Engineering Change (vehicle technology challanges auto body businesses)

Engineering Change

By: Christopher Sheehy

Autobody Consulting Group

Today’s vehicles are being engineered to avoid accidents. “Crash avoidance technology,” is not tomorrow’s technology, it’s here today, and it is changing everything we know about running a successful auto body collision repair business.

Consumer publications are raving about vehicle safety.  Enthusiast magazines are touting the engineering behind the mechanicals. Even the government is number crunching so they can convince manufactures (and Congress) to add more safety features into new vehicle models.

Technology designed to prevent vehicle accidents is now a major contributor to the lack of volume the auto body repair industry is experiencing.  As if declining vehicle travel, reduced auto insurance claims, and economically stressed people who are less willing to spend their claim money on vehicle repairs aren’t difficult enough for body shops to overcome – we are also seeing less cars-to-the-door because of engineered mechanics.  The problem is a daunting one.

Want a reality check?  Look at what’s in your body shop.  Do you see any vehicles with ABS brakes, or back-up cameras?  How about bumper mounted proximity sensors, fender mounted repeater lamps, integrated hands-free phones, lane departure warning systems?  Maybe you have some LED tail lamps, radar based active cruise control, roll control, run-flat tires, self-leveling & direction-leading headlamps.  Any side mirror signal markers, stability control, third brake lamps, tire pressure monitor systems, or traction control?  There is a lot more of this stuff, but I think I’ve made my point.  Every car manufacturer has designed some of this technology into their products, and customers are buying it.

So . . . how will we counteract this change?

√  Know your numbers (start with doing your own P&L statement)

√  Measure and manage KPIs (lots out there, know which ones matter)

√  Build a positive can-do culture in your business (it starts with you – show by doing)

√  Act lean (Think: 5s – waste reduction – theory of constraint – and advanced process efficiency)

√  Market strong and locally (old-school marketing is out – tap into community marketing opportunities, have a website that ranks on the first page of Google, do the social media thing with at least Twitter & FaceBook)

Old school just won’t work anymore.

If you have questions on any of these things, find someone who has the information you need; and ask them to teach you; or hire an autobody consultant who’s done this before.

Today’s collision repair business climate is more dynamically different than it ever was.  Old school just won’t work anymore.   The expected shop count for our industry could be reduced from 40,000 to 25,000 businesses within five years.  The future of our collision repair industry will be formed by those businesses that survived this reduction by successfully manage the BUSINESS of collision repair.  That being said … it is still true, that now more than ever – whether running an affiliated or independent business model – how you manage that next car through your door, is more important than just getting another car to your door.