Back in late March, InStar Services Group named seasoned veteranMark Davis as its new president and CEO. Claims' EricGilkey chatted with him about his past, his future, and what hethinks are the biggest issues facing the insurance restorationindustry right now.

Among your successes, you were co-founder and presidentof BELFOR USA. What did you learn from that experience that willhelp you as the new president and CEO of InStarServices?

When we founded BELFOR USA in 1999, we had a clear directive tobecome the largest insurance restoration company in North America.Although we accomplished that goal within three years, as I lookback some of the growth was just too fast. So as my InStar teamlooks to grow, we will execute our growth at a more manageablepace.

The most valuable lesson I learned while growing BELFOR USA wasthe necessity of a strong leadership focus. In this industry, thatfocus came down to two critical areas. First, recruiting, training,and retaining the best people. Whether the people come from insideor outside of this industry, the people are everything. Second, atireless commitment to the customer. In almost every claim, thereare unforeseen issues that arise. It's how we communicate with andsolve the issue together with the customer that will get thatcustomer to refer us on the next claim.

You began your career in 1996 with the acquisition ofRocky Mountain Catastrophe. Can you discuss some of the differencesbetween then and now, in terms of customerexpectations?

Since the 1990s, the industry has matured dramatically andnowhere is this more apparent than in production. The customer isnow more demanding on response time, nationwide coverage, price,and consistency. This has been good for the industry, as it is hasimproved the quality and service offerings of the contractors.While there are some success stories of companies who have marketedand sold their way to some size, the new reality requiresmaintaining multiple locations, with all providing outstandingservice. Pockets of excellence are not enough; service consistencyis key.

Our industry's definition of service continues to expand as thedemand for a single-source solution intensifies. It is no longerenough to have a few dehumidifiers and a pickup; more sophisticatedcustomers with more specific needs are demanding restorationcompanies expand their in-house capabilities.

Competing on a national level in today's market is much moredifficult than it was in the late 1990s. You need local service buta nationwide presence, rapid response capability coupled with adiverse set of skills, all combined into a more cost-competitivepackage.

What are some of the biggest challenges facing yourindustry right now? Five years from now, will you still face thesame issues?

The biggest challenges facing the insurance restoration industryright now are increased competition from home builders and othercontractors have entered the business because their industries haveall but disappeared; pressure on pricing as a result of theincreased competition; insurance coverage and premiums for generalliability insurance and health care; and high deductibles and theincrease in self insurance both in residential and commercialclaims. I am sure they will still be serious issues five years fromnow, along with several new ones.

However, the biggest unanswered challenge for our industry isenvironmental compliance and environmental stewardship. I believeour industry has significantly lagged other industries inrecognizing and embracing the reality that we live in. To start, wehave to do more than comply with environmental regulations. We haveto understand that as a company and as an industry, we mitigaterisks. Nowhere is this risk more apparent than how we deal withcaustic chemicals and dangerous building materials. At InStar, I amproud of my company's environmental compliance program. I believethat approach continues to gain traction in our industry. I alsobelieve and hope that within five years, we will no longer be oneof the exceptions in this regard.

A few years ago, you were listed as one of the Top 40under 40 by Crain's Detroit Business. What will you have to do tomake the Top 50 under 50 list?

I am not sure what it takes to make that list, but I knowexactly what I will be doing the next 10 years: building InStarinto a world-class restoration company with the most talentedpeople, a relentless commitment to customer satisfaction, and anational footprint of company-owned locations to provide immediateresponse.