Lack of standards hampers the automotive glass aftermarket industry
The automotive glass aftermarket industry is unique in the automotive repair market. A niche business with calculated net revenue of $350 million, it has no ties to either the collision repair or automotive replacement parts industries, the two largest national automotive aftermarket segments.
The industry also remains unregulated and has two independent trade associations: The National Glass Association (NGA) and the Independent Glass Association (IGA). Both offer features that benefit their members, but neither represents the majority of the estimated 15,000 small and independent retail glass shops conducting business across the country. Because there is no structured communication mechanism throughout the industry, the sharing of timely or necessary information is inferior to that of other industries.
One popular theory why the automotive glass aftermarket industry continues to stand alone is that automotive glass requires a different skill set than the repair/collision industry. Another widely held belief is that repair and collision shops cannot afford to install their own glass because they offer a higher wage rate for their technicians and pay more for glass than glass shops do. That discrepancy in price is attributed to the automotive glass manufacturers’ supply chain through a captive wholesale and distribution system. Repair and collision shops typically purchase glass through the dealer network, which is more expensive due to its complex wholesale system.
Regardless of the reasons, lack of a structured system hampers the automotive glass aftermarket industry. Automotive design evolution has incorporated the windshield into the car roof’s structural integrity. It is now, more than ever, imperative that the windshield be replaced properly, and with the proper component materials. Correct installation will insure the windshield can support the roof and that the passenger airbag will deploy appropriately in a devastating accident. Unfortunately, the improper replacement of windshields has resulted in injuries and fatalities, and is now the subject of several national media inquiries.
Regrettably, the consumer is undereducated as to the value of windshield replacement safety. The expense of marketing to and educating the consumer is not seen as a valuable advertising tool to the automotive glass aftermarket industry, as advertising will not create greater demand.
Need to protect not unnoticed
However, the need to protect the consumer has not gone unnoticed. In 1999, an independent retail owner, frustrated by the conditions in his own marketplace, sought the input of others to create an industry benchmark. He paid for training and used the most sophisticated components to compete with other retailers with an opposing business model. His concern was for the consumer overlooked by other retail models, either under-educated or unscrupulous, that were providing an inferior product and service through a lower-cost installation or improperly trained technicians.
The initiative resulted in the formation of a group of concerned retailers, wholesalers and manufacturers now known as the Automotive Glass Replacement Safety Standards (AGRSS) Council. AGRSS first met in 1999 with the mission to create a benchmark for the replacement of automotive glass. That benchmark would better ensure the consumer a safe windshield replacement.
AGRSS was successful in accrediting a standard through the American National Standards Institute (ANSI) and gathers annually to ensure its standards meet the needs of an industry evolution. It is surprising that such a standard has not been widely embraced and adopted by the automotive glass aftermarket industry. Today, the majority of the market has not endorsed AGRSS, although it was developed by its own stakeholders. This lack of support cannot be attributed to poor communication. AGRSS has been published and promoted by numerous outlets since its inception. One large insurance company made reference to AGRSS in its 2006 “Offer and Acceptance” proposal. Why, then, has not it been adopted?
The AGRSS standard is a beacon in an industry that remains unregulated. The adoption of the standards is hampered by a fragmented industry. But it is worth the effort: The benefits to the consumer benefit the industry as a whole.
Joel Timmons is a regional sales manager for Glass America with 18 years of experience in the automotive glass industry. He is a charter member of the Auto Glass Replacement Safety Standards Council (AGRSS) and is currently serving a three-year term on the Board of Directors.