R. L. Polk & Co.’s Ask The Industry Learns How Hurricane Katrina Affected the Aftermarket - aftermarketNews

R. L. Polk & Co.’s Ask The Industry Learns How Hurricane Katrina Affected the Aftermarket

For this edition of Ask The Industry, we asked members of the industry who were affected by Hurricane Katrina how they are handling their recovery efforts. We talked to O’Reilly Automotive CEO and Co-President Greg Henslee, whose area stores sustained much damage, and Automotive Aftermarket Association of the Southeast (AAAS) President Randal Ward, whose members in the Alabama and Mississippi region were directly affected as well.

For this edition of Ask The Industry, we asked members of the industry who were affected by Hurricane Katrina how they are handling their recovery efforts. We talked to O’Reilly Automotive CEO and Co-President Greg Henslee, whose area stores sustained much damage, and Automotive Aftermarket Association of the Southeast (AAAS) President Randal Ward, whose members in the Alabama and Mississippi region were directly affected as well.

Can you update us on the recovery efforts for your stores that were impacted by Hurricane Katrina?

Greg Henslee, CEO and co-president, O’Reilly Automotive, Springfield, MO:
We got all of our stores re-opened pretty quickly, with the exception of three stores. We had one store that was damaged by wind and two that were damaged by storm surge.
Those three are not yet open and it will take some significant work to get them re-opened. One will have to have the building re-done and the other two need new merchandise and things of that nature. Some of the building insulation will have to be re-done because there is quite a bit of water in them.

How are you assisting your association members who were directly impacted by Hurricane Katrina?

Randal Ward, president, Automotive Aftermarket Association of the Southeast, Montgomery, AL:
We are getting money to our members for their employees and families. We’re talking about going down (to the affected areas), getting out the checkbook and writing a check to members so they can buy some groceries for their families.
We have workers compensation and health programs and we are giving members extra time to pay the premiums. Normally, we charge late fees, but we are foregoing that and giving them time to get the money together.

Do you have an idea of how long the process will take or is O’Reilly just taking the repair efforts day by day?

Henslee: We’re kind of taking it day by day. We’ve contacted the salvage companies that will take the damaged merchandise out and then we’ll get the buildings re-done. For one of the buildings, which has to be re-built because it was damaged by wind, we’ve secured a temporary location while we can re-build. But at this time, we don’t have any estimation of how long it will take because construction down there is pretty tough right now.

How is the response from your group and other aftermarket associations going?

Ward: We collected several thousand dollars so far. I receive calls everyday from people around the country responding to our emails. They are delighted to find a place where the money is going straight to jobbers and their employees.
I’ve been really humbled by the response we’re having across the country. The other day, we had calls from our sister-state associations in New York and Ohio. It makes me eager to help others when the time comes. And believe me, we will be ready when there is a flood in the Midwest or an earthquake in California because we are all in this together.

How are your employees and members? Have they been scattered to different locations or we many of them able to remain on site?

Henslee: Some have…we were really very fortunate not to have lost any team members and not have any team members that were injured. We had several that lost their houses or had damage to their houses, but considering the extent of damage from Katrina, we were pretty lucky, both from a business standpoint in our stores, and in regard to our team members and their families. I took a trip down there the week after it happened to get a look at the area and our stores, and I’ve never seen devastation like that in my life.

Ward: We are compiling stories now from people who have been directly affected by the storm. I was just talking to one of our members from Mobile, AL, the other day and his business was basically blown away. His business was more into repair then parts sales. Nevertheless, he did lose his inventory.
Most of the guys have amazing spirits. They say, ‘Randal, I’m still here. I’m not dead yet, don’t send flowers. The roof is leaking but I’m still selling auto parts.’ They’ve been selling parts by candlelight and using paper currency for transactions. Those guys are pretty amazing.

Summary by Michael Freeze, managing editor, AftermarketNews.com

Along the Gulf Coast, residents are now beginning to piece back their lives and get their families back on normal footing. In addition to repairing residential communities, the area’s infrastructure is also in need of assistance. The industry, in this region, will have the laborious task of starting from square one. Despite the disaster, auto parts still need to be bought and sold and services still need to be performed, maybe more so since many automobiles were also damaged as a result.
For the last couple of weeks, we have been reading about the contributing efforts of associations, distribution groups and independent service centers. They have been making major donations to the Red Cross and other local relief efforts, providing warehouses and other facilities to temporarily house evacuees and even donating tools from their own repair shops.
Although Hurricane Katrina brought out the worst in Mother Nature, it eventually brought out the best in the human spirit. The industry has gathered its resources to help itself get back on its feet. In general, there has been no shortage of support, from across the country and elsewhere.

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