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Articles Written By John Yoswick:
Peoria Heights, Ill.-–Like many entrepreneurs, Denny Boulton freely admits he's more visionary than detail-oriented. "One of the biggest things that has helped me tremendously is surrounding myself with good people," said Boulton, founder and owner of D's Paint & Body Shop, which will celebrate its 30th anniversary next spring.
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Tacoma, Wash.–-Like many collision repair shop owners, Mike Columbo said he spent years of his career working in other people's shops before giving up a six-figure job as a technician to open his own business, Columbo's Collision. But what may set him apart in the future is that Columbo made that move just this past March, launching a business in a year when Americans are driving less, when the economy is struggling, and when, he said, at least a half-dozen shops in his area have closed their doors.
Chicago--Representatives from 15 states and the District of Columbia--all affiliates of the Society of Collision Repair Specialists (SCRS)--gathered in Chicago in late September to share ideas, discuss state legislative successes and efforts, and exchange information with SCRS national board members.
With higher prices curtailing driving (and thus accidents) and tighter household budgets leading some vehicle owners to leave damage unrepaired, some collision repair shops are reporting 10, 20, or even 30 percent drops in sales. Whether hit hard or moderately, most shop owners are looking for ways to keep their businesses moving during the slowdown. Here are 15 things some shop owners--particularly those who have experienced similar economic situations in earlier decades-–are doing to respond.
Bothell, Wash.–-Like most collision repair shop owners, Jim O'Neill doesn't find himself with a lot of idle time at work. The owner of O'Neill's Custom & Collision said he has a crew of four technicians to oversee in addition to the day-to-day responsibilities of running the shop's front office. But despite the full workload, O'Neill said he also volunteers as the chairman for I-CAR's Sno/King District, spending several hours most weeks helping coordinate classes and registration for the training organization. He said his motivation for doing so comes down to one simple fact.
Roseville, Calif.--Like most collision repair shops, Fratcher Auto Body has not been immune to the state's and nation's economic slowdown. "We're down roughly 30 percent from where we used to be in 2005, 2006, even 2007, when things were really hopping," Owner Jerry Fratcher said of his business, now in its 21st year.
Sandy, Ore.--John Kallen said he opened his new shop, Champion Collision, in February 2007, with a "grand marketing plan" in place. That plan has pretty much gathered dust ever since. "Essentially, all we've done is get the building done and fix cars," Kallen said inside the new building's 13,000-square-foot production area. "We haven't really had time to do anything else."
Sottsdale, Ariz.--After a three-year absence from discussions at the Collision Industry Conference (CIC), the use of nondeployed salvage airbags once again this summer was the focus of a committee's presentation at CIC in Scottsdale.
Kirkland, Wash.--Mark Israel said his company's mix of work gives it a bit different pace than many collision shops. "In the winter, when most collision shops start getting busy, we end up doing a lot more restoration rather than collision repair work," said Israel, owner of Eurotech Bodywerkes. "And in the summer, when people take out their fun cars, that's when we get buried. It's sort of odd, but it's our market niche."
San Jose, Calif.--Testa's Auto Body has a 40-year history in the Bay Area, but its roots really stretch back to Italy. Company founder Joseph Testa hand-crafted body parts for both Fiat and Ferrari in his home country before immigrating to the United States in the 1950s.
There have been many articles written in the industry about the concept of "lean processing." Most of those articles explain the ideas behind the "5S" as house-cleaning and organization, the shift to a team concept, and the ongoing search for wasted steps, time, and energy.
For the independent collision repair shop trying to equip itself with automaker collision repair information, expenses can very quickly add up. Buying annual access to the OEM service and repair information Web sites is no small proposition, even if you forgo access to the most expensive sites, such as those of BMW ($2,500 a year), Mercedes-Benz ($2,950), Volvo ($2,600), and Porsche ($5,200).
Tacoma, Wash.--Scott and Kristi Martinson said the move two years ago to the current location of their collision repair business, 6th Avenue Autobody, was among their best business decisions. "It's a more attractive building than all the others I've been in, and every month we try to make a significant step in improving our image in the community," Scott Martinson said in early June.
Sacramento--Carlos Ramirez said his company, Johnnie's Body Shop, has been in business since 1937, which may make it the oldest shop in the Sacramento area. But even if not, he said he doubts there is another 70-year-old autobody business nearby that has only had three owners in its history.
San Jose, Calif.--The "American dream" of success despite humble beginnings has become somewhat of a cliché, but it's hard not to realize that it still can be a reality when speaking with Ninos "Nick" Ternian, co-owner of Arseen Auto Body Inc.
Seattle--When Bill Edleman talks about employees at Big E Auto Rebuild, the company he and his wife, Kathie, have owned for 38 years, he speaks about those who work "with" him, not "for" him.
As State Farm moves to expand its electronic parts-ordering program from two test markets into all of California and Indiana, shops that have been part of the test have widely differing views of it.
As an observer of the auto insurance industry, Brian Sullivan offers a unique perspective on what collision repairers can expect in the future. Among his predictions:
- A painful reduction in the number of collision repair shops;
- Continued efforts by insurers to control various aspects of the process; and,
- Changes in various insurers' market share as the "advertising war" continues.
Tacoma, Wash.--Like a lot of people, Matt Earsley and Brit Balant spent many evenings and weekends talking about opening a business together. But unlike many others, the two collision repair technicians actually turned that dream into a reality when, one year ago this spring, they opened Premier Collision Services in downtown Tacoma.
Bob Redding pulls no punches about the opportunity he sees for the industry in the wake of the U.S. Supreme Court's decision in February not to hear Allstate's appeal of a Texas law banning insurers from owning collision repair shops. Read Full Article
Tacoma, Wash.--How do you keep track of the approximately 50 vehicles in for repairs each week when you have 36 employees, more than 30,000 square feet of shop space in several buildings, and a back lot that is larger than most shop's entire footprint? Read Full Article
Berkeley, Calif.--Celebrating its 30th year tucked away on a relatively quiet street in Berkeley is a collision repair shop with an unusual name: Baron Von Frier. "That's actually my great-grandfather's name," said Dave Perry, who along with his wife, Linda, owns and operates the eight-employee company. "My dad and brother and I started the business 36 years ago in Emeryville and thought we'd name it for my great-grandfather who came to the U.S., and it's a name that people don't forget."
Seattle--The news about school collision repair training programs all too often is grim: declining enrollments, lack of administrative support, more programs being shuttered. But the news coming from Steve Ford, a collision repair instructor at South Seattle Community College, is decidedly different: full enrollment with a waiting list for the past seven years; good support from the school's administration and from area shops, vendors, and insurers; and the completion of a $1.7 million expansion and remodel of the program's main building.
Cathedral City, Calif.--Larry Rogers believes that too many people complain about what's happening in the collision repair industry but don't help do something about it. "If you're not happy with the outcome you're getting, if you're fighting with these insurance companies about labor rates and you don't do anything to change it, then don't complain about it,"
The "total-loss crisis" may not be over, but the dramatic growth in the percentage of vehicles being totaled appears to have subsided. That was the message all three of the major estimating-system providers brought to the Collision Industry Conference (CIC) in Palm Springs, Calif., in mid-January.
Sparks, Nev.--With a 10,000-square-foot shop running smoothly in Carson City, Nev., Gilbert Dayao and Sonny Cheng jumped at the opportunity about a year ago to add a second location when a building formerly housing an equipment rental company became available 32 miles away in the larger Reno-Sparks market.Gilbert Dayao (l.) and Sonny Cheng say opening a second location of Gilson Autobody in Sparks, Nev., was more expensive than anticipated but should pay off for the company. Read Full Article
Proposed air quality rules affecting automotive refinishing that were released by the Environmental Protection Agency this fall are generally being viewed positively by the collision repair industry.
Bloomington, Minn. -- Darrell Amberson said waiting for the start of the International Autobody Congress and Exposition (NACE) feels a bit like sitting in his nitro funny car at the race track, watching the "Christmas tree" for the green light. NACE starts Oct. 31, an event for which Amberson serves as chairman.
More than a year after State Farm's roll-out of its Select Service program, collision repairers we spoke to are split almost evenly over their enthusiasm for the program. About half of those shops that we spoke to that are on the program view it as positive for their business. And about half (including some on the program but many who are not) hold a more skeptical or negative view.
Some shop owners have all but given up on hiring anyone under the age of 30.
As the business of collision repair continues to evolve, shop owners and industry consultants cite a number of management trends and techniques they see as keys to success in the coming years. Read Full Article
Matt Ohrnstein is certainly among those most versed in the "MSO value proposition," or what it is that multishop operators (MSOs) in the collision repair business believe they can offer that a single-location repairer may not. Read Full Article
As the CEO of I-CAR, Tom McGee has overseen a number of changes within the organization, particularly within the past year, designed to make it easier for shop owners to get the training for their employees to qualify for the Gold Class designation.
As someone who grew up in the collision repair business, Randy Cremeans said he remembers when most shops always had at least one or two custom or restoration jobs in the shop."Back in my dad's shop in the 1960s and 1970s, a lot of shops would take in that type of work as well as collision because it really wasn't bad money," said Cremeans, collision segment manager for PPG Automotive Refinish, which offers the Vibrance Collection line of custom colors and special effect finishes.
Read Full Article You've just hired an estimator who looks as if he will be a terrific addition to your office staff. He's bright and hard-working, great with people, and knows how to write accurate and complete estimates.
There's only one problem: He has years of experience using one particular estimating system, and your shop uses a different one. What are your options to most efficiently help him get the training he needs?
