Know Your Strategy

May 14, 2015

There has never been a greater need to develop a business strategy to determine the best path forward than now in the collision repair industry.

I’m excited to present a slightly different style of article this week that I present at the end of this post. I’ll be doing more of these articles in the future and hope they prove to be a useful way to exchange information.

There has never been a greater need to develop a business strategy to determine the best path forward than now in the collision repair industry. The entrance of Wall Street money in the industry is causing rapid structural change. No longer is the collision industry just about fixing cars and minding your KPI’s.

The industry is maturing. As a result, business models are changing too. Think back a few years and a popular operational model in the collision industry was to build a big box, a huge box, a 100,000 square foot box and fill it up with the newest and shiniest equipment you could find. If you build it they will come was the thought behind such models.

That model is no longer in vogue currently. Now the predominant operational model is to go lean. Reduce overhead. Drive efficiencies. Reduce cycle times. Smaller is better, less waste, constant production. Triage is critical to convert large jobs to small jobs.