With the rapid changes we’ve seen taking place in the collision repair industry over the last decade, there has been a growing emphasis on the need for stakeholder collaboration to help tackle issues ranging from vehicle and repair complexity to safety, liability, brand protection and profitability.

Different perspectives

Yet while progress has been made, there are still challenges. Often, different perspectives still exist between parties regarding the need to follow OEM procedures when performing repairs. Additionally, there are often different views regarding the ongoing training required to safely and properly repair today’s vehicles. There’s also the issue around the consistency of training and skills, as well as knowledge and equipment when it comes to the actual repairs. This remains a significant concern, even though today, shops have equal access when it comes to claims and repair compensation. 

Inconsistency of knowledge among insurers can also create issues, as well as a lack of an enforceable minimum standard when it comes to facilities, training and equipment.

Better communication

What is encouraging however, is the trend of more respectful communication between collision industry stakeholders, which leads to education around the issues facing each party involved in the repair process. Additionally, the proliferation in OEM repair programs, particularly over the last decade, has raised awareness around the need to ensure vehicles are repaired safely and to standards required by vehicle manufacturers—utilizing the right training, equipment and processes.

While it is acknowledged that following OEM procedures and recommendations can sometimes increase the cost of the repair versus the way it was done in the past, the result is a safer, better repair, with less risk of comebacks or potential liability issues. 

Not following proper OEM procedures can also lead to distrust between parties, not to mention inconsistencies among shops to read, understand and properly document and present the required procedures to insurers. Furthermore, if some shops aren’t properly documenting and performing repairs it could lead to distrust among those that are doing it properly, because they may be requesting items from insurers that others are not asking for.

More labour rate distinction

It’s also important to consider that while OEM certifications are becoming more prevalent and necessary, they do not always lead to an increase in work volume. Shops may be looking for more labour rate distinction between uncertified shops to help offset their investment in training, equipment and certification maintenance.

When we look at stakeholder relationships, one aspect of the collision shop process that can make a significant difference concerns repair planning. Proper repair planning will identify, and document all the required parts, repairs and procedures up front. This will help facilitate discussion with insurers before repairs even begin. 

If every Canadian collision repair centre adopted a complete repair planning process, it would help raise awareness with insurers of the requirements to perform complete, safe, quality repairs, avoiding miscommunication and distrust.

Unsustainable

With already narrowing profit margins, the ever-increasing ratio of office staff to technicians is financially unsustainable. Today, the cost of software, information access, and estimator training are staggering. Since labour rates cover hours of repair—not hours required to research and document the required repairs—they are often not enough to cover this heavy administrative burden. The industry might be well advised to consider the estimating department separately from labour rates and negotiate separate fees for repair planning. 

Ultimately, by doing so, we could see smoother, more efficient and better-quality repairs across the board, which will benefit the customer, not to mention each stakeholder involved in the process.