Factory certified leader

Nov. 6, 2015
Paying close attention to the finer points of collision repairs and providing topflight customer service have set a course of success for Oregon’s award-winning Precision Body & Paint.

Paying close attention to the finer points of collision repairs and providing topflight customer service have set a course of success for Oregon’s award-winning Precision Body & Paint.

With two locations in Beaverton and Bend, this year marks the operation’s 40th anniversary as the business has weathered several economic downturns, pressures from the insurance industry and massive shifts in the collision repair industry as a whole, according to owner Ron Reichen.

At a glance
Name of shop:
Precision Body & Paint
Main location:
Beaverton, Ore.
Owner:
Ronald Reichen
Number of shops:
2
Years in business:
40
Number of employees:
70
Number of DRPs:
0
Total square footage:
48,000
Number of bays:
114
Average cycle time
12.9 days
Average repair order:
$2,625
Average weekly income:
$208,000
Number of customer vehicles per week:
110
Annual gross revenue:
$10.8 million
Paint supplier:
Glasurit
Frame machines used:
Car-O-Liner, Celette, Chief, Kansas Jack
Estimating systems used:
Audatex, CCC, Mitchell
Website:
www.PrecisionFirst.com

Emphasizing a management philosophy of continuous improvement, Reichen says he actually relishes such challenges, an attitude that goes back to his family roots.

“My grandparents were immigrants from Switzerland and we had a dairy farm. My grandfather, Chris Reichen, was a strong organizer; the expectations were high and failure was not an option.”

Chores and schoolwork were steady routines that a young Ron Reichen readily embraced, especially when his dad Francis passed away and Ron was called upon during his high school years to start managing the farm.

“My metabolism was established at a young age,” he says, characteristics that have carried on to this day. “I’m not happy unless I’m doing five different things at once. I leave the house at 4:30 or 5 in the morning and I get home at around 8 or 8:30 in the evening.” The demanding schedule comes naturally and without complaint, and it still includes a commitment to excellence as evidenced by Ron’s personal and professional motto: “If it’s good enough to do, it’s good enough to over-do.”

In 2003 Precision took on its biggest challenge ever – setting out on a relatively uncharted path for an independently owned shop as it pursued a factory certified collision repair model. Since then, the company has severed all ties with direct repair programs (DRPs), and to-date has earned recognitions from more than 20 manufacturers ranging from European automakers such as Audi, Mercedes-Benz, Porsche and Volkswagen, to domestic manufacturers that include Tesla, Dodge and GMC.

Touting a tagline of “Oregon’s Leader in Factory Certified Collision Repair,” Precision has obtained more factory certifications than any other shop in the Pacific Northwest.

According to Reichen, being a factory certified independent shop is both the chief marketing advantage and also the source of a principal challenge – educating the customer about the value of factory certified body repair. “Many customers view collision repair as a commodity-like service, assuming they will get essentially the same outcome regardless of which collision repairer they choose,” Reichen reports.

The company endeavors to explain to its customers that auto manufacturers have a vested interest in ensuring their products are repaired properly after a collision, and by choosing to repair cars to manufacturer standards, Precision is thus directly aligned with the customer’s best interest.

“We continue to strive to educate customers about the advantages of factory certified collision repair through a variety of channels. One way we do this currently is in cooperation with Auto Damage Experts, a post-repair inspection facility,” he notes.

“We maintain positive relationships with the insurance providers by providing them the assurance our customers’ cars are being repaired to factory standards,” says Reichen. “Because we’ve committed to the training, education and tooling to gain factory certification, we are one of the very small numbers of facilities that can procure and install restricted manufacturer-certified parts.”

A 100 percent teardown process, along with detailed damage analysis and repair planning, are all performed in keeping with the manufacturer’s standards. The precise procedures additionally assist the materials and parts vendors by providing them with accurate orders and minimal returns. “This is a result of our 100 percent teardown process, which in turn bolsters our accuracy in writing repair plans.”

Gaining altitude

In addition to his interest in continuous improvement-type management, Reichen also has a background in advanced metallurgy technology, having worked in the aircraft construction industry prior to entering the collision repair field. “I developed my interest in metals at a young age.” While still in high school he constructed two gliders – selling stock in the rising venture as well – and the now-vintage crafts remain airworthy to this day.

“I’ve always liked working with metal. I bought my first welder at a farm auction when I was just 12 years old. I paid $37.50 for it – an old Lincoln 180 arc rod machine,” Reichen recalls. “Later, my junior high school metal shop teacher, George Marco, encouraged my interest in metalworking. He and I maintained a lifelong friendship up until the time of his passing some years ago. His mentorship is really what encouraged me to get involved in the aircraft industry, where I became immersed in metallurgy and aluminum repair.”

While Reichen’s background has proved serendipitous in recent years, back in the 1970s few would have guessed that Ford would someday manufacture the all-aluminum F-150 pickup truck. “Growing numbers of auto manufacturers are switching to ‘space-age’ aluminum alloys that are strong yet lightweight so cars burn less fuel and thereby meet federal CAFE emissions standards,” he points out.

  Ron Reichen, owner

“The fact that specialized training and equipment is needed to repair these lightweight alloys is yet another reason Precision is committed to the factory certified repair model – manufacturer training has been crucial in helping the shop’s technicians stay up-to-date on training.”

Recently recognized by the Rockefeller Foundation for designing an elevated in-house mentoring program, the shop uses a contract-based system to attract promising young workers and develop them into master technicians.

“Master technicians are the revenue center at Precision and in the industry generally. The gross labor margin on a new worker is slightly negative or zero for a few years, so it’s crucial not to lose an investment in training if a worker leaves before he or she becomes a master technician. A long-term commitment to their education, combined with financial incentives, keeps the company’s talent pipeline full in an industry fighting to produce and retain master technicians.”

The contract system, launched in 2006, works because young workers get free on-the-job training and paychecks as long as they work for Precision during the five-year training period. The company provides the education through an unsecured loan that doesn’t require the worker to put up any collateral.

If a worker leaves before five years, he or she is obliged by the contract to repay the cost of training received. Workers also sign a non-compete agreement stipulating that they will not leave for a competitor in their first two years of training. Reichen has never had to enforce the contract because nobody has ever left during the term of the contract.

“Trainees are paired with experienced mentors to usher in a new generation of workers who have systematically learned how to be skilled auto-body shop technicians. Because trainees work side-by-side with seasoned experts, Precision is assured that its youngest workers will master sophisticated skills that will keep the company competitive and profitable. Since the program began, the average age of Precision’s workforce has fallen by 20 percent, providing reassurance about the future pipeline of talent.”

Reichen goes on to explain that “we also do some in-house training through our local community college’s extension program at our state penitentiary, and we currently employ several former inmates that were trained through this program.”

A skilled profession

Reichen’s transformation from the family dairy enterprise, which he still operates (absent the cows) with his brother Roy, to the collision repair industry stems from an early aptitude for all things mechanical. “I ended up being the guy who fixed the equipment to keep the farm going.”

As he sought a new horizon in search of an alternative career path, Reichen had a revelation upon going to work for a local body shop. “I had all the equipment (back at the farm), and I thought, ‘Why should I be doing this for somebody else?’ I started the business the day after my 21st birthday and I’ve been at it ever since.”

The rented debut location originally housed an Oldsmobile/Rambler dealership service center. “We acquired our Beaverton property as bare ground in 1977, but it took two years to get the design and architectural plans approved by the local planning department. We were finally able to commence construction in 1979. We moved into the current space in 1980, built a second building in 2001, and in 2003 purchased an additional two-and-a-half acres, which now houses a two-story office building, a post-repair inspection facility, and a metal shop used for repairing larger vehicles, motor homes and sprinter vans. Our Bend shop was built in 2011 and will be celebrating its five-year anniversary this November.”

Reichen consistently supports a wide assortment of civic and charitable events along with being an active member of the Society of Collision Repair Specialists (SCRS), serving as the organization’s chairman in 2013-14.

And the Precision enterprise includes a training center that houses 80 students in which the shop regularly conducts in-house I-CAR educational sessions, frame training and refinishing classes.

“I’ve always been an educator with a thirst for knowledge in the industry, and the knowledge base in the collision industry is huge. We are no longer a trade; we are a skilled profession – and that’s my passion.”

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