AGRR magazine delved deep into the National Auto Glass Specifications (NAGS) benchmark in its May-June 2017 investigative article: IS NAGS broken?
Today we reveal additional parts of our interview with John Gilmartin, senior vice president of services and operations at Mitchell International—specifically the possible addition of “value-added” components. He also discusses what to include or not include in its benchmark data.
While NAGS investigates issues with its benchmark prices, Gilmartin says changes could include anything from minor tweaks in processes, to a full overhaul, depending on what’s found. While they’re at it, he says the company is considering how it can add additional “value-added” components, like more information for calibration of integrated sensors, including additional parts. He also says the company is revisiting previous decisions of what to include or not to include in its data.
More than one dealer interviewed for this article believes that an increasingly complex supply chain may be the crux of the issue, with some citing their abilities to obtain windshields at prices that vary by as much as 40 to 50 percent—when including offshore products.
But whether or not those products made their way into Mitchell’s recipe and influenced its benchmark is a matter of pure speculation. Troy Mason, CEO for Techna Glass Inc., in South Jordan, Utah, for one, says he’s not convinced that those products aren’t already part of the equation.
“I think that they have to be,” he says. “Because there’s literally not enough glass made in the U.S. these days not to [include off-shore products].” At the same time, with or without off-shore products, he is one who believes that there may not be an issue with NAGS to begin with. Instead, he says that, over the past couple of years, he’s seen the price he pays for glass dropping by around three percent, on average. And while that’s a far cry from the 10 to 50 percent that other dealers say they witnessed in NAGS prices, Mason maintains that—in his opinion at least—NAGS has managed to parallel market trends.
What did you think of the NAGS article? Should additional components be added to the mix? Post a comment here.