"We will not forget those who helped us!"
 

A journey of a thousand miles begins with one small step. Joey Gagliano, Chalmette Collision, Chalmette, Louisiana, has completed step one as he sits in his "new" office, ready for orders to start pouring in to the shop he is rebuilding after his original facility was destroyed by Hurricane Katrina

Steve Bohte, Mike and Jerry's Paint And Supply, Jefferson; Joey Gagliano, owner, Chalmette Collision; Brandon Hummel, painter, and Michael Quinn, chair, Collision Industry Relief. Hummel received spray guns and paint blocks from Collision Industry Relief so he could go back to work.

These were the words Joe DiFatta, DeRussy Motors, Waveland, Mississippi, told me this past January at his shop. This statement is now being echoed by countless other collision repair shop operators as they attempt to recover and re-open their businesses after Katrina's devastation.

 t is after all human nature to help those in need? Right? Or do profit and loss statements and stockholders expectations cloud a company's ability to reach out and help? Should a long-term customer that normally paid their bills on time expect any special treatment after such a catastrophe. When people reach out for help, does the almighty dollar reign or do common sense and decency prevail? These are all questions and values put the test post Katrina.

Given the response to Hurricane Katrina, shop owner/operators feelings are mixed. But one thing is for sure, those challenged with rebuilding and re-opening their shops will be loyal to those that helped them far into the future.

Drowning in paperwork

One major problem that shops are tackling is trying to settle business insurance claims. Shops are embattled over coverage questions. Insurers debate whether damage is flood damage or wind damage while shop owners burden the cost of rebuilding on their own. Cash flow has been a problem for operators to re-open and re-establish themselves in the marketplace. Unless one has an open line of credit or many tangible assets, pulling one's self out of a long-term closure can be very challenging and unfortunately many will probably not recover.

Many of the major paint companies and their local jobbers immediately came forward and helped their customers. Word is the auto insurers paid the shops fairly for work in progress and parts. Our industry rose to the occasion and formed Collision Industry Relief to help our brethren in need (www.collisionindustryrelief.org).

However, too many other organizations did not or hesitated to offer assistance.

"Our data base provider sent late notices and threatened to send our account to collections," commented Mike Pike, Pike's Collision, Slidell, Louisiana. "Yes, we received disks every month but we could not write any estimates for over six months. I was seriously considering the competition. How could they not know the challenges we were faced with? Finally common sense prevailed and they waived eight months. We opened two weeks ago."

Paul Reynolds, body shop manager, Mossy Motors expressed: "Our body shop was one of only six open in the New Orleans area. We had insurers contact us about being Direct Repair Providers for them. We had to think, where were they prior to Katrina? We chose to take care of the insurers who believed in us all along. We will add the other carriers when we can. It was our turn to show them our loyalty."

This idea of being loyal is a two-way street. What goes around comes around.

Calvin Schenck, CarCraft, Chalmette Louisiana, used what leverage he had left. "I was frustrated with a local family-run GM dealership. I had been buying my parts from them for over 38 years. They cut me off (COD) after falling three months behind." Well, Schenck paid his bill and now does business with another company. His GM parts business was estimated to be around $300,000 per year.

Sears steps up to the plate

Another shocker. None of the mobile tool companies offered assistance to our technicians. You know the trucks that stop by every week and drop off tools and collect checks from technicians. A gulf coast shop owner had this to say. "We were very disappointed with the companies that make their living off the backs of our technicians."

After no commitment from any of the major tool suppliers, we turned to Sears Craftsmen tool division. They came forward and gave us deeply discounted pricing on starter tool sets for metal technicians. I tell everyone I know to do business with Sears to thank them for supporting our colleagues in need.

As the Gulf Region comes back, those that make it will be stronger and bigger than before Katrina. And Joe Difatta was right - collision repairers will remember those businesses that helped them. And that, Mister Stockholder, you can take to the bank!