There are many exercises—from team building to tactical—that companies use to help keep management teams on their toes...and sometimes on the spot. One of the more spontaneous exercises I've participated in is answering this question, "Tell me five trends you watch in your business to help you manage for the future." No matter what role you play in the collision repair industry, you should have the answer to this question in your back pocket.
The answer will help business managers and owners prepare for the future and focus beyond the day-to-day and quarter-to-quarter way of managing. These five trends also can help shop owners, insurers and, frankly, anyone involved with this industry plan for the future.
1. INCREASING USE OF EXOTIC ALLOYS. European car makers seem to be at the forefront of introducing exotic alloys and construction methods, but the new 35 mpg corporate average fuel economy (CAFé) standards hitting in 2016 will cause U.S. and Asian auto makers to expand use of new lightweight alloys.To prepare shops requires investing in more powerful welders and budgeting for an additional stock of hardened drill bits and cutting tools, and investing in education, particularly vehicle manufacturer specific repair reference tools. Insurers also have a responsibility to understand the required repairs to write a fair and accurate damage assessment.
2. INCREASED OEM CERTIFICATION. This subject is closely related to the exotic alloy increase and is dictated by auto manufacturers concerned about the inability of most technicians to properly repair advanced construction methods.This measure will play out like the exotic alloy scenario; domestic and Asian car makers will follow the European manufacturers' lead – unless an independent industrywide shop certification program that addresses these concerns with proper education and method verification is implemented. Our industry must do this before each manufacturer or, worse still, the federal government steps up first.
3. THE NEW SMALL CARS...THE B-SEGMENT. Have you noticed the flood of small cars in the United States known worldwide as the B-segment? Maybe you have seen some in your shop like the Ford Fiesta, but get ready to see even more of these small, moderately priced vehicles with up-and-comers like the Chrysler/Fiat 500 and Chevrolet Spark. With impressive (and expensive) parts like xenon headlamps and a minimum of four airbags, moderate accidents will bump these cars into borderline totals quickly.
One way to address this is developing a teardown system to fully assess front-end damage for these tightly packed cars. I challenge respective auto makers to imitate American Honda's "collision kit" that discounts hoods, bumper systems, fenders, and SRS parts when purchased as a virtual kit. These kits can help keep more cars in the repairable column.
4. PLASTICS. To borrow from the 1960s movie The Graduate, "The future is plastics." Again we look to Europe for a first in this category. BMW's plastic engine cradle in its 5 Series and Mercedes E-Class' fiberglass reinforced plastic inner panel extension from strut tower to core support are impressive and hint at the future. While a cracked plastic engine cradle may not be repairable, repairing a plastic inner panel and other plastic components may be. Staying current on the state of plastics in vehicles and plastic repair could lead to more cost effective and profitable repairs.
5. INCREASED NEED FOR BODY SHOP MANAGEMENT SYSTEMS. It's no secret that this recession has caused many collision repairers to close. More efficient operators had it rough too, but better management of expenses and margins have been key to staying afloat
As we emerge from the longest recession since the Great Depression, shops must become more efficient because competition is tougher than ever, with those who were strong enough to survive left. A complete body shop management system once thought of as future luxury may become as necessary as a paint booth.
You have my top five trends. What are yours?
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