Economic manoeuvring in the U.S. auto sector is affecting our operations

There’s no doubt that tariffs will impact certain parts, products and materials we use to repair vehicles after a collision. That said, it’s worth noting that a significant portion of these inputs are covered under the free trade agreement that governs our transactions, and should move across the border without being subject to additional duties.

Will Canada impose reciprocal tariffs on non-covered products or on replacement parts targeted by the U.S. president? It’s hard to say—and between the time I write this column and when it gets published, the situation could change.

Vehicles to repair

What we can assess is the impact of these global trade tensions on the value of vehicles sold in our market. This price increase, driven by trade restrictions, is also reflected in the residual value of vehicles currently on the road. For our sector, this is very good news and something we can choose to focus on.

Vehicles that retain their value are less likely to be written off after a collision. Some insurers are even willing to cover up to 95% of a vehicle’s value during assessment to get it back on the road. The ability to repair vehicles that would otherwise be scrapped is excellent news for our operations. And of course, for the environment, which is all too often overlooked.

Collision repairers certainly didn’t need this roller coaster on top of the many challenges they already face when it comes to recruiting, training and upgrading their facilities to keep pace with the technological advancements in today’s vehicles.

Repairing smarter

Once again, the idea of repairing rather than replacing comes into play. Insurers may be willing to adjust if a repair takes longer—if it means avoiding the use of parts whose cost and availability are likely to be affected by recent trade tensions.

Shops also need to keep a close eye on all the small expenses that can pile up and eat into profit margins. Overuse of materials by technicians lacking guidance or training, excessive paint consumption due to poorly adjusted or inefficient spray guns, or a paint booth that could be used more efficiently through better job planning, all these areas need to be watched.

To wrap up this column, I want to offer some reassurance to our collision repair community: no matter the economic climate, collisions will always be part of the everyday reality for Canadian drivers. And current circumstances are pushing us to focus on the things we can control—namely, our work processes and our expenses. In my view, adopting best practices will be one of the lasting, positive outcomes of this period of uncertainty we’re all navigating together.