Consolidation, Training and Technology: Three Trends to Watch in 2023

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Finding Balance in an Unpredictable Work Environment

Steve Leal shares his insights on aftermarket industry developments to follow in the next 12 months.

BY STEVE BD SERVICES , INC. (ISI)

The complexity of cars has increased and will continue to grow as more electric vehicles are on the road, and consumers expect innovative technologies in all aspects of their lives. The collision repair industry has done an excellent job of staying on top of OEM developments and helping customers with their aftermarket needs. But technology is ever-changing and requires continuous investment in equipment, processes and training as new repair and maintenance needs arise.

The last three years have proven that accurately predicting the future is difficult. However, I believe three evergreen trends in our industry will continue to shape the auto body shop business.

Business Case For Consolidation

The aftermarket industry has been largely recession-resistant, but body shops are not insulated from failures. Over the years, many independent body shops have been actively looking at aligning their businesses with an established franchise network, such as ProColor Collision. It allows them to remain current on the changing trends and create value for their clients through enhanced customer care and better service standards.

Being a franchisee has several advantages, the main one being that you are in absolute control of your business while your franchisor works behind the scenes to facilitate your success. Most established franchisors run a successful business model that has already been extensively tested, and the kinks worked out. There are several benefits of joining a franchise network:

• Brand recognition and credibility among customers

• Easier access to insurance providers/fleet companies

• Reliable supply chain management and costs savings

• Global OEM relationships

• Greater access to financing

• Marketing support throughout the year

• Time-tested operational strategies and workflow improvement methods

One of the most significant advantages of aligning with a franchise network is access to continuous training and certification for your staff and technicians.

Training And Certification

Automotive technology is changing rapidly, and the aftermarket industry needs to ensure that technicians are fully trained to repair the most modern vehicles. Training alone represents a high cost for independent body shop owners. Most franchisors run extensive first-time and refresher training for the franchisee’s staff – an ongoing process to ensure that they remain on top of modern automotive trends. In addition, knowledgeable franchisor teams train shop staff to improve the customer experience and business operations.

With rapid advancements in vehicle technology, repair procedures, processes and requirements of most makes and models change from one year to the next. This applies to internal combustion engine vehicles but is especially true for hybrid and electric cars. In this changing environment, the importance of certification is reinforced.

Franchisors work with leading government and industry bodies to ensure that franchisees and their teams are trained to safely handle the most complex repairs and to OEM specifications. Shop certification demonstrates to customers and insurance partners that the team has been trained to manage the most complicated mechanical and collision repair requirements based on manufacturer specifications.

Technology

Today’s vehicles are equipped like computers on wheels, with new technology being introduced every six months. The aftermarket business has been shifting gears and accelerating to adapt to these new developments, such as driver assist systems, adaptive cruise control, autonomous driving sensors and infotainment setups. We also have seen increasing adoption of artificial intelligence and computer vision systems to streamline diagnostics and inspection processes in some critical aftermarket operations.

Electric vehicles may take some time to reach parity with internal combustion engines in terms of sales and adoption. Still, they will continue to present exciting opportunities and questions for the industry. The challenge for the aftermarket industry will be if it is prepared to repair these sophisticated machines. In case of a collision, electric vehicles demand a completely different approach than just tending to dent repair.

Likewise, we’re several years away from fully autonomous vehicles on the road. But it’s never too early to prepare for the next technological evolution and understand how it might disrupt the aftermarket industry.

The automotive aftermarket industry is not immune to the rapid changes in every sector. Body shops must understand the latest auto manufacturing and technology developments to support their customers better. As consumers expect more from their vehicles, OEMs and technology companies ramp up development to meet demand. In this situation, franchise networks are better positioned to pivot and adapt and support their customers.

Steve Leal is the President & CEO of Fix Network World, the leading global automotive aftermarket services network which includes ProColor Collision. The family of brands spans over 2,000 points of service internationally. In the United States, Mondofix, Inc. has granted an exclusive license to 79411 USA LLC to the FIX AUTO brand.