep this absolute in mind and act on it, this recession can help us succeed. For the smart, hard-working business person a recession is the best time to grow your business. Let me explain.

In a recession, what do most business people do? Cut budgets, cut expenses and reduce service. When your local new car dealership service department does the above, disappointing their good customers, YOU can grow your business. By making sure the dealerships customers think of you as the best and most personal alternative to that new car guy who just let them down. Promote your business by targeting the dealerships customers now, during the recession and when the good times bounce back, you will have a lot more market share. Instead of cutting expenses to the point of cutting sales, you will have grown your business during this recession. Of course, when business is down, we should all watch expenses as carefully as possible. If you can eliminate or reduce an expense, you should. But, NEVER reduce an expense that might reduce sales. That move is the beginning of the end. I know you’ll agree, because I know that you are seeing companies do this already. For example, how about the parts supplier that cuts expenses to the point that they can’t ship you what you need, when you need it? What do you do for the part? You go to his competitor! In fact, I’ll bet you have suppliers calling on you right now that are saying “Hey, give me a chance at your business when the other guy lets you down.” Smart guys! Instead of cutting and hiding until the recession ends, they are growing their business. How about the check-out lane at Wal-Mart? I stopped going there for anything, after they cut so many check-out lanes that it took three times longer to check out than it did to find what I needed to begin with. I don’t care how cheap they price stuff, I’m not going back in there. Bet you’ve heard that same comment about the service writers at your local dealership. Sound like an opportunity to you?
Now for the point of this entire article: We all keep hearing about dealerships closing or at least being in trouble. They may be trying to keep their service business by cutting prices, but if the service stinks or the dealership closes, what good was a cheap price? Many independents are happily waiting for ‘some’ of the dealership customers to drive into their shops. But, for the smart independent repair shops, this recession is the opportunity of a lifetime to grow your business at the expense of the new car dealers. Let’s go after the vehicle owners who have been using that car dealership for service, before the vehicle owner chooses a shop other than yours. I’ll bet you are up for this market share attack.
I’ll bet you are ready to grow your business during this recession instead of cutting and running. But how do you do it? What kind of marketing methods and tools can you use?
Some of you are already doing it. Some of you have already begun to take market share from failing or weakened car dealer service bays. How about helping each other? How about sharing promotion or sales ideas with the other shop owners via the TechShop blog? Share with us what you are doing to take business away from the car dealer. If we act now by sharing marketing and sales ideas, you can all grow your business, at the expense of the new car dealer, during this recession,
It’s your move."

One of Dave's comments that hits home to me right now is "when business is down we should all watch expenses....but NEVER reduce an expense that might result in sales."

Over the past several months, I have heard from many manufacturers AND distributors about the cost-cutting measures being taken to improve profitability. Cutting hours, cutting hourly workers pay, paycuts in general, reducing benefits, reducing bonuses. MANY of these include letting some salespeople go (translation: "Firing sales people"). Here's my question, "didn't they contribute during good times? Isn't the job of a sales person "to increase sales"? A sales person is frequently the most critical part of any sales process. Without sales people, what are you doing to increase sales? (Cuz I can tell you - you ain't advertising in the trade press more than you used to.....)

Also, don't you think the time to evaluate the effectiveness of your salespeople is during good times, so you'll know who to keep when times get tough? I just get the feeling there is a lot of knee-jerk reactionism going around our industry, though I have to say that when you hear numbers like 4,000 and 6,000 people let go from one company, I hope there's been significant thinking done.

One of my former bosses liked to say that anyone not directly involved with manufacturing our product was "overhead" - I guess that was a nice way to say I was expendable. I would disagree, perhaps I was personally expendable, but the position I filled was not. I was there to help create new sales from new markets and generate additional sales from existing customers. My job was to bring the buyers to the sellers. That type of position is still critical to the success of any aftermarket company in business today. Even though we have additional methods of communication and ways to reach the customer that don't always involve a personal touch, there is still a human element involved. People like to buy from people. I would argue that the personal touch is more important today than every before - so think twice before you let your next best salesperson go.

I think I'm starting to ramble a bit, so I should sign off. This happens when I start with someone else's idea and try to mold mine around it. But I thought Dave made some good points and wanted to share them.

In other news, I leave Thursday for the MACS (Mobile Air Conditioning Society) convention in Dallas, TX. Will keep you posted on new products and industry news early next week, upon my return.

If we post any of your comments in the blog, specifically ways you are increasing market share, or taking it away from dealerships, we may print them in the April issue of TechShop magazine as well.

Photos from a recent trip to Florida

2009-01-29T12:14:00.012-05:00

In between business trips to San Antonio for the Mac Tool Fair, Walla Walla, WA for Tomorrow's Technician and Delphi, and an upcoming trip to Dallas, TX for the MACS Conference, I was able to sandwich in a few days for r&r in Orlando, FL.

Just kidding, this isn't Florida. It's Ohio. - this is the snow cave my kids built in my front yard. It reaches eight feet tall at its highest point. Came home to lots of new snow. This is Florida two days ago.

This is an Excalibur that someone drove from Calgary, Canada to Cocoa Beach, FL. As if that is not a crazy feat by itself, check out the next photo.

Apparently they felt the need to drag a big ole trailer with them. This car must have a 12-cylinder engine.

More of the beach.

Bikes on the dunes. That's probably the best way to travel in Cocoa.

Mac Tool Fair - Part Two

2009-01-23T13:50:00.019-05:00

New supplier to Mac Tools, this is Harold Cody of Midwest Tool and Cutlery Company explaining some of the finer points of his snips.

Here's a couple shots of the colorful Mac Tools UK guys: I'm not sure which one is who.....but according to the head guy... There's Richard McGarvey, Marty "Shark Bite" Eatch, Roy "Gay Boy" Farmer, Paul "the Horse" Bloxha, and Slim Matt. Apparently there are some who prefer to remain un-named to protect their innocence.

Zachary Parker of Redline Detection, brought us up to speed on his products, which use smoke to identify exhaust and vacuum leaks.

Channellock's product offering.

Multi-Function tool with LED (but I can't see where the LED is located)

The inimitable and highly promotable Dan Brass, looking quite Veep-ish.

Metric Tap and Die Set

Famous designer, Chip Foose, signing autographs. The line to his table went on forever.

New Mac Tools Battery Charger

More 38 Special

Happy Mac Tool Distributors enjoying 38 Special

One of the buildings at the Alamo. It was built in 1936 and houses a gift shop and museum.

The walkway into the Alamo compound.

Our intrepid editor of TechShop, Jennifer McMullen. Looks like she's thinking about editorial for next month's issue!

Mac Tools Tool Fair 2009

2009-01-19T17:09:00.012-05:00

Some photos today, some commentary to follow later

80's Band, "38 Special", officially kicked off the Tool Fair Thursday night with their own brand of rockin Country. The crowd LOVED IT!.

Quiet and with low vibration, this is the AW612Q in "semi-person".

Mac Tools announced they introduced over 500 new products in the 4th quarter, 2008. This is six of them - various socket sets.

the "Terracuda" rolling toolbox, with orange Barracuda behind. Very cool.

Ryan DeArment, of Channellock, shows off some of his latest made in USA tools.

More of "38 Special". Don't know if they were "holding on loosely" or just "caught up in you" - but for guys that look like they're pushing 60 - they could rock out pretty well.

Steve Handschuh was Right!

2009-01-14T11:38:00.004-05:00

At the AAPEX Show in Las Vegas last year, Steve Handschuh stood up in front of hundreds of aftermarket professionals and made his predictions about the prospects for the aftermarket in 2009. I wrote about his comments earlier in this blog. I just wanted to confirm that Steve was right! He said we would have a cold winter and by golly, he knew what he was talking about.

As I look out my window, watching another 2 - 4 inches of snow fall, on the 12 inches or so that is already on the ground, and I bundle up in my coat, hat and scarves, and crank the cranky engine of my car..... I say to myself - this is good for my business!

Steve Handschuh, President and Chief Operating OfficerAutomotive Aftermarket Suppliers Association, Vice President Motor & Equipment Manufacturers Association
Steve Handschuh is the president and chief operating officer of the Automotive Aftermarket Suppliers Association (AASA) and vice president of the Motor & Equipment Manufacturers Association (MEMA). AASA, a market segment association of MEMA, exclusively serves and represents North American aftermarket product manufacturers.
As AASA president, Handschuh provides general oversight of all the association’s organizational management. He represents its members on critical business issues by generating dialogue, education and action, which helps provide a stronger, unified voice for aftermarket suppliers.
Additionally, Handschuh provides leadership, direction and administration for all aspects of AASA activities, and works closely with the AASA Board of Governors to maintain a strong focus on providing services and programs that address industry issues and offer members opportunities to advance their business.
An automotive aftermarket industry veteran of more than 30 years, Handschuh served as senior vice president, commercial, at AutoZone. Prior to AutoZone, he worked for NAPA AUTO PARTS/Genuine Parts Co. for 18 years, including serving as NAPA president from 1998-2004. Handschuh began his career as an outside salesman at Mighty Auto Parts where he rose to the position of vice president of sales and marketing.

Mac Tools' Tool Fair

2009-01-12T16:01:00.006-05:00

It's mid-January, time to head to someplace warm and start the rounds of tool shows. This year, we begin with Mac Tools' Tool Fair, being held in San Antonio, TX. It won't be warm, exactly (50-60 during the day, 35-40 at night), but it will beat the single-digit temperatures here in Ohio, and the ten inches of snow awaiting me outside my doorstep.

It should be an interesting show - on many levels. We all know the parts side was hit hard in the 4th quarter, 2008 with all the OEM issues. But now, with the rumored and actual layoffs, and the rumored and actually reported sales declines we've seen come through the tool side of the industry for the past several months, some manufacturers have expressed their concerns (to me) about the number of distributors that may actually attend. And of those attending, how many will be in the mood to spend money on increasing their inventory?

I think distributors and vendors should approach the tool shows from this perspective: It is an opportunity to learn about existing and new products that should enhance the profitability of their company. In my experience, these tool shows (whether they're Mac, Matco, Cornwell, Snap-on, ISN, K-Tool, M. Eagles, Mid-States, you name it...) are the BEST place to share product knowledge and to educate the person who is closest to the end-user, about all the reasons why they should carry a certain product. Period.

Yes, I realize tool shows were probably begun for one reason - to sell more stuff. I mean that is the reason we're all in for-profit businesses. But the opportunity to sell more stuff is greatly enhanced when you educate your sales partner or your customer. People need an understanding, and a level of comfort in order to adopt new ideas (and new products, and new ways of doing old jobs).

If you are a professional marketer, you probably have education, advertising, sales materials, trade shows and packaging all wrapped into your marketing plan. What? You don't have a specific bucket for education? Probably not. Why? Because you use your advertising, sales materials, trade shows and packaging to do your consumer educating for you. You can't reach out and physically talk to every potential or actual customer of your product, so you use your marketing tools.

Consider this tool show, and all the other tool shows you'll attend this year to be a valuable tool in your plan. You are spending money to attend. Make the most of it.

These distributors come to the show looking for new products, or new ways to help their customers be more profitable. In many respects, you can help them be more successful in 2009 simply by educating them. You won't have to sell a thing.

I'll be bringing my camera and doing my best to capture the events of the Tool Fair. Look for a new post early next week or shortly thereafter. Next week, off to Walla Walla, Washington (the town so nice you have to say it twice.)

A Time to Give

2009-01-07T15:23:00.008-05:00

One of our sister publications, Tomorrow’s Technician, sponsors a “School of the Year” program every year with the kind assistance of Chicago Pneumatic. It is open to High School and Post-Secondary automotive/collision and/or diesel training facilities. We reach out to our readers and ask them to tell us why they should be called the “School of the Year”. We choose four schools from across the country. This year we received more than 100 nominating letters from our readers! Chicago Pneumatic awards thousands of dollars worth of tools for prizes to 3 runners-up schools and one grand prize winner to recognize their excellence.

This year, as I read through the stack of applications I am struck by the similarity of the sentiments expressed and written over and over, by students and instructors across the country.

A couple of general themes emerge,
1 – lack of support at the local school or government level
2 – lack of new tools or equipment to train with
3 – the incredible dedication of the teaching staff
4 – the educational level of the teaching staff (most are ASE Master Technicians in many areas of expertise)
5 – the love these students feel for their chosen field of work. These young people are excited to come to school to learn more, and excited to begin a career in automotive.

I could go on about all the interesting things they say, but I would prefer to let their own words speak for themselves. And then I would encourage you to consider this question: What am I doing to bring quality people into our industry? Whether you’re an independent shop owner, a technician, a manufacturer or someone else involved in this industry, it is up to us all, individually to do our best to bring in the next generation of professionals to the automotive aftermarket.

"My school not only teaches us how to repair and diagnosis vehicles, it also teaches us employability skills. This school has done more for the community and its students than any I have sseen. The school teaches work ethics that coincide with the regular curriculum, has the computer lab for Key Train students (so that they can be leaders in their workplace), helps with local community outreach programs for disadvantaged families, helps their students excel in studies by a workplace atmosphere, 100% enrolled in Skills USA and knows most of their students by name and face. Teamwork, leadership, and unity are everyday events at our school. We have been taught to help not only our classmates but our community in everyday situations. " Student at Tennessee Technology Center in Dickson, TN

"I think my school should be named school of the year because our teachers teach us everything we need to know about our chosen career fields. Our school can really use the tools also. I am enrolled in the auto-body class and we have a shortage of tools. Everybody in my class needs the tool that someone else has. Thank you for your time." Student at Terrebonne Vo-Tech HS

“This is my second year teaching. When I started I was given a empty shop and classroom. Since I have restored this class, we do work just like a bodyshop. At the start of my second year, my class had the largest number of students sign up out of the whole school. In previous years the number of students that dropped out was very high. This year so far I had 1 drop compared to 8 my first year at this time in the school year. I think my students have come a long way and they deserve the recognition.” M. Pennison, Instructor at Terrebonne Vo-Tech HS

“Since our school is new, we don’t really have enough money for the programs so we can’t really expand our knowledge without spending a little money. Please choose our school because we will be very gracious that you blessed us with the money for our Transportation program. If you don’t, I will understand because there are a lot of other schools that are in need of money with the economy being screwed up. So good luck in finding the winner!” Student from East Career and Technical Academy in Las Vegas, NV

“Our goal is to provide the most up to date, current educational processes and techniques for our automotive technology students and prepare them for this ever changing industry. But it is our focus on the education of the whole person that makes the larger difference. I must say that our department chairman would literally give a student the shirt off his back to help keep the youth in school. The compassion, care and dedication here is something not seen in many post secondary settings. Young men and women are being molded and shaped to be accountable, productive, skilled, active employees and citizens of their prospective communities. We strive to instill in our students the importance and privilege of education and self pride in themselves and their work. We help students stand up straight with their shoulders back, look the world in the eye, set a goal and go after it. We also teach the concept that all persons need to be proeductive and active members of their communities.” C. Stenseth, Aims Community College, Ft. Lupton, CO

“Our school should be school of the year because our teacher is awesome and plus we need some new tools. He is a very hard worker and teaches us everything about the automotive field. We don’t have the support from the school district to get new tools. It would be the best thing that ever happened to our program. We would really appreciate it if you would pick our school to be School of the Year.” Student at Laurens District 55 HS

“My school should be named because our auto shop program is one of few in our country. The program is quickly dying out. Our shop is underfunded, has no support from the school. We have old tools, a lot broken or missing. Our teacher puts his heart into teaching us to good technicians and be successful in life. We also have two after school clubs Skills USA and Terrier Tech Race Team, which is where we build a 1931 Model “A” Ford from the ground up and the five students that do the most work and put the most hours into the car get to go to Springfield, MO to race in the Hemmings Challenge. All of that is done out of his pocket and fund raising. The school only lets us use the shop, they put no support into it.” Student at Titusville HS, in Titusville, FL

“The recent addition of the Heavy Equipment degree option allows students to obtain specialized training which prepares them to work on construction equipment – a field that is teeming with employment opportunities both regionally and nationally. The college has also joined forces with Fabick-Caterpillar and students who complete this degree option are prepared to apply for an internship with this major regional employer. Fabick has clearly indicated they are looking for our best and brightest. Southeastern's program boasts ASE Master Mechanic instructors, a Smart classroom, a computer lab and a shop floor equipped with Mitchell 1 ON-DEMAND 5 software, which increases technicians productivity.” R. Lindhorst, Instructor at SE Illinois College

"Alleghany High School is one of the smallest high schools in the state of North Carolina and yet we maintain the highest automotive test scorres in the state. We are also NATEF certified. Alleghany High is located in a rural community but is able to have an active advisory committee that supports the auto tech program completely. at Alleghany High we embrace technology by keeping up with up-to-date scan tools and by using online reference materials. we are also experimenting with the capabilities of hydrogen fuel and we manage all of this with little to no money. We think that our school deserves to win this because although we try to keep everything up-to-date, we can not afford everything." Student at Alleghany HS, Sparta, NC

“To ensure industry standards are truly replicated, the automotive, collision and diesel technology programs are NATEF and AYES certified. Unfortunately, due to the cost of today’s high-tech equipment, the vast majority of CTC students are trained on obsolete equipment. However, NMTCC has entered into a unique industry partnership with Hunter Engineering. At no cost to NMTCC, Hunter has outfitted one of the automotive technology labs with every piece of high-tech equipment they manufacture, exposing our students to the same state-of-the-art equipment/technology they will utilize in the workplace.” B. Lacivita, Instructor at N. Montco Technical Career Center

If you’ve read all these comments, you’ll probably agree that we could all do more to help the future technicians of our industry.

I'm excited to see that some of the bigger names in our industry like Caterpillar and Hunter have stepped up to the plate and help out on a local level. And, on a local level, I would encourage you to reach out to the automotive, collision, and diesel educational facilities in your area and find out what more you can do to bring young people into our industry.

If you want to reach a broader market of young people, I would encourage you to consider becoming a co-sponsor of the Tomorrow's Technician School of the Year program. (Talk to your Babcox sales rep about it.)

Imagine what could be done for so many automotive students if a tool manufacturer, and a diagnostic company, a safetywear company, a lift company, a smoke detector - name it - if more tool and equipment companies could come together to support the future of our industry. The cost is not great, but the returns are immeasurable.

These students are the future of this business and deserve your attention.

Hump Day Humor

2009-01-07T13:21:00.003-05:00

Gallery of Regrettable Food,

I came across this site on another blog and spent way too much time looking through it. I think it started out as a review of 1950's commercial cookbook art, and evolved into something much more. Most of these dishes are before my time, but I bet some of you out there in the blog world actually ate some of this stuff or quite possibly served it at parties.

I couldn't resist posting a photo of the "meat jello". That just goes beyond words. I hope you take a few minutes out of one of your days to review the gallery of regrettable food. There are some unbelieveable foods and descriptions that defy the modern stomach. The cookbook art is interesting as well - plenty of perky women set to serve their BBQ-grillin men. Very 1950's dream world, but I'm not sure how much was a true reflection of reality (I wasn't around).

And in case you're wondering, I think Knudsen's Dairy Products still exists, in San Diego, CA. Well.

And yes, I realize this has nothing to do with tools, techshop, or the automotive world. Sometimes, that's just how my day goes.

Happy New Year!

2009-01-05T13:28:00.003-05:00

Old year 2008 is now a not-so-distant memory and we can begin afresh with 2009. Although I am personally optimistic about the prospects for this new year, I can't discount the bad news that is already beginning to be reported. This afternoon, Ford announced their sales were off by 32% in December. At the end of the week, we'll hear the latest on U.S. unemployment, and it is not likely to be a good report.

That being said, I would like to reiterate some of the good signs we are seeing for the automotive aftermarket for 2009:

There are still more cars being driven on the road today than at any time in the U.S. history. At some point, they will all need some sort of service - whether it's tires, brakes, air filters, oil changes - at some time this year they will require the expertise of an aftermarket professional.
New Products are still being developed and brought to market for this industry. I will be at the Mac Tool Fair next weekend and I guarantee there will be dozens of new products to review that were not available as recently as the AAPEX Show.
Consumers are holding onto their vehicles for longer periods, and need to keep them running for longer periods. This is good for the aftermarket.
Winter has just begun in some places and has already created quite a bit of "opportunity", due to ice storms, snow storms, and generally messy weather. Thank you Mother Nature.

Again, it's quite early in the new year, just 5 days into it and my first day of work - so... Here's my prediction for 2009:

Expect the first quarter to be down double-digits if you are in the distributing or manufacturing sector. (Here's a plug for advertising - if you want to take market share from your customers, now is the time to advertise your brand, your product, your name - all professors of marketing 101 will tell you this is sound logic, though your accounting department might have a tough time approving the expenditure.) Layoffs will continue into February, then taper off as companies find a new proift equilibrium for their business.

Good independent repair shops should see solid business opportunities throughout the year, as will the auto dealers who pay attention to their market share and bottom line. There is no question that we can expect several hundred car dealerships to close up shop this year. We are "over-inventoried".

By the 2nd quarter, we should start to see the distributors and manufacturers pull up from their dark pit of slow/no sales. Though it will be slow, I believe we will start to see growth again by the 2nd quarter.

And on an entirely random note, Pat Hingle (also known as Commissioner Gordon in the Batman movies) died today at age 84. Why mention him in this blog? Well because his last role was in an automotive-related movie: Talledega Nights: The Ballad of Ricky Bobby. So, he was a friend (0f sorts) of the industry and we will miss him. Sleep well Commissioner Gordon!

One-Liners for a Gray Day in December

2008-12-17T15:47:00.007-05:00

It's grey, cold, icy and snowy here in NE Ohio and we're about to commence with a company Christmas party. So before I leave my desk and head down to the festivities, I thought I would share these one-liners from repair orders, courtesy of Andrew Markel at Brake & Front End. Who knew technicians had a sense of humor?

Service Advisor: Dead bugs on windshield

Tech: Live bugs on back-order

SA: Evidence of coolant leak found on passenger floorboard

Tech: Evidence removed.

SA: Customer can not turn on car.

Tech: Can I see the customer?

SA: Brakes make the car stop suddenly

Tech: That is what they were designed to do?

SA: Volume of tire noise unbelievably loud.

Tech: Tire noise volume set to more believable level.

SA: Suspect worn brakes

Tech: Suspect you're right.

SA: Driver says the engine missing.

Tech: Engine found under the hood after brief search.

SA: Vehicle handles funny.

Tech: Vehicle warned to straighten up and be serious.

SA: Heater fan hums.

Tech: Replaced with heater that knows the lyrics.

SA: Mouse in engine compartment.

Tech: Cat installed.

SA: Noise coming from under instrument panel. Sounds like a dwarf pounding on something with a hammer.

Tech: Took hammer away from dwarf.

(I just envision that little guy from the Blue Nun commercials hanging out under my hood now...)

Increasing Market Share - One Customer at a Time

2008-12-16T14:00:00.002-05:00

There are examples of good marketers all around us. Some are in our industry, some are outside. Anytime you see an example of good marketing, I think you should take a minute or two to examine their success, and see if there is a way to turn their experience into something you can use in your own business.

Shaw's Auto Care, a little independent repair shop in Cuyahoga Falls, OH, has a nice little thing going. A Babcox colleage recently referred a friend to Shaw's for some minor automotive work. She needed a front exhaust pipe replaced. I don't even know if the invoice exceeded $250. But she received excellent service and came back to the office and reported her pleasure with the work she received.

Ok, end of story?

No.

Today, my colleage received in the mail, a $10 gift card for Wendy's (home of the old-fashioned hamburger). This amounts to maybe 4% of the total bill that Shaw was paid.

But what did Shaw receive in response to their 4% investment?

1 - 1 happy customer who told at least 1 other person about her experience.

2 - 1 happy long-term customer, who told at least 1 other person about the gift card

3 - 1 publisher who thought this was an inexpensive, but effective way to build customer loyalty.

In theory, if that 1 customer experience, combined with the $10 gift card, turns into one additional $250 sale......that's a 98% return on Shaw's investment. We should all be so market-savvy.

This experience reflects both excellent customer service and excellent marketing. Make your customer happy the first time with your service. Keep them coming back for more, by remembering their loyalty. How can you apply the same principles to your business to increase your market effectiveness?

Open Letter from a Ford Distributor

2008-12-10T16:32:00.006-05:00

This Ford dealer (Pittsburgh region) really puts into words everything many of us are feeling…whether you agree with him or not, it's a great letter! Please share this with your friends and family. www.theintermountain.com http://theintermountain.com/page/content.detail/id/513450.html?nav=5011#

Editor: As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right between the eyes.

The fate of our nation's economic survival is in the hands of some congressmen who are completely out of touch and act without knowledge of an industry that affects almost every person in our nation. The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of millions of viewers.

Sen. Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you are the dinosaur, with ideas stuck in the '70s, '80s and '90s. You and the uninformed journalist and senators that hold onto myths that are not relevant in today's world. When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S. GM was the world's No. 1 automaker beating Toyota by 3,000 units. When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers. Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the Corolla and Chevy's Cobalt beats the Civic.
When you ask how many times are we going to bail them out you must be referring to 1980. The only Big Three bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid.
When you criticize the Big Three for building so many pickups, surely you've noticed the attempts Toyota and Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight years Ford's F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see the new '09 F-150 you'll agree this won't change soon.
Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.

It's 2008 and the quality of the vehicles coming out of Detroit are once again the best in the world. Perhaps Sen. Shelby isn't really that blind. Maybe he realizes the quality shift to American. Maybe it's the fact that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is more concerned about their continued growth than he is about the people of our country. Sen. Shelby's disdain for "government subsidies" is very hypocritical. In the early '90s he was the driving force behind a $253 million incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge loan the Big Three is requesting will be paid back, Alabama's $180,000-plus per job was pure incentive. Sen. Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation because of lack of knowledge and lack of due diligence in making your opinions and decisions.
After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus emergency vehicles to the recovery efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip!
We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently. While the governments of other auto producing nations subsidize their automakers, our government may be ready to force its demise. While our automakers have paid union wages, benefits and legacy debt, our Asian competitors employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in 2010, many lawmakers think it's not enough. Some point the blame to corporate management. I would like to speak of Ford Motor Co.
The company has streamlined by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally and the best auto company management team in the business.
The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700 billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the country's largest industry, there is obviously oppositions. But does it make sense to reward the culprits of the problem with $700 billion unconditionally, and ignore the victims?
As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business with. A Chapter 11 bankruptcy by any manufacture would cost retirees their health care and retirements. Chances are GM would recover from Chapter 11 with a better business plan with much less expense.
So who foots the bill if GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent of repayment. So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is definitely better for the taxpayers and the economy of our country.
So I'll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to misinform the American public and turn them against one of the great industries that helped build this nation, I must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits for 1 million retirees, eliminate 2.5 million of our nation's jobs, lose the technology that will lead us in the future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately? Jim Jackson Elkins

Why Advertise in a Recession

2008-12-10T16:12:00.006-05:00

Well, now that the Senate has declined the opportunity to extend a loan to the Big Three, you may be wondering - what the heck will my business look like next year? As I've said before, I don't believe the future of the aftermarket is all gloom and doom. Yes, our economy is a little shaky, but people still need to get their cars fixed. And tools will break, and worn-out equipment will need to be replaced.

How do you get your share of the sales? Besides continuing to improve on your "blocking and tackling" I would put forth another recommendation: look at your advertising and improve upon it in 2009 to gain market share. It's easy for me to say - just advertise more.... but it is not that simple. You truly must examine your message. Is it still right for current conditions? Does it say what you want to express to your customers? Will it help sell more tools or equipment? Does it meet your needs? If not, you need to adjust.

Today, there exists a large body of data that clearly shows there is a direct cause and effect of increasing or decreasing advertising during recessionary periods. In summary, they show:
• Advertising builds brand strength: Companies that invest more in advertising over a period of years experience faster growth than those that spend less.
• Advertising speeds recovery: Companies that have increased their advertising during a recession have recovered more rapidly than their counterparts that have maintained or reduced advertising.
• Advertising affects sales: Organizations that have continuously increased their advertising investment have enjoyed similar increases in sales. For example, Meldrum & Fewsmith Advertising and the BPA studied 64 business-to-business companies that advertised during a recent recession. Thirteen firms cut advertising an average of 20 to 50 percent during the two years of recession, while the remaining firms increased their advertising investment 30 to 70 percent during the period. Those firms that increased their advertising stance not only continued to grow but also grew at a more rapid rate when the country's financial picture improved. This growth was achieved in both sales and net income. The results have been similar in every advertising investment study conducted since the 1920s.

The first study, conducted by Roland S. Vaile, covered advertising and sales of 200 firms between 1920-1924. He concluded that a definite spread occurs between sales of firms that increase their advertising and those that decrease it. He added that, when intensive advertising during the depression was part of the sales technique, sales were maintained in better volume than when advertising appropriations were cut.

Recessions and Competitive Edge
For more than 80 years, advertising agencies and publications have been telling client management that a recession provides a unique window of opportunity for those firms that are market driven. Marion Harper, former president of McCann-Erickson once said, "A time of recession is the most favorable time for a change in competitive positions. Companies that are second in their fields, by applying extra pressure and devising creative strategies, can gain advantages that they can carry into times of prosperity. Whatever their position, if companies wish to be growth companies, they must certainly behave like growth companies." Charles Brower, former president of BBDO, stated, "Instead of waiting for business to return to normal, you should be cashing in on the opportunity your overly cautious competitors are creating for you ... the fact that your competitors are pulling back can make your advertising dollars look and act even bigger. There are few things as detrimental as a lapse in advertising. It costs much more to get advertising momentum up than it costs to keep it going. Once you let momentum die, you must start almost from scratch again."

The producer who maintains his or her normal level of promotion when competitors have reduced theirs soon finds that they gain a similar increase in competitive share of market. It provides a rare opportunity for management to change market position. Then when business improves, they will grow at a much higher and more profitable rate. One of management's most important roles is to exploit competitive opportunities. While most management teams tend to hold off on being aggressive until all of the marketing variables are favorable, this action puts you right back in the middle of the pack so that you are competing with all of your competitors.

Taking this approach, some of your advertising investment is an expenditure since you have to vie head-to-head and toe-to-toe with your competition rather than taking advantage of opportunities. In today's refinement of marketing warfare, the winner is the one who takes optimum advantage of every strategic and tactical marketing blunder by his or her competition. The smart marketeers acknowledge that economic cycles are elements in the marketing battlefield that have to be used to advantage if the firm is to improve its position and increase marketshare.

Back To Basics

2008-12-10T15:00:00.005-05:00

The Smith Center High School football team has won 51 games in a row and has outscored opponents this season, 704-0 (2007).

Blocking and Tackling. Blocking and Tackling. If you have a team that can conquer the basics of blocking and tackling, chances are you'll win most of the games in which you compete.

When we talk about the basics of marketing and selling strategies, we begin with research and planning. My dad used to say, "you'll never know where you're going without a roadmap." It's the same for sales growth, and marketing research can help you determine your path.

Your research should help you:

find out what customers want and expect, in both a product and a purchase experience

find out what customers like and don't like about your company, product or services

find out what they would like to experience in a product or purchase

determine what is working/not working

determine the age, gender, lifestyle etc. of your customer

determine what is working/not working for your competition

determine who your competition is different from you

determine your competitor's long-term plans

As part of your research, do an internal SWOT analysis with your management team, and with your sales and marketing team.

With your research completed, you should be able to assemble your sales and marketing team to review the results, and then write a marketing plan that addresses your customers desires and competitive issues against your company goals. The physical action of writing a marketing plan requires your team to think about your overall sales, marketing and profitability goals, and determine the best way to meet those goals. This research and planning period will also provide direction as you consider the tools you'll need to use to meet your goals: advertising, sales promotions, POP materials, employee training, PR and community relations.

Use your marketing plan to outline how to leverage what your customers want against what you want (increased sales and profits). Your marketing plan should help you determine if you need to target segments of a market or investigate new markets. It should help you understand the best approach you should take to build your brand in a market.

After the marketing plan is complete, the next step is to outline your communications plan, and the budget required to support it. This budget should include marketing communications such as advertising, promotion, publicity, and trade shows.

Marketing plans should be carefully planned to acheive both your short and long-term sales goals. They should be flexible, so they meet the changing needs of your customers' needs and wants. But they should also be fairly well fleshed out, so you guidelines that are easily understood and undertaken by your entire sales and marketing team.

Once you've finalized your plan, communicate it to your team. In an average economy, this time of year can be challenging in our business. Given our current economy, now might be the right time to upgrade your sales team. I've heard many manufacturers and distributors are letting sales people go and not replacing them. I think that's a big mistake. (You needed sales people last week, but all of a sudden today you don't?) I wouldn't advocate keeping someone on because they've always worked for you. You need the right people on the bus, and they need to be able to perform the right functions. If they can't, stop the bus and ask them to get off......With the average cost of a business-to-business sales call costing over $500 (double the cost of 5 years ago), and on the average, each sale requiring at least five sales calls* - you need to be confident you have the right salespeople in position. *info courtesy of b2badvertising.org

In today's industry, advertising is being used to assist in reducing the overall cost of doing business. The average cost of a business-to-business sales call has risen to over $500 (double the cost of 5 years ago), and on the average, each sale requires at least five sales calls. If advertising can substitute for one or more of the personal sales calls, the effect can be accomplished for pennies.

Perspective on Salaries

2008-12-08T08:49:00.005-05:00

In 1815, U.S. senators made $6.00 per day, representing their constituents. By 1817, their salaries were raised to $1,500/year. By 1983, the salary was $69,800, and by 1993 it almost doubled to $133,600. Today it stands at $169,300. The 100 U.S. Senators represent the entire U.S. population of 305,835,798 (living in the U.S. and abroad).

In the last period reported (2007), GM's G.R. Wagoner Jr., was paid $1,558,333 in salary, and an additional $12,857,581 in stock, options, and incentives, for a total gross income of $14,415,914. I think he'll be ok with making $1 in salary next year. He (and G.M) represent hundreds of thousands of working, middle-class Americans, that are manufacturing stuff. Not just cars of course, but they represent machinists, and printers, and parts manufacturers, etc. With all the tier one and tier two suppliers underneath the car manufacturing industry, newspeople tell us one out of ten people's lives are touched by these guys.

The top 3 highest paid celebrities made $410 million last year. Oprah Winfrey grossed $275 million. Tiger Woods made $115 million and Angelina Jolie made $20 million. Oprah and Tiger represent themselves. Angelina represents Brad and her 6 kids.

And let's look at Forbes' Top 50 Wealthiest people in the U.S. With a net worth of $59 billion, of course Bill Gates still tops the list. He develops software and hardware and has most of it made overseas. Number two is Mr. Warren Buffett, at 77 years old he's worth $52 billion, all made by investing. Number three is Sheldon Adelson, worth $28 billion. At 74, he's Las Vegas's biggest bigwhig (though I guess not so big since the stock market tanked and he's having trouble filling his Venetian hotel with guests, even at $149/night). In the entire top 50 list there is only ONE MANUFACTURER represented, and it's Nike at number 30. Mr. Philip Knight is worth a paltry $9.8 billion. (And where does NIKE make most of their stuff?......)

My point is this - in the tool world, and even more specifically in the automotive tool world, there aren't many of us who will ever be "rich rich". There's no question you can make a great living in this business. We'll do well. We'll raise families, send our kids to school. We're all pretty much workers, trying to get ahead in this world by providing a product to a technician or shop that we feel will help them do their job faster, better, safer or more efficiently. You won't read about us in the gossip pages, and you won't see us hanging out with Paris Hilton or Barack Obama or the soon to be former Governor or Illinois.

But if you look at the people mentioned above, where does their value to the American people truly lie? And are they compensated justly for the "job" they hold? What are your thoughts?

(I apologize for the weird layout of photos. I have not mastered the art of dropping photos in throughout the posting. Need an advisor for that.)

A Smart Start to 2009

2008-12-04T11:16:00.006-05:00

As we have all heard and all said, these are unprecedented times in business.
We all read the news about how bad business is and hear about budget cuts and layoffs.
It makes us think about our approach to selling ads and how aggressive we should be in asking for the order.

In Today's Ad Age email was a guest article from an agency exec to other agencies.
I thought the following words could/should be adapted for any of us who write orders and sell stuff. (Italics and bolds are my edits.)

He writes, "Don't be afraid to sell stuff. Our clients sell stuff. Our job is to make sure they sell more of it and sell it more profitably. Retail drives the sales. Branding drives value and profit -- it's really that simple. It's your job to be nimble and savvy enough to see what's not working, pull it and replace it with something that does work, and you do it as many times as necessary to serve your client. If you are embarrassed to admit you sell stuff, you may as well get out of the business because my agency -- and those that think like us -- will run your ass over. The common logic right now is to retreat. And the common result is decreased budgets and, in turn, decreased sales, share and profitability. If you get caught in this downward spiral instead of working to stop it, you're finished. "

I'll repeat his words, Branding drives value and profit.

And I have to rephrase his comment - History has shown that if you foldup your tent during tough economic times, chances are you won't have a place to unfold when good times return. Why? Because the people who push forward, the people who don't give up, and the people who advertise, are the ones who will be successful. And they will take market share from those who hide behind budget cuts.

(Classic historical example is Post cereal v. Kelloggs in the 1930's. One was the premier cereal company in the world. One was number two. Number One quit advertising during the depression. Number Two did not. By the end of the Depression, Number Two had risen to become the Number One cereal company in the world, and the former number one? Well, they never fully recovered. You can tell which one won the fight by checking out the cereal aisle the next time you're in the grocery store.)

Tool & Equipment Trends - According to our Readers

2008-12-02T11:28:00.010-05:00

A couple of weeks ago I reported on the "lifestyle" of today's technicians. Today, I can share the results of our survey on Tools and Equipment. These results reflect the shop owner's experience, not the technician. I have to apologize ahead of time for the manner in which I'm sharing this info - it was a little tough to pull into a cohesive format.

We surveyed the readers of our TechGroup magazines: Underhood Service, Import Car, and Brake & Front End in order to collect up-to-date information on the types of tools and equipment found in independent repair shops. This is another important distinction to make - this information all comes from independent repair shops - no dealerships. We also measured the importance of various attributes affecting tool purchases and the sources of information that shop owners use when they make their purchasing decisions.

Surveys were mailed in September, 2008, and the responses were compiled in October. Once again, I'm just going to share the highlights. A complete copy of the survey results can be made available on request. Of course, I can never resist editorializing as I go....

86% of our respondents were either the owner or partner, 12% were managers
81.4% have complete purchasing authority on new auto service equipment, 12.2% share the authority with others
Average dollar value of all personal tools used professionally is $65,300
Average amount spent on tools each month is $455

We asked, "where do you receive the MOST information on new tools?". 73% said from Trade magazines. The next largest percentage was 17% from mobile distributors. Websites only scored a 2%, and the manufacturers' website scored 0%. I found that VERY interesting. On one hand, good for me because it means our readers still find quite a bit of value in our magazines, and (hopefully) so do our advertisers because their message is being sought out in trade magazines. On the other hand, possibly bad for the manufacturer who has invested quite a bit of $$ in their website, and they may or may not be getting a good return on their investment. You decide.

What makes a technician or shop owner buy a tool? Do you think it's brand, where it's made, price?

According to our readers, the BRAND drives their decision most often. Our readers specify a particular brand frequently or always 73% of the time. If they don't specify, it's because 77% know the brand the vendor will supply.

What helps drive a tool-buying decision? Number one answer is warranty, followed by brand, then availability.

When asked what the 3 most important purchase factors were after brand, 92% chose quality, followed by warranty and then competitive pricing.

Where do they buy their tools & equipment?
57% of their purchases are made from mobile distributors, 14% are purchased from tool & equipment WDs, and the other 29% is dispersed amongst retailers, full-line WD, online, direct from the mfg, and from dealerships.

Have their purchasing habits changed? For a few - yes. 17% have decreased their purchases from the mobiles. While 33% have increased their purchases on-line. (I would still guess that on-line purchase amount is small compared to the rest of their purchases, but can't substantiate my gut feel.)

Specific Product info

Battery chargers, compressor, tool box/cart - in 90% or more of the shops
Pneumatic tools, test equipment, shop lights - in 82% - 86% of the shops
Lifts, specialty hand tools, specialty sockets/wrenches and diagnostic tools are in 79% of the shops surveyed
23% had hybrid specialty tools and just
19% had flash reprogrammers

And the answer to my favorite question, "Would you find a Buyers Guide of Tools and Equipment useful? 87% said yes, and most said they would hold onto it for 6 months or more. Music to my ears, because we're getting ready to go to press with our 2nd annual Buyer's Guide early next month. And we're the only publisher in the industry that has a printed (as well as on-line) version. After all, our customers are still finding most of their product information from the printed page!

One last comment about this segment of our readers, they reported that they typically spend 46% of their time diagnosing and repairing vehicles. Even though they own multi-bay shops, and they employ 2 or more technicians, they are still spending an incredible amount of time IN the business, versus working ON their business. Only 8% of their time is spent meeting with suppliers. If you are a supplier to this market, you need to understand that as you go forward in your marketing plan. They see a supplier less than 40 minutes/day - and that "supplier" could be a sales rep, a mobile distributor, or a factory person. Ask yourself this question, When you are not in front of them, what have you done to make them remember you?

More Economic Theory

2008-11-25T16:36:00.003-05:00

I'm not an economist by any stretch of the imagination, but I enjoy reading and hearing what people think about our current economic situation. It's all part of my ongoing education.

Since most respondents to our current survey don't believe the U.S. Government should bail out the Big Three Carmakers, I thought you might be interested in this viewpoint from the Misess Economics Blog (can be found at http://blog.mises.org/blog) (I thought this was an Austrian economic think tank, but it's actually located in Auburn, AL., it merely works to "advance the scholarship of liberty in the tradition of the Austrian School" and honestly - I'm not really sure what that means..... But I still found the entire article interesting.

Best Explanation in One Sentence
November 25, 2008 3:08 PM by Jeffrey Tucker

From Llewellyn Rockwell in this piece: "If the money is used to prop up failing companies, that's particularly bad since it is an attempt to override market realities, an attempt that is about as successful as trying to repeal gravity by throwing things up in the air."

For me, reducing economic theory to a one-sentence anology is overly simplistic, yet sometimes quite effective. For a more in-depth analysis, go to the blog. One reader's response was interesting, he said, it's like giving heroin to a heroin addict and expecting him to change.

Thanksgiving Travel - The driving decline continues

2008-11-24T10:48:00.005-05:00

Our friends at AAA have forecast a small decline in the number of Americans traveling during the Thanksgiving holiday weekend. This would be the first decline in Thanksgiving holiday travel since 2002 and the fourth consecutive holiday this year with a year-over-year decline.

Some 41 million Americans are expected to travel 50 miles or more from their homes for Thanksgiving weekend — a decrease of 600,000 travelers, or 1.4 percent, from last year’s total of 41.6 million travelers. (but really, who counts them once you're past the 40 million mark?)

More than 33.2 million Americans, or 81 percent of all holiday travelers, are expected to travel by automobile. That’s a 1.2-percent decrease from the 33.6 million people who drove a year ago. Even with the recent decline in gas prices, people are still reporting they're going to stay home.

Who will travel and where will they be?

Southeast: 8.8 million
West: 6.9 million
Midwest: 6.5
Great Lakes: 6.1 million - I think most of these 6.1 million people will be on I-71 along with me and my family.
Northeast: 4.8 million

Whether you're going over the river and through the woods to Grandmother's house, or staying home, best wishes for a Happy Thanksgiving. Safe travels wherever this week takes you!

Our New English Language

2008-11-19T15:34:00.002-05:00

I have two teenage sons, so I have become quite proficient at how to spell now (the close of 2008, the dawn of 2009). You remember the old, "if you can read this, thank a teacher"? It's now, "f u cn red ths, thnk a tchr." Yes, it gets a little under my English graduate skin to even type that out but, if it saves money while texting, I'm all for it. I'm not lol.

Where I have to draw the line though, is when I see, read about, or hear adults making up new words. One of my least favorite is "incentivize" or "incent". Neither are real words. The word, incentive, is a noun meaning to "incite some type of change or behavior". Let's leave it alone, please. Find a real adjective to suit your subject matter.

But what got me going on this topic today was an article I saw recently in Ad Age magazine. The article presents a review of a recent discussion amongst ad agency personnel at a CMO Roundtable a the Association of National Advertisers annual conference in Orlando, FL. Apparently, they expressed concern that many of their clients are increasingly bypassing their usual media and creative agencies and instead, turning to media companies (perhaps like Babcox?) for creative marketing ideas. So far, the topic doesn't bother me too much. But then, this:

"If I were an agency, I would be really worried about being disintermediated," said Becky Saeger, CMO of Charles Schwab and new chairman of the ANA. "more and more, agencies are almost in the way sometimes."

Now, I know as a Publisher I should consider the content (which I find very interesting actually). But as a person with an English degree and a lifelong interest in language, the fake word, DISINTERMEDIATED, really ticks me off. For clarity's sake, say what you mean and mean what you say. Did she mean to use the word, disinter (to dig up) or maybe disintegrate (to separate into components) or disjoin (to disconnect) - which is probably close to what she meant. Or, perhaps she meant to say, "If I were an agency, I would be really worried about being FIRED."

Please - don't send me any e-mails with made up words... Or if you're going to make up a word, at least use a little creativity! Just because you add a prefix, a suffix, or an -ly at the end doesn't make it a word!

And don't think this is a rant against ad agencies - because it is not. We work with some excellent agencies that are very creative and bring a lot of great ideas to our clients. I like the idea of working with an agency and a client together. That triumvirate can generate a lot of new ideas and can move in directions that neither one individually may have considered.

Just........I'm able to handle the text-spell, just QUIT MAKING WORDS UP!

If you really feel the need to use new words, then check out the Chambers Dictionary online. I think I'll stick with Websters.

And don't even get me started on all the new names for people that seem to have come into being over the past decade or two. K?

thx. TTFN

Profile of Today's Technician

2008-11-19T09:03:00.014-05:00

We recently conducted a survey of the readers of our TechGroup magazines, specifically skipping over the shop owner and going directly to the technician. Today, I'm going to outline the "lifestyle" of today's U.S. automotive technician. Check back later for an overview of their tools and equipment purchasing trends.

Our methodology: We mailed and collected the responses to our survey from mid-September to mid-October, 2008. Our objective was to gather informaton on the demographics and lifestyles of professional auto repair technicians. We have a professional research team on staff here, so it was not just me and couple of local auto techs sitting around shooting the breeze. We're serious about research..... (though I realize you may be wondering why there's a picture of Mickey Mouse in an article about research. more to come on MM.)

In order to keep this a quick read, I'm just going to list some of the highlights of our research:

Our respondents have been technicians for an average of 20.9 years, with 33% being in the business for 26 years or more.

The majority of our respondents have been working at their current location for over 5 years, with the average being 11 years.
46% of these technicians began working in the business by the time they were 18 years old. The next largest category (10%) began at the age of 19. (Good reason for you to consider advertising to student technicians today - they start young and stay in the business for a looooooong time.)
63% hold ASE certifications, with an average of 5 certifications each.
For those technicians paid hourly, 32% have an hourly rate of $16 or less, while 21% cite an hourly rate of $25 or more.
The average number of hours worked per week is 44.4
The average age of our technicians is 41.8 years old. 68% are married. When asked how many more years do you expect to remain an automotive technician, the average answer was 13.1 years.
38% are HS graduates and 30% went to technical or a trade school.
Our technicians own or lease an average of 3.9 vehicles, with cars/light trucks/SUVs making up 88% of their vehicles. Others are motorcycles, RV, motor homes, snowmobiles, ATVs.
What do you think technicians like to do in their spare time? Well, according to the survey, their favorite passtime is fishing (46%), followed by boating (32%) and travel (28%). Surprisingly, just 22.5% enjoyed motorsports as a leisure activity (why do so many manufacturers spend so much money to support motorsports then?) Only 11% enjoy golf. (of course, perhaps a lot more of them golf, but only 11% enjoy golf.)
Internet use - 93% have access to the internet (70% have access both at home and at work).

Then we asked them some broader industry questions and asked if they agree or disagree.

Here are the areas where they strongly agree: The shop where they work is a decent place to work (that explains the length of time.); There is a shortage of trained technicians.; It is difficult to keep up.

They were more neutral about their opportunity to advance in the industry and some apparently feel the public doesn't respect their skills (something we all need to keep in mind as we work to promote our industry both within and outside of our business networks.)

Finally, 53% indicated they might change careers. Of those, 42% would remain in automotive, but not as a tech, 26% want to become a shop owner, and 32% would seek something outside the automotive field.

One final note: Happy Belated Birthday Mickey Mouse! Yesterday was the 80th anniversary of Mickey Mouse's appearance in Steamboat Willie. 80 years, several modifications, and solid marketing........ today Mickey Mouse is one of the most recognizable brands/images on the planet. Even though his primary target market is children, people of all ages, income levels, lifestyles, and education recognize the black mouse with white gloves (and MM is rarely if ever confused with Michael Jackson, who is a person (not a cartoon character) known to wear one white glove from time to time.) That is great branding - no matter how you analyze it.

Coach: a private instructor; to train

2008-10-31T15:24:00.003-05:00

Coach Ernie Pantuso - who didn't love him? I guess you could say the same about Knute Rockne, but I never saw him in action. Never even saw the movie about him. But, I saw Cheers plenty of times with Coach at the bar, always ready to give someone a boost, a pat on the back, a shoulder to cry on, or just a good friend to listen to. Slow as he could be at times, everyone liked Coach, and he liked everyone back. Even Carla Torelli never had a bad thing to say about him.

At any given time in our careers, we may have the opportunity to be a coach to someone in our industry. That person may be older or younger. May have a little or a lot of experience. May have a different viewpoint. May not be a good fit for the business at all, but you're stuck with them. Coaching is tough - whether you do it for pay or for more personal reasons - being a good coach can be very difficult, and also very rewarding. And unlike the Coach from Cheers, not everyone may like you as a coach.

Here are some observations I've made of good coaches I've experienced in my own career:

A good coach should look for ways to develop their people. Once you've recognized a potential for leadership and determined the skills and abilities necessary for growth in a position, help that person develop those skills. You should work with that person on an appropriate development plan that includes constructive feedback. Always hold people accountable. A deadline is a deadline, not an option. Reward and recognize success, analyze and improve on failure.

A good coach should be able to delegate responsibilities. Your people can't grow and develop if you give them a project then look over their shoulder 99% of the time. Believe in your employee's ability, and then give them the leeway to be successful. Provide a guideline, but use one without a garrot at the end.

Excellent communication skills are really critical for a good coach. You have to be a good listener because you have to teach your people to listen well. Another important aspect of a coach's communication skill is the ability to stay positive. Without being a "pollyanna" a good coach can stay positive under pressure and lead a team to success. Even in times like these.

Can you be a good coach if you're not a good decision maker? Simply, no. Make a decision, set a course of action with appropriate timelines, and accept responsibility. Anticipate needs and any changes and take action when necessary. Be prepared to change. Keep the right people in your organization in the loop! One coach I had liked to say, "I can take bad news, but I don't like surprises."

The hardest thing about being a good coach is - many times you have to coach a person without them knowing it. Sometimes you will have a formal coaching session, but usually you won't want to sit down with someone and begin a conversation with, "so, today let's talk about goal-setting....." Pretty obvious eh? So - practice your coaching skills. A good coach is a good leader, and leads to a good organization. If you're better than good, it won't be long before the performance of your company improves as the people you coach improve.

And my favorite Coach quote (though not for business use):

COACH: Can I draw you a beer, Norm?

NORM: No, I know what they look like. Just pour me one.

Wal-Mart Gets Healthy and Goes Green!

2008-10-27T15:10:00.002-05:00

Interesting news from Wal-Mart (if true, and if they hold their suppliers to these standards). No other single retailer could pull this off - if they do manage to make these changes, it could affect the way China does business with all countries, across all types of manufacturing. It would definitely be good for the consumer, and better (than now) for the environment. Considering the magnitude of their supplier base, a 2-year roll-out seems aggressive. They have already pressured their suppliers into certain environmental improvements (well, they've turned out to be good for the environment, but the driver was cost savings.) For example, the smaller bottles of laundry detergent that you're seeing on store shelves, thank Wal-Mart. They needed to reduce the cost of overseas freight per piece, so they directed their suppliers to concentrate their liquid and package it in something smaller..... The power of Wal-Mart....

Wal-Mart Imposes New Safety, Environmental Standards on China Suppliers
The world's biggest retailer, Wal-Mart, last week announced strict new corporate social responsibility guidelines for the Chinese companies that produce the products that it sells. The new guidelines, which will raise quality control standards and adherence requirements for national environmental laws for suppliers, were implemented in the wake of ongoing quality and consumer-safety concerns with Chinese-produced goods.

Wal-Mart is viewing these measures as a way to allay consumer fears over the safety of Chinese products on their shelves. The company stated that they will not buy from companies that do not comply with the new practice standards. Companies dealing with Wal-Mart will also be required to list the names and addresses of all subcontractors – the small factories where quality and safety concerns can often originate.

The new process will begin on Jan. 1 and will be phased in over two years. Additionally, Wal-Mart is holding suppliers to increased energy efficiency measures in hopes of improving energy efficiency by 2012.

Highlights from Snap-on's 3rd Quarter Results

2008-10-24T09:23:00.002-05:00

Here's the detail you won't find on the wire services:

Snap-on Announces Record Third Quarter 2008 Earnings
Diluted EPS of $0.94 increases 34.3% over $0.70 earned last year; Sales increase of 2.5%; Expects continued year-over-year earnings improvement for balance of 2008
Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, diagnostics, equipment, software and service solutions for professional users, today announced operating results for the third quarter of 2008.

"We are very encouraged by our third quarter results, especially given the current global economic challenges," said Nick Pinchuk, Snap-on's president and chief executive officer. "We continue to focus on fortifying our already strong business models, pursuing geographic and customer diversification, and driving our value creating processes, including innovation and rapid continuous improvement. These are the activities that have created the string of encouraging results over the last few years and we're confident they will serve us well going forward.
"The global economic challenges have made forecasting uncertain," said Pinchuk. "Snap-on, however, remains positive looking forward and believes that continued execution of our core strategies will support improved year-over-year earnings again in the fourth quarter. Finally, as we report these results, it's clear that the progress would not be possible without the dedication and support of our franchisees and associates. I thank them for their extraordinary contributions."

Highlights of Snap-on's third quarter 2008 operating results are as follows:

Net sales of $697.8 million increased $17.1 million, or 2.5%, over prior year, including $12.1 million from currency translation.
Gross profit improved to 44.7% of net sales in 2008 from 44.2% in 2007;
Operating expenses improved to 33.0% of net sales in 2008 from 34.4% in 2007.
Operating earnings of $86.4 million increased 19.3%, or $14.0 million, over prior year; currency translation contributed $0.3 million of the increase. As a percentage of revenues, operating earnings improved to 12.1% in 2008 from 10.4% in 2007. For the nine months ended September 27, 2008, operating earnings improved to 13.0% of revenues, as compared to 10.7% in the year-ago period.
Net earnings of $54.6 million increased 32.8% from $41.1 million in 2007; diluted earnings of $0.94 per share increased 34.3% from $0.70 per diluted share in 2007.
For the twelve month period ended September 2008, pretax return on invested capital was 22.0% as compared to 18.4% for the comparable 2007 period. Pretax return on invested capital is defined as earnings before interest and taxes divided by the quarter-end average of shareholders' equity and net debt.
Commercial & Industrial Group segment sales of $338.1 million were up $10.2 million, or 3.1%, from prior year.
Excluding $12.4 million of currency translation, sales declined $2.2 million year over year as continued growth in emerging markets, contributions from increased sales of power tools, higher sales of tools, kits and tool storage products to industrial customers, and continuing strong sales in our innovative, imaging aligner units were more than offset by lower sales of professional tools in Europe and by sales declines in other wheel service equipment worldwide.

Operating earnings of $40.7 million increased $8.0 million, or 24.5%, from prior year as contributions from higher pricing and savings from ongoing Rapid Continuous Improvement (RCI) initiatives were partially offset by the lower level of organic sales and commodity cost increases. As a percentage of sales, operating earnings in the quarter improved to 12.0%, as compared with 10.0% a year ago.

Snap-on Tools Group segment sales of $269.5 million increased $7.5 million, or 2.9%, from prior-year levels; currency translation contributed $0.4 million of the sales increase. Higher year-over-year sales in the company's international franchise operations were partially offset by a 0.3% decline in U.S. sales.

Operating earnings of $28.2 million were up $3.6 million from prior-year levels. Contributing to this increase were higher international sales, benefits from RCI initiatives and lower franchisee termination costs in the United States. These increases were partially offset by the impacts of a less favorable sales mix and $5.0 million of higher material and freight costs. As a percentage of sales, operating earnings in the quarter improved to 10.5%, as compared with 9.4% a year ago.
Diagnostics & Information Group segment sales of $155.1 million were up $3.1 million from prior-year levels primarily due to higher OEM program sales as a result of a new essential tool program in North America, increased sales of diagnostics products in Europe and higher sales of Mitchell1(TM) information products. These sales increases were partially offset by lower sales of diagnostics products in the United States and by lower sales at Snap-on Business Solutions, including expected lower sales from the planned exit of certain non-core product lines.
Operating earnings of $27.2 million were up $5.0 million from prior-year levels primarily due to benefits from RCI initiatives and contributions from the higher sales. As a percentage of sales, operating earnings in the quarter improved to 17.5%, as compared with 14.6% a year ago.
Financial Services operating income was $4.8 million on $18.0 million of revenue, as compared with $5.6 million of operating income on $15.8 million of revenue a year ago. Contributions from higher revenues in 2008, primarily as a result of lower market discount rates, were more than offset by higher year-over-year operating expenses, including $1.4 million of one-time, project-related costs.
Outlook
Snap-on intends to continue investing in its strategic growth initiatives aimed at expanding value provided to its traditional customers, penetrating new and adjacent segments, and extending its presence in the emerging markets of Asia/Pacific and Eastern Europe. Snap-on also expects to continue implementing its RCI and low-cost sourcing initiatives intended to provide higher levels of profitability.
Based on current expectations, Snap-on expects that its earnings for the balance of 2008 will continue to exceed 2007 levels. Additional detail about Snap-on is also available on the Snap-on Web site.

Overall, Snap-on has posted decent numbers for this tough U.S. economy. And it appears they plan to maintain current initiatives to continue their growth plans.

Distribution Models for a New Century

2008-10-20T14:25:00.009-05:00

What is the best way to distribute goods from a manufacturer to an end-user?

But first, some history of the automotive aftermarket: Back in the day, the tools and equipment were made in a small factory or machine shop, and the owner/general manager/sales manager loaded his products into the back of his car or truck, and made a week-long trip around a territory, selling as much as possible to the shops and technicians along his route. Upon his return home, he'd either make more stuff, or his partner would have it made by the time he got there. He'd load up and start all over again.

At some point, a middle-man sprouted. This middle-man was the jobber. I'm not sure, but I think the first mortar-and-bricks jobbers were a small group of NAPA stores, and the first mobile jobber, was Cornwell. The main difference between mobile jobbers and brick and mortar, is that the mobile jobbers generally sprang from their own manufacturing facility. As their business grew, mobile jobbers added products from other manufacturers. Both types of jobbers offered the manufacturer a a benefit in the distribution channel. They could receive larger quantities of goods at a time, and take on the expense of selling them to the end-user themselves because they built in a resale margin.

As time passed, warehouse distributors sprang up across the nation, offering the manufacturer even greater economies of scale. Now the manufacturer could ship a whole truckload of goods across the country and get paid for it immediately. A manufacturer could open up brand new markets, practically without even trying. All you needed was a good warehouse distributor with a decent market of jobbers - primarily brick and mortar. In the meantime, the mobile jobbers set up their own warehouses and increasingly supplemented their manufactured hard goods with supplied tools and equipment.

This model worked great in the 30's and 40's. Interstate roads and highways were being built. Greater distances were being covered more economically than any other period in our country's history. Cars and trucks were being driven and needed to be fixed. This model worked even better in the 50's,60's, and 70's. More miles were being driven, more roads were being created, more people were being created and more cars were being sold. It was a great time to be in the automotive aftermarket. No matter which end of the spectrum - it was all good!

Then came the 70's. OPEC, inflation, return of the VW, launch of Datsun and Toyota, gas shortages, conservations efforts. (And let's not forget - flared pants with white belts that had holes going all the way around your waist.....) (ok, let's forget the belt)...

Reality: In 1979, the average car owner in Ft. Worth, TX paid $.78/gallon for gas. By 1989, that price had gone up to $1.09, and nationwide the average was $1.28. We all know where it is today.

In the 1980's, distribution changed modestly. Retailers saw the automotive aftermarket and decided they wanted a piece of it. Remember Auto Shack? Bad old Radio Shack said they couldn't use that name, so Auto Shack became AutoZone. Sure there were regional retailers - Pep Boys had strongholds on the east and west coasts, but AutoZone came in determined to go nationwide. It was about this same time that we began to see "buying groups" organize. (call them what you will, that's my name for them).

I would argue that the late 70's and into the early 1980's saw changes that dramatically affected our industry, but many people in manufacturing and distribution failed to see the significance. So the manner in which we distributed goods and services to shops and technicians at the birth of this industry, did not change much during it's "turbulent teen years".

Uh - oh - Here comes Al Gore and he invents the world wide web. Now, we add the internet to our distribution model.

We thought the markets were mature then. The question is, now that the markets are REALLY mature, and many levels of distribution have saturated the U.S., will the model from the 30's and the 60's and the 80's continue into the mid-2000's? Should it?

Part two - to come. Stay tuned.

Jack's Yamaha

2008-10-10T16:32:00.002-05:00

a reader sent in this picture. See his comments from an earlier blog. Sweet ride, eh?

Now EVERYONE will be Riding a Scooter

2008-10-08T16:21:00.003-05:00

How to buy a scooter for your Commute
Want to save a ton of money on gas? Get out of your car and on a scooter

Liberated from an article by Laura T. Coffey on MSNBC.com (edited by and additional commentary by me in italics.)

The economy is tanking. Bleak financial headlines are bombarding us every day. And on top of everything else, gasoline prices continue to be painfully high. (Though not as high as last week!)
If you’re on the prowl for ways to save as much money as possible right now, you may be among the growing numbers of consumers who are showing an interest in scooters. Of course, depending on the weather where you live, a scooter might not be a viable year-round answer for you — but get this: A cute and trendy scooter can cost as little as $4 to fill up. Just $4! (That's because they typically have a 1 to 1-1/2 gallon gas tank. My Vespa scooter gets about 60 mpg.)
Intrigued? The following tips can help you reflect on the pros and cons of owning a scooter.

1. Think about safety. Be aware that you could be putting yourself in serious peril for this simple reason: Many drivers of SUVs and other large vehicles will have a hard time seeing you. And driving a scooter in severely foul weather also can be dangerous. If you live in the Sun Belt and you’re willing to be serious about safety precautions, though, you could conceivably drive a scooter year-round. (I have ridden my scooter in the rain exactly once in three years. The end result was a soaking wet white t-shirt on a middle-aged woman. It was not pretty. I do not recommend driving in the rain.)
2. Do what you need to do. If you’re still interested in a scooter despite the risks, wear a helmet for protection – even if you’re exempt from doing so – and take a motorcycle safety course. For details on courses being offered near you, contact your state’s Department of Motor Vehicles or Department of Highway Safety. (I agree.)
3. Reflect on your commute. Are highways and other busy roads unavoidable, or could you travel on side roads with speed limits of 40 mph or less? This question will prove to be of huge importance as you shop around. (My route to work is exactly 3 miles, with no roads whose speed exceeds 40 mph.)
4. Are you new to two-wheeling it? If so, a scooter can be less intimidating than a motorcycle. Because it doesn’t have a clutch, you can just twist and go, and depending on the size of the scooter, you can get anywhere from 50 to 100 mpg. On the down side, scooters with smaller wheels can feel unstable when pushed to their top speeds, and only larger scooters can handle highway trips. (Piece-o-cake to master. Electric start, no prob.)
5. What will you need to carry? If you think you’d ever want to drive with an extra passenger on board, check specifications carefully to see how much weight the scooter can handle. Also make sure the scooter has enough cargo room to store all your stuff. Be aware that you may end up needing an add-on rack or top box for extra storage. (Forgot about carrying a passenger on any of the smaller scooters. You'll easily lose 5 - 10 mph due to the extra weight.)
6. Check out major brands. As you shop around, test drive scooter models with track records of reliability. These include Honda, Yamaha, Suzuki, Aprilia and Piaggio (LOVE PIAGGIO - maker of the VESPA). Make a note of how comfortable the seat is, how effortlessly your feet reach the ground and how easily you can move the scooter forward and backward while seated.
7. Know the rules. There’s a big difference between a scooter and a bicycle that’s propelled by pedals and an electric “helper motor.” You typically won’t need a license to ride an electric helper-motor bike, which usually can’t go faster than 20 mph. In many states you will need an operator’s driver license, tags and registration for a scooter, which generally displaces less than 50 cc. If the engine of your two-wheel ride is more than 50 cc, you’ll likely need a motorcycle endorsement on your driver license or a motorcycle-only license. Check with your state’s Department of Motor Vehicles about the specific rules where you live.
8. Invest in insurance. It may only set you back by about $100 a year – revealing yet another way scooters help drivers save money. The coverage is worth the price, especially because scooters can be quite easy to steal. (And as my insurance agent told me, you really don't have to worry about collision, because it's doubtful you'd survive.)
9. Buy the right gear. In addition to a helmet, you also may want to opt for a full-face shield for protection from wind, rain, bugs, small rocks and dust. Brightly colored, motorcycle-specific clothing that you wear over your street clothes can help you to be more visible to other drivers and can protect you from road rash in the event of an accident. (I've got a full-face black helmet and a hot-pink power rangers jacket for protection and warmth.)
10. Make parking plans. Check on the rules for parking scooters at your place of employment and near your home. Street parking may be an option for you, but you’ll have to weigh the risks of the scooter being defaced or knocked over. Also, some parking garages won’t allow scooters at all, and if they do, they may charge the same fees that they charge for regular cars.
Sources and resources
Consumer Reports’ Cars Blog
American Motorcyclist Association
Associated Content
© 2008 msnbc.com