Now Is the Time to Maximize

By Larry Montanez III, CDA

Across the country, collision repair facilities are experiencing a noticeable decline in claim volume. The slowdown is affecting direct repair facilities, independent shops, dealership collision centers, and multi-shop organizations alike. At the same time, many customers are increasingly seeking out-of-pocket repair options rather than filing insurance claims, creating additional pressure on repair facilities to maximize profitability on every repair opportunity.

While repair volume may fluctuate, vehicle complexity continues to increase. Today's vehicles incorporate advanced materials, sophisticated electronics, advanced driver assistance systems (ADAS), high-strength steels, mixed-material construction, and interconnected safety systems that require extensive research, documentation, and procedural compliance.

After reviewing more than 2,000 estimates, analyzing over 2,000 Right to Appraisal cases, and examining repair plans from facilities across North America, a common pattern has emerged. Many repair facilities continue to struggle with identifying required repair operations, properly utilizing estimating systems, documenting OEM procedures, and understanding how modern vehicles absorb and manage collision energy.

The result is often missed operations, reduced profitability, increased supplement activity, and unnecessary liability exposure.

Fortunately, these challenges can be corrected. Shops that invest in training, accountability, and process development are often able to improve estimate accuracy, increase profitability, and position themselves for long-term success regardless of market conditions.

The Training Deficit

Training has been one of the collision repair industry's greatest challenges since the invention of the automobile. Too often, knowledge is passed from one employee to another based on habit rather than documented repair information.

While experience remains valuable, experience alone does not guarantee accuracy. When individuals learn procedures from others who may not fully understand the underlying repair principles, incorrect practices can become ingrained and repeated throughout an organization.

The collision repair industry has entered an era where assumptions and trial-and-error methods are no longer sufficient. Vehicle manufacturers now publish detailed repair procedures that address everything from structural repairs and battery management to scanning, calibrations, and material-specific repair requirements.

Repair facilities that fail to prioritize training often find themselves struggling with missed operations, inaccurate repair plans, and inconsistent repair quality.

The Importance of Estimator Development

Many facility owners focus their training efforts on technicians while overlooking the individuals responsible for developing the repair plan.

Estimators are often the primary drivers of profitability within a collision repair facility. They identify required operations, document damage, research repair procedures, and establish the foundation upon which the entire repair process is built.

Unfortunately, it is common to see estimators performing responsibilities that belong to customer service representatives, parts personnel, production managers, or administrative staff. When estimators spend their day performing unrelated tasks, the quality of repair planning often suffers.

Successful facilities establish clearly defined job responsibilities and accountability standards. Estimators should be allowed to focus on researching procedures, documenting required operations, and creating comprehensive repair plans rather than managing multiple unrelated responsibilities.

Simply put, repair planning should be treated as a specialized skill rather than an administrative function.

Process Drives Profitability

One of the most effective ways to improve estimator efficiency is through standardization.

Facilities should develop repair-planning processes that include:

• Standardized estimate-writing procedures
• OEM repair information research protocols
• Pre-repair scanning requirements
• Vehicle measurement requirements
• Battery testing and voltage-management procedures
• Seat belt and restraint system inspections
• ADAS documentation requirements

Creating standardized operation templates and repair-planning checklists can significantly reduce missed operations while improving estimate consistency.

Repetition creates efficiency. The more structured the process, the less likely critical operations will be overlooked.

Leveraging Technology

Today's estimators have access to more repair information than ever before.

Third-party information providers can provide efficient access to OEM repair procedures, technical service information, diagnostic data, and repair requirements. However, technicians and repair planners should continue to reference OEM repair information whenever necessary to validate repair procedures and vehicle-specific requirements.

Many successful estimators utilize dual-monitor workstations, allowing them to review repair information and estimate simultaneously. This simple workflow improvement can dramatically improve research efficiency and repair-plan accuracy.

Technology alone does not create better estimates. The combination of proper training, effective processes, and efficient information access creates better estimates.

Accountability Creates Results

Training without accountability rarely produces lasting improvement.

Facility owners must establish expectations for continued education and professional development. Estimators should understand how to:

• Read and interpret frame measurement reports
• Analyze scan-tool results
• Research diagnostic trouble codes
• Locate OEM repair procedures
• Understand material-specific repair requirements
• Document not-included operations
• Build complete and defensible repair plans

The collision repair industry has become increasingly technical. Shops that invest in estimator education often see measurable improvements in estimate quality, supplement capture, cycle time performance, and overall profitability.

The Opportunity Ahead

Although repair volume may be down in many markets, opportunities still exist for facilities willing to improve their processes and invest in their people.

The shops that consistently outperform their competitors are rarely the shops that simply repair the most vehicles. More often, they are the shops that produce the most accurate repair plans, properly document required operations, follow OEM procedures, and create a culture of continuous learning.

In today's environment, maximizing profitability is not about charging more. It is about identifying, documenting, and performing every operation necessary to properly restore the vehicle.

Conclusion

The collision repair industry has always rewarded those who adapt to change. While claim frequency may fluctuate, vehicle technology continues to advance at an unprecedented pace.

Training should no longer be viewed as an expense. It is an investment in efficiency, repair quality, profitability, and risk reduction. Facilities that invest in estimator development, procedural accuracy, OEM research, and accountability are better positioned to succeed regardless of market conditions.

In today's marketplace, maximizing opportunities is not simply about repairing more vehicles. It is about repairing every vehicle correctly, documenting every required operation, and ensuring that every member of the team has the knowledge and resources necessary to perform their role effectively.

Now is the time to maximize.