Whether commercial tariffs apply now, later, or hopefully never, they weigh on our economy, particularly on our exports, and potentially on some products we import from the United States. The automotive repair sector is no exception.

The aluminum and steel that we export, taxed by the Americans, returns to us as replacement parts, with a significant markup. In fact, we estimate that in the context of this tariff war, automotive parts will cost 10 % more than they did prior to the tariffs.

This increase only adds to a trend we’ve already seen with repair costs skyrocketing. That’s why an increasing number of vehicles are being declared a total loss. In reality, the residual value curve of vehicles does not reflect the cost curve for their repair.

Concern must give way to strategy, however. It’s time to take stock of our shop activities. With the rising price of parts, can we start focusing on repairing vehicles, rather than replacing parts? This isn’t a new idea. We’ve already discussed this, and we all know that, as a rule, it’s more profitable for a body shop to charge for labour rather than parts.

New technologies, like paintless dent repair, allow us to fix these parts efficiently and at a lower cost. This approach helps reduce the overall bill, which is something our insurance partners will appreciate.

 

All networks, and many public organizations, offer cutting-edge training that allows our technicians to rediscover the art of automobile repair. The same goes for estimators. I remind you that it is always more rewarding for a body shop technician and their team to repair a part, rather than undo four bolts, throw it away and replace it with a new one.

Although public discourse today revolves around economic issues, we must not overlook our sector’s commitment to reducing our carbon footprint. Reducing the number of parts that we replace, and cutting down on the number of vehicles that could be repaired, but are instead sent to recycling, is a tangible step in that direction.

Yes, we are facing a lot of uncertainty right now, and it’s possible that our body shops will need to absorb some of the price increases we’ll see for inputs. However, analyzing our repair practices, and the solutions we can apply right now, will yield benefits, no matter what the economic future holds.

While some situations are clearly beyond our control, we still have full access to our operations. Shop managers can now measure the impact of adjusting practices that will be beneficial in the long run. Moreover, there is pride in being able to tell the insurer, “No need to replace this, I know how to repair it.”