Repaint Reporter

4 " . . . we Must invest in ouR PeoPle and GRow talent FRoM within because we Face a shoRtaGe oF technicians." daRRen huGGins " owneRs and ManaGeRs need to coMMit to MonitoRinG the nuMbeRs." MaRK claRK what aRe the cuRRent tRends and issues shaPinG the collision RePaiR industRy? huGhes: in developed markets, crash avoidance technology, stricter drinking and driving laws, and better overall drivers are resulting in fewer accidents. obviously, it's critical to attract work as crash rates go down. That means making sure you have efficient processes, deliver work quickly, and that you can satisfy the metrics for insurance companies. outcalt: consolidation is also reshaping the industry. insurance companies want greater volume through fewer shops. The challenge for collisions centers is being efficient enough to keep up with required cycle times while meeting customer and quality thresholds for DrP programs. huGGins: Gone are the days of entitlement and good old boys' network. Just because we are a national multi-shop operator does not guarantee us additional direct repair programs with insurance companies. we must create and deliver value to our insurance partners every day. The ultimate question needs to be, do our insurance partners make more money by doing business with Van Tuyl? beRKey: i agree 100 percent. repairers, insurers, jobbers, paint companies, really everyone within the industry will feel continued pressure on performance. in a consolidating market the work will go to the best performers. PatteRson: Training is going to be a big part of our future. That's the way i see refinish trending. we're sending our guys for training in every aspect of the repair process, so they know the appropriate procedure. claRK: if you're not tracking your performance—cycle time, labor or any number of key performance indictors—and demonstrably improving them, then this is going to cause you a severe reduction in work. what challenGes Face collision RePaiR in the yeaRs to coMe? beRKey: Technology is going to reduce accident rates over time. indications are that emerging generations could be driving less than prior generations. Several factors are having a negative influence on industry growth. So if a collision business wants to grow in the future, they are going to have to take business from someone else. The increasing rate of change will cause us all to have to adapt more quickly. PatteRson: one of our biggest challenges is having the right employees, so training is going to be a big part of our growth. we just started our business in february. we want all of our guys certified by i-cAr. Because everything is so technical, we want to make sure everyone in the shop knows the appropriate procedure. huGGins: Performance is critical, so we must invest in our people and grow talent from within because we face a shortage of technicians. Automobiles are more sophisticated with complex electronic systems, composites and repair procedures for aluminum, high strength steel and

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