THRIVING FOR ANOTHER CENTURY
Started in 1917 in Savannah, Georgia, curated DRPs supplement the business’ community relationships to enhance growth.
SATA RPS Multi-Purpose Cup
The cup system for mixing and painting
The SATA RPS multi-purpose cup system performs four functions: mixing, painting, refilling, storing. The handling of SATA RPS is so easy because it consists of only three parts: cup, lid and sieve.
SATA RPS fits directly onto your SATA spray gun with QCC connector (Quick Cup Connector) without any adapters. It makes a technician's life much easier, considerably increases productivity and drastically reduces the consumption of cleaning solutions and solvents.
Bendable - allows painters to tilt the cups forward or side to side to spray at different angles, on parts, rocker panels, bumper covers. Stable - due to robust connection between cup and lid, the cup always remains on lid and gun even when touching obstacles. Constant material flow - whether the cup is full or just a couple ounces, the flow rate will stay the same for a perfect finish. Easy removal, when finished squeeze cup and close vent cap on bottom of cup to create vacuum. Turn gun over pull trigger to empty the material passage. New packaging to match industry standard
satajet@satausa.com www.satausa.com
BY NOAH BROWN
BY LINDSEY GAINER
Drew Bryant knew what he wanted for his next location for DB Orlando Collision. He found it in a
Motor Age Training
EDITORIAL
Chris Jones Group Editorial Director
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Greg Lobsiger Contributing Writer
Noah Brown Contributing Writer
Lindsey Gainer Contributing Writer
Carol Badaracco Padgett Contributing Writer
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EDITORIAL ADVISORY BOARD
Jordan Beshears Steve’s Auto Body
Sheryl Driggers Collision Advice
Frank Rinaudo Industry Consultant
Jason Mundy Mundy’s Collision Center
Stan Medina Certified Collision Works
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PRECISION MEETS POWER
• 13.3” display and blazing-fast performance for serious diagnostics.
• Covers 200+ vehicle models with OE-level functions and Topology Mapping.
• MDCI Pro supports advanced protocols for modern and heavy-duty vehicles.
• Cloud-based programming and 2 years of updates included.
• Docking station and 8-hour battery keep you powered all day.
• Compatible with Phoenix ADAS, BTMobile ProS, and T-Ninja Box for added capability.
WHY INDUSTRY EVENTS MATTER
Regional and national meetings are a chance to network and learn about what’s coming down the pike.
AS I ROUNDED THE CORNER outside the ballroom at the Certified Collision Group Conference in Nashville, Tennessee, March 30-April 1, I spotted a familiar face, but one that belonged to someone I had not met before. I had been friends on Facebook with him for probably five years or more, but it had been the first time I’d seen Mike Brockway, owner of Dabler Auto Body & Collision Repair in Salem, Oregon, in real life.
We struck up a conversation about the latest challenges not only he, but others, we figured, are facing at the moment, and as we hurried to the next session, we promised to reconnect for a longer discussion, which we did for the April 22 CollisionCast.
My experience is not unique, I’m sure. Over the years and having attended dozens of regional and national events, I’ve met so many people I consider friends (and I hope the feeling is mutual,) faces familiar to me often quarterly or even more often as we travel to the same events.
It’s not only the presentations and other sessions in which I’ve benefited, though. Although discussions may turn to project cars, motorcycles, or drag-racing (if you want to talk sports, I’m not your guy,) it’s the discussions during breaks and at the receptions where the networking happens, where the off-the-record feedback and perspectives take place.
There is a wealth of information available at an event, and what we have the time and space to share is but a taste of that.
I know it takes a commitment of time and money for the travel. The attendance at the national events often is made up mostly of executives or vendor owners and representatives and does not include many technicians. Kyle Motzkus, who has contributed to ABRN and is a frequent presenter at conferences on repair planning, recently posed the question in the Facebook group Collision Repair Technicians United on why more repairers don’t attend national industry events after he’d just returned from present-
ing at the Collision Industry Conference.”I want to make sure the people who can make change or push it hear the real voices, not just what they THINK they hear. Help me help you.” The responses varied, including the lack of available time or that their feedback to management at a large MSO after returning from an event would not be welcomed. Another commented that he attempts to attend all the available training he can, but it’s a challenge to instill the same takeaways upon his return to the shop, since his crew is not able to experience the event firsthand. I agree. But as someone who’s been tasked with bringing back shareable lessons and been the trainer in the “Train the trainer” scenario, at least CIC offers a PowerPoint at no charge of each presentation. One idea would be to take notes at CIC on which one or two presentations were the most impactful and make a lunch-and-learn presentation of it soon after your return, when the information is fresh. This industry is full of people eager to make it better. We need to give them a chance.
JAY SICHT EDITOR-IN-CHIEF jsicht@endeavorb2b.com
CIF ANNUAL DONOR PROGRAM
SEEKS 2025 DONATIONS
THE COLLISION INDUSTRY FOUNDATION is calling for the industry at large to participate in CIF’s Annual Donor Program. Introduced in 2021, the program enables the CIF to provide immediate financial relief to collision repair professionals in need after a disaster.
The program has five tiers of support:
• First Responder: Donations greater than $10,000
• Urgent Care: Donations between $5,000-$10,000
• Immediate Responder: Donation amount between $1,000-$4,999
• Primary Care: $500-$999
• First Aid: $50-$499
It is through the Donors’ generosity that CIF can help individuals impacted by accidents, floodings, and wildfires in many parts of the country. Check out the list of annual donors and testimonials from recipients at the CIF website.
The CIF depends solely on the generosity of tax-deductible donations to conduct its work, and numerous donors within the industry provide yearover-year funding. Many already renewed their commitment for 2025, and the CIF truly appreciates each contributor’s ongoing support.
For more information about joining the program and supporting
the CIF mission to assist collision repair professionals affected by catastrophic life-changing events, go to collisionindustryfoundation.org.
Visit FenderBender.com/news for daily updates from around the collision repair industry.
FIX NETWORK SAYS ‘HOLA!’ FOR GLOBAL CONFERENCE
In the United States, its brands include ProColor Collision, Novus Glass, and Speedy Glass USA.
By JAY SICHT | Photography B y JAY SICHT
FIX NETWORK attracted more than 200 attendees from around the world to its biennial Global Conference, April 27-30 at Playa Mujeres, Cancún, Mexico.
The event brought together executives, franchisees, and engaging speakers to discuss the latest company initiatives and collision repair industry challenges and opportunities.
Steve Leal, president and CEO, spoke of the relationship of Fix Network and its multiple brands throughout the world, which include ProColor Collision, Novus Glass, and Speedy Glass USA in the United States.
“For us, the vision is to be the trusted partner for life’s unexpected moments.” Whatever happens in your life is really what we’re looking to be at Fix Network. If you have an issue with your car, if you have an issue with your windshield, we’re there to help you.”
Leal, who bought his first body shop in 2004, spoke of driving sustainable growth and high performance within a culture of passion and integrity, and he prioritized innovation, diversity, and sustainability.
“My job is always to push the boundaries of everyone in the room to say, ‘What’s the next thing?’”
He announced that every Fix Auto location in Australia is now trained and equipped to fix EVs and hybrids, along with some other inititatives FenderBender will share once the company is ready to share them publicly.
Speaking at the event were multiple high-profile speakers, including former Formula One driver and current IndyCar driver Romain Grosjean, who spoke on “Resilience and a High-Performance Mindset;” leadership and business strategist Matt Havens, who spoke on “Mastering Simplicity;” investment expert Grant Cardone; and Molly Bloom, former Olympic skier and a former organizer of high-stakes underground poker games in Los Angeles and New York, who
David Lingham, (right) strategic advisor to Fix Network, interviews investment expert Grant Cardone, known for his “10X” strategy, about his views on marketing.
Fix Network President and CEO Steve Leal greets attendees.
spoke on resilience, reinvention, and perseverance as she had experienced success followed by adversity multiple times in her life.
Grant Cardone
The investment expert and author, also known for his “Undercover Billionaire” TV show, is known for his “10X” strategy. He’s never satisfied with his success, and shared that although he has 1,500 employees but thinks he should have 15,000. He spoke about the importance of branding: “Anything that’s omnipresent has trust.”
His real estate empire is worth close to $5 billion, and he challenged norms of buying a home and having a six-month reserve as security. Instead, he advised, use that money to invest, as it would grow at rate of 2, 3, even 10x that of the home. And an emergency fund? “You don’t need money; you need people. When you have money sitting in accounts, you get lazy and complacent. Don’t use your cash to fund your emergency; get someone else to fund your emergency.”
Multiple teams gathered from Fix Network franchisees and executives from around the world for beach games.
Romain Grosjean, former Formula One and current IndyCar and IMSA driver, joins VP of Communications Amanda Gun-Munro to speak about the power of resilience. Grosjean was in a fiery crash at the 2020 F1 Grand Prix.
PAINTERS USE PAINT PROS USE XP
Why do so many shops choose Cromax® XP? Maybe it’s because they can achieve a premium finish in as few as two coats. Or that it’s easy to mix, match, and apply. It could also be having access to the most innovative digital color match tools. But we’d like to think it’s all of it.
See what sets Cromax® XP apart from the competition. axalta.us/xp
AUTO TARIFFS LIKELY TO INCREASE COST OF PARTS, REPAIRS
Sheet metal is not expected to be subject to additional tariff categories.
By PETER SPOTTS
THE EFFECTS OF PRESIDENT TRUMP’S 25% tariffs on autos and auto parts will likely disrupt supply chains and increase the cost of autos and auto parts. As consumers pivot from more expensive new vehicles, demand and cost for used cars, repairs, and auto parts is likely to increase as well.
The 25% tariff on foreign-made vehicles went into effect on April 3. The 25% tariff on auto parts should go into effect no later than May 3. Ryan Mandell, director of claims at Mitchell International, expects the industry to feel the effects
later this summer and pointed out some aspects that might help mitigate some of the cost increases.
Two important factors are auto parts compliant with the United States-MexicoCanada Agreement are not subject to the current tariff and sheet metal components appear to be excluded, Mandell said during a special CIECA webinar on Thursday, April 17.
“The USMCA remaining in place is a huge boost to our industry because it really does limit vehicle exposure to the tariffs,” Mandell said.
He added that, “GM, Ford, Toyota, Nissan, and Volkswagen all do a significant amount of manufacturing work, not only in the United States, but in Canada and Mexico as well. And so, in that regard, those goods will continue to move across those borders tariff-free, again with the caveat that the percentage of content not from North America will now be subject to a tariff.”
Steel and raw materials are currently tariffed at 25%, but Mandell said that sheet metal components – including
hoods, fenders, quarter panels, doors, and bumpers – don’t appear to fall under additional parts tariff categories at this time and shouldn’t go up to 50%.
Wholesale vehicles and manufacturing
Complicating factors around the tariffs include vehicle manufacturing. If a car is manufactured inside the U.S., that doesn’t mean it might not be subject to more parts tariffs than a foreign car. Mandell cited National Highway Traffic Safety Administration data showing a significant amount of manufacturing takes place in Korea and Japan with varying levels of foreign-made parts.
For example, the “domestic” Chevy Trailblazer is assembled in Korea and has 52% of its parts from Korea, so the entire vehicle is subject to the 25% tariff. The Honda CR-V is assembled in the U.S. and only 20% of its parts come from Japan.
“The rest of that [Honda CR-V] content appears to be coming from North America and so that vehicle would actually be a USMCAcompliant vehicle, and only that 20% of content that’s coming from Japan would be tariffed,” Mandell said.
He added that just looking at a domestic or foreign-made car brand won’t tell you how exposed a car is to tariffs and it be specific to each vehicle model.
More expensive new cars, and less supply, could drive people to maintain their current vehicles for longer or look for a cheaper, used option. Mandell projects that used car prices will increase 5-10% over the course of the next year as demand increases, lower than the increases for new vehicles.
“The average age of vehicles increased during COVID. We expect the average age of the car parc will increase [here],” Mandell said. “There is a level of inventory on shore now, but overtime you’ll see the prices change.”
Mitchell projects that the increase in vehicle costs will lead to a small decrease in total loss declarations. Mandell projected a 1–3% decrease in total loss frequency based on actual cash values of vehicles and a wider repair threshold under standard 70% actual cash value metrics due to cost increases.
Using the same Hyundai Elantra exam-
Mitchell expects the tariff on wholesale vehicles to increase interest in the used vehicle market. Mandell used the 2025 Hyundai Elantra to illustrate what happens if the full 25% is passed onto the consumer. The MSRP of the vehicle increased about $5,000 from $22,000 to $27,000. Mandell said that new auto sales are doing well as consumers look to get their purchases in before the tariffs start affecting prices, but manufacturers will lower production for cars going to the U.S. once it starts.
increased by about $3,400. It’s a lower increase than the almost $5,000 MSRP increase and gives more relief for repair before it’s declared a total loss.
“That gives you a lot more room to fix that vehicle,” Mandell said. “Our prediction would be that over time, as we start to see more of these vehicles that have been subjected to the tariffs where the price does go up, that we would expect to see a reduction in overall total loss frequency.”
Repair Parts Supply and Demand
Inventory is a big question collision repair shops must deal with. Aftermarket parts are subject to the tariffs and some parts might be more exposed than others. Parts made from sheet metal seem to be the major area not increasing with the new tariff, Mandell said.
The three main categories that fall under the parts tariff include:
• Electrical such as headlamps, sensors, cameras, and tail lamps are more exposed due to the global nature of their supply chains.
• ADAS components use copper, ceramics, glass, and plastics from various sources and cross multiple borders before final assembly and distribution.
• Safety components such as air bags, seat belts, bumper reinforcements, windshields, and steering/suspension parts are all subject to the auto parts tariff.
“Windshields are a big one. We know a lot, especially on the aftermarket, come from mainland China,” Mandell said.
Parts coming from China is that the additional 245% tariff on imports from China does not apply to the auto tariffs. It is “only” the 25% tariff and any changes to other tariffs should not affect the auto tariffs.
“Because it is coming from an industry
that is singled out, it is not subject to the reciprocal tariff,” Mandell said.
As repair frequency and parts demand increases, the salvage market will increase as recycled parts already in the country aren’t subject to the tariff. Mandell expects the cost of repair and repair times to increase, but not at the same level as new vehicle wholesale costs.
Tariff Mitigation Strategies
Mandell ended his presentation with three strategies that can help repair shops prepare for and mitigate tariff effects:
• Increase Supply Chain Transparency: Ask where your parts come from and if there are alternatives available domestically or in the USMCA.
• Repair more parts: Repairing old parts are not subject to tariffs.
• Use more recycled parts: Recycled parts are sourced and dismantled domestically, avoiding the tariffs.
INSURANCE CLAIMS SEVERITY RISING WITH COMPLEX REPAIR COSTS
THE GROWING COMPLEXITY of new vehicles, most of which are not sold with advanced driver assistance systems (ADAS,) is a major factor in steep repair costs, according to SambaSafety. In its 2025 Driver Risk Report, it notes that premium increases have improved the outlook for profitability in property and casualty underwriting, but “commercial auto continues to lag,” suggesting premiums could see additional increases. All figures are sourced from the SambaSafety report released May 15.
Vehicle complexity, including the growing average number of replacement parts up by 15% and lightweight parts that more often need to be replaced instead of repaired,
means repair times are longer and the labor required for this is more specialized. Labor and miscellaenous costs, which include diagnostics, are the greatest contributor, the report cites using CCC Crash Course statistics. “Even minor collisions necessitate the recalibration of sensors and camera systems,” the SambaSafety report notes.
How Tariffs Are Expected to Impact Costs
Editor’s note: As the White House continually shifts its policies on tariffs, this information is believed to be accurate as of press time but is subject to change.
The report notes that imported auto parts made up $84 billion in 2023, citing International Trade Centre statistics, and could further increase costs. In 2024, 82% of car windows came from Mexico, Canada and China, the report cites from S&P Global Mobility statistics. About 10% of imported auto parts originate from South Korea and Taiwan, of which the current imposed tariffs for auto and steel are 25%. “As costs for auto glass, bumpers and other components rise, the effect on auto physical damage coverage will be felt sharply by insurers and their policyholders,” the report notes,
DB ORLANDO COLLISION
By Jay Sicht
OWNER: DREW BRYANT
STAFF: EAST: 14 WEST: 18
SIZE:
EAST: 11,000 SQUARE FEET TOTAL (1,000 IN OFFICE)
WEST: 33,000 SQ FT TOTAL (10,000 OFFICE/TRAINING) (5,000 ADAS/ MECHANICAL) (18,000 PRODUCTION FLOOR)
DREW BRYANT , owner of DB Orlando Collision and monthly FenderBender columnist, had some must-haves when expanding into his second location. He wanted space for in-house training, and he wanted customers to be able to view the repair processes from the lobby. A defunct medical technical college checked all the boxes for the blank canvas he was seeking. With multiple OEM certification programs at his first location, Bryant knew what systems, layouts, and processes worked from his first location (still in operation) to perfect the design of a new shop.
A FACILITY DESIGNED FOR EFFICIENCY
Sitting on four acres with ample parking, the new facility is 33,000 square feet under roof, including 10,000 square feet for training rooms, executive offices, estimator offices, and the main lobby. There is about 18,000 square feet of production space, including two bays for triage and blueprinting. A separate 5,000-square-foot building at the rear of the property allows for ADAS calibrations and mechanical repairs. The vehicle’s wheel alignment is first checked so it can be sent out for alignment before calibration is done. Then it transitions to one of the two triage/blueprint bays, where the vehicle can be assessed with the customer out of the weather.
The new facility includes modular Symach FixLine bays to speed
Photography Courtesy of DB ORLANDO COLLISION
production. Using the CarMover rail system, vehicles move sideways on rollers through each stage. Bryant had proven in the previous location he could essentially double the number of booth cycles using such a rail system, which Bryant wanted to expand.
“What Symach presented was about 80% of what I envisioned. At that point, I really wasn’t price-shopping. They were receptive to what I wanted, and I had the highest confidence of them executing it.”
The new facility includes six bays: 1) Final prep; 2) Pre-prime/QC; then the vehicle moves to the next station, where 3) the Fly Dry’s robotic infrared arm dries the primer. 4) At the Pre-Paint station, technicians use vacuum sanders to sand. It’s then 5) rinsed and masked for paint, followed by the 6) DryKing paint booth, after which the vehicle is driven to the other side of the building for reassembly and final QC.
OTHER UPGRADES
Three Spanesi frame benches are used to perform a baseline measurement on heavy hits and to repair the vehicle at a user-friendly height. The shop is also doing aluminum repair at the new location.
The new location uses Spies Hecker Permahyd Hi-TEC waterborne basecoat for a better color match and to improve technicians’ health. The parts department includes a separate room that uses 3M’s RepairStack to manage materials with key card access and make it a profit center.
Every bay has a 65-inch TV with a synclient touchpad and mouse. This allows shop management to assist technicians in researching an OEM repair procedure.
“We’re really wanting to show them how to get there and to leverage the resources that they have.”
Note: This is condensed from the online version. For the entire story, including Bryant’s planning challenges, many more photos, and a video tour, click the QR code below.
fenderbender.com/55289513
Cooking with Gas
In 40 years, the basic recipe for success remains the same.
Back in May 1985 — 40 years ago this month — I started full-time in the collision industry. It doesn’t seem that long ago, of course, but as I reflect, collision repair has seen many changes since then. In 1985, the most advanced technology in cars was fuel injection. ABS & airbags weren’t yet in any of the domestic cars we worked on. HSS/UHSS steel barely existed, and ADAS, DRP, and MSO were unheardof acronyms. Very few shops knew anything about OEM repair procedures. Clipping cars was common practice. The internet (AKA “the cloud”) was nonexistent, and handwritten estimates are all we had.
With all the changes over the last four decades, are things really that different? In the bible, Ecclesiastes 1:9 says, “What has been will be again, what has been done will be done again; there is nothing new under the sun.” It’s crazy how this verse is a perfect description of the collision industry. The basics are still the same as in 1985. Consumers are still wrecking cars, and shops are still battling with insurers to be paid to fix cars correctly and make a fair profit.
So, if the basics haven’t changed over the last 40 years, what’s the difference between very successful shops and mediocre ones? There are three foundational ingredients to this success recipe:
1. Written Goals
2. Positive Mindset
3. Be Unstoppable
When I bought my shop back in 2000, I had two separate buildings. Over the next ten years, I remodeled both buildings, installed a new paint booth, etc. I am one who doesn’t like banks nor debt and I made the improvements using cashflow. Even though the renovations were completed, I still wished my buildings were connected. In 2011, I met Mike Anderson and that is where my 20-group journey group began with him. In 2013, Mike went to a leadership retreat. Upon his return, he encouraged each of his 20 group members to attend. So, in 2014, I attended. And it was life-changing for me.
Mike Jones of Discover Leadership, based in Houston, taught us we only get one life to live and no do-overs, thus we must make the most of it! One concept that I think of every day since then is that in life, we have a choice to be either the flag or the wind. When we are just the flag, the wind just blows
us wherever it wants. That wind can be others or circumstances. When we choose to be the wind, we for the most part control the outcomes of our life. Otherwise, WE must make change happen, rather than just hoping things change.
After Discover, I decided I was going to build a new shop. My shop had been at the same location since my grandpa started it in 1951. So, I decided to build a big 12,000-square-foot box over my two existing buildings and demo everything underneath except the paint booth and office. Was it crazy? Of course, but in 2016 it became a reality. During the construction it was the hardest I had ever worked in my life, and we kept fixing cars the entire time. I even had newspapers wanting to write stories on it.
Back to the recipe for success:
We must have Written Goals and then start visualizing them as already accomplished feeling that success, like an athlete who sees themselves crossing the finish line. Start with small achievable goals to boost our confidence. By reaching small goals, we build courage to accomplish much larger goals. Don’t forget to set deadlines, as we can’t live in someday, where someday I will do this or that.
With a Positive Mindset , we can use affirmation statements like, “I am a great businessman,” or how about this one: “I am a great spouse.” Making them visual and even repeating them is crucial. I remember when I was in school, I was envious of the kids who were smarter than me. The reality is, 50% of the smartest people on the planet work for someone else, and we must not sell ourselves short. We can even use gratitude journals and write down three things at the end of each day we are thankful for. Lastly, we must do everything we can to avoid negative people, no different than if they have the plague.
To Be Unstoppable , author Brian Tracy explains, it’s like a mountain stream that eventually finds its way to the ocean. It wasn’t easy, but it got there with relentless determination. We can’t succumb to problems but focus only on solutions for ways to adapt and persist. Bumblebees shouldn’t be able to fly due to their body weight vs small wing size, but by rotating their wings in a figure eight they create vortices (hurricanes) and can then take to flight.
GREG LOBSIGER
Greg Lobsiger has owned Loren’s Body Shop in Bluffton, Indiana, for over 23 years. He has been a member of Mike Anderson’s groups for ten years and had extensive lean manufacturing training.
EMAIL: greg@lorensbodyshop.com
ARCHIVE: fenderbender.com/lobsiger
EVOLVING INTO THE
This EV specialist boasts an average repair turnaround time of a fraction of the industry average for EVs. Take a behind-the-scenes look to see how.
BY NOAH BROWN | PHOTOGRAPHY COURTESY OF EVOLVE
Developed From The Ground Up
CEO John Sweigart says each step in Evolve’s custom-built process is essential to keep cycle times low: 10 days keys-to-keys compared to its own figures of 37 days for the national average.
It doesn’t take much time for a “new fad” to become standard, and some people in the automotive industry believe we’re seeing that with electric vehicles.
When the original iPhone was released in 2007, a lot of people were unsure about what exactly the device was.
Smartphones weren’t new – there were about 22 million sold in the year before the iPhone’s launch – but the market-leading Nokia E62 and BlackBerry still resembled traditional cell phones. The iPhone, on the other hand, didn’t look like a phone. Instead, it resembled something more like Apple’s popular iPod line of MP3 music-playing devices.
So was it just a phone? Could you listen to music on it? Why did it need a touch screen, and where is the keyboard? Those questions
seem silly now nearly 20 years later, but they were asked often of the device. Belief in the iPhone’s ability to draw a large audience was slim in 2007.
Steve Ballmer, CEO of Microsoft at the time of iPhone’s launch, was among the skeptics. In an interview with USA Today in April 2007, Ballmer said, “There’s no chance that the iPhone is going to get any significant market share,” calling Apple “edgy” and saying they would be lucky to get 2 or 3 percent of the total market share on cell phones.
To put it lightly, that take didn’t age well.
In its first year, the iPhone sold around 6 million units. Fast-forward to 2025, and nearly 1.4 billion people use iPhones, representing nearly 22 percent of total smartphone usage in the world.
Though it may seem like the iPhone’s meteoric rise to global phenomenon status was inevitable looking back, many people discounted it during its early years. Every year, though, more and more people began buying the Apple cellular device. The trend gained momentum, and the trend became the status quo.
EVs during their first few years in the mainstream market have seen a similar cult following that the iPhone had back when it first released. Though we have yet to see just how far the electrification trend will go, EVs have gained a foothold in the global car parc, and their total sales keep increasing year over year.
John Sweigart has seen a lot of trends come and go in his nearly 30 years in the automotive business. He’s worked in almost every branch of automotive repair imaginable, from collision centers and ride share operations to industry publications. For nearly three years from 2016 to 2018, he also worked for Tesla, eventually becoming their global service director. He’s become an EV repair expert and one of the leading authorities on EVs in the collision aftermarket.
And he thinks EVs are here to stay.
“Obviously, the adoption of EVs, the rate of acceleration is far greater than what was predicted early on. We’ve passed that market share,” Sweigart says. “I think 5 percent is sort of the magic number where it’s not a fluke, so there’s enough evidence that this is actually happening and it’s not some kind of fluky event. It’s a viable product for the market. There are way more of these things on the road than ever before.”
There were more than 4 million EVs on the road in the U.S. in 2024, which is double the number that were on the road the previous two years. New EVs accounted for almost 10 percent of new vehicle registrations in 2024, and some experts predict
Avoiding Workflow Interruptions
As a vehicle moves through Evolve’s repair “assembly line,” the team is constantly looking for areas where the process gets bogged down to make improvements.
anywhere from 30 to 40 million EVs on the road by 2030.
Sooner or later, you’re going to start seeing EVs show up in your shop — if you haven’t already — and Sweigart says to be prepared, you must think about collision repair in a whole different way.
“(EV and ICE repair are) just not the same thing, and the sooner we pay attention to that that the better this gets,” Sweigart says. “It’s going to require wholesale radical change of how we think about everything.”
TIME TO EVOLVE
Evolve Electric Vehicle Specialists in New Castle, Delaware, was founded in 2022 as a solution to fill the gap in EV repair services caused by the divide between what is required to fix ICE and EV technologies and systems.
On its website, Evolve says it takes an average shop around 45 days to start an EV repair and around 37 days to actually perform the work. At Evolve, it takes less than a quarter of the time, with a two-day wait and a 10-day turnaround.
Sweigart is the CEO of Evolve, and he says they’re able to achieve this level of efficiency
in EV repair because they’ve completely rebuilt from the ground up the way they look at vehicle repair.
“That’s why we don’t call ourselves a body shop. We’re an electric vehicle support business,” Sweigart says. “Even the name, Evolve, shows that we’re really trying to push that we’re different.”
You don’t have to look too far to notice the difference. The shop floor at Evolve has been laid out like an assembly line in a factory instead of a traditional bay system. Big TV screens in each station point to what’s next, who should be where, and provide any additional information in an effort to make sure that team members know what they’re doing at all times.
Sweigart says this model was based off the (lean) Toyota Production System, and it’s a system that prioritizes continuous improvement by quickly identifying problem areas. When a vehicle is moving through Evolve’s repair “assembly line,” Sweigart’s team is constantly looking for areas where the process gets bogged down to make improvements.
The point isn’t to avoid interruptions in the workflow. Instead, when an interruption inevitably comes up, it provides an opportunity for his team to find a solution and improve.
“In creating our workflow, we’ve thought through the logical sequence of events taking a customer from ‘help me’ all the way through ‘thank you,’” Sweigart says. “We then sort out the best-known way to perform each one of these steps and standardize the work in that step. We then right-size the work in each step
so that we have a chance of creating flow of work between all steps from ‘help me’ to ‘thank you.’”
One primary method in which Evolve optimizes that workflow is in how it manages parts inventories.
Normal parts estimates aren’t as efficient because EV manufacturers such as Tesla don’t have dealer networks to distribute parts; any order for a component goes directly through the company’s supply chain, and that order competes with the manufacturer’s own assembly plants.
To combat this, Sweigart says Evolve keeps a stock of parts on-hand at all times. Though it’s not an exact science, he says the process follows some basics of supply chain management.
“In terms of what we stock and when we re-order, it’s roughly based on parts that we’ve experienced lead-time issues with,” he says. “We tend to stock the high-moving parts as well as a few of the one-off type parts that can cause massive delays such as control modules or wiring harnesses.”
For example, Sweigart says if they use one type of part three times a week and it typically takes three weeks to get that part, they’ll set a minimum order of nine so they’ll always have that part on hand.
“It’s certainly a different type of expense than what traditional collision repairers are used to, and there’s a real cost when you do something like this,” Sweigart says. “We believe the benefit comes in cycle time reduction, which leads to greater customer satisfaction - which leads to more volume.”
Another key way to solve problems as they arise is to have technicians who are trained not only to identify problems, but who are also empowered to come up with solutions. That, Sweigart says, is one of the foundational principles of Evolve’s training programs.
Evolve is certified by Tesla and Rivian, but its certifications and training for its technicians go far beyond standard OEM procedures. The shop says it can repair any make and model of electric vehicle, and Sweigart says his team has developed around 90 percent of its training internally.
“While we do utilize the training that is available through the manufacturer and other sources like I-CAR, because of the nature of our operating model, we only need to train technicians for specific functions and specific areas.”
Sweigart likens Evolve’s training process to teaching someone how to play the piano –it’s more about training for the general skill than it is for a specific type of car.
“Once they understand (the basics) of how to play, we can put the sheet music down for almost any song,” Sweigart says. “We don’t have to train them to play every song in the songbook.”
If a technician understands how to calibrate a radar in general, they should be able to figure out how to calibrate a radar on most vehicles with the proper OEM repair
procedure and repetition. Though systems will be different depending on the vehicle – for example, calibrating a radar on a Kia will look slightly different than on a Tesla –the basic principle is mostly the same. Through this training model, technicians are able to slot into the assembly line process right away and contribute to the shop’s productivity. From there, Sweigart says the goal is to have them learn all steps of the process at all levels, which means they become more reliable and useful.
“The people in each step are trained and certified in not only how to do that stuff, but ultimately in how to improve that step. So, in no circumstance will you see that traditional “one man, one car” work processing, which delivers a very inconsistent level of quality and rate,” Sweigart says. “It’s what Henry Ford did to automobile manufacturing, just better.”
STRIVING FOR CONSTANT IMPROVEMENT
In a way, Evolve is the iPhone of the EV collision repair industry – ahead of its time, but also possibly a harbinger of larger changes coming in the not-too-distant future. Swei-
Don’t Call It
A Body Shop Evolve bills itself as an “electric vehicle support business.
gart says more shops are going to need to adopt similar philosophies to handle the growing wave of EVs, which at this point seem to be inevitable.
“As we adopt EV and self-driving more and more, we’re going to need an understanding in the industry,” Sweigart says. “We can’t be the only voice. The more people out there really being transparent and honest and talking about the problems, the better it’s going to be for all of us.”
Each step in Evolve’s process is essential to keep cycle times low. None of them is easy to implement, either, which is why Sweigart and his team developed Evolve from the ground up instead of trying to overlay one or two of the changes onto an existing shop. It would be almost impossible for an existing shop to overlay an Evolve-style workflow onto their current operation, especially if it’s working on both EVs and ICEs.
However, focusing on educating your techs and yourself, as well as constantly reflecting on and improving your processes, is a great way to keep evolving to handle EV repairs.
“Spend as much time as you can diagnosing the problems yourself. You have to dig deep on every issue and go down every rabbit hole when it comes to understanding what’s causing a certain condition,” he says.
“If you’re not prepared to do this digital work yourself, you’re going to wind up spending a ridiculous amount of time and money with third-party sublet companies and all that comes with that.”
EVs aren’t going anywhere, and if your shop is going to handle repairing them effectively, Sweigart says a different perspective on process improvement isn’t just helpful – it’s essential.
“If you’re going to live in a world of continuous problems, which obviously you must do if you’re going to live in a world of continuous improvement, you must understand which problem you should fix today,” Sweigart says. “Otherwise, you live in a world of hell surrounded by nothing but problems.”
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THRIVING FOR ANOTHER CENTURY
Proud of their legacy, Hollingsworth Auto Service’s family owners have pivoted to meet the industry’s shifting needs.
By Lindsey Gainer | Photography By Bailey Davidson
The photos and documents hanging on the walls of the lobby at Hollingsworth Auto Service — a 108-year-old shop in the heart of Savannah, Georgia — paint vivid pictures of a bygone era.
Looking at the workers posed next to a vintage 1930s automobile outside the original shop, or an estimate written during the Great Depression for a mere fraction of the average $4,500 RO these days, it’s easy to imagine where it all began.
But despite how much cars have changed in over a century of business, one thing has always stayed the same: Hollingsworth’s steadfast commitment to the people driving them.
“We are an old business in a very old city, and our legacy is something we take very seriously,” says fourth-generation owner James Ivanowski, the great grandson of founder E.E. Hollingsworth. He now co-owns the shop with his mother, Linda Ivanowski. “My mom keeps our legacy alive; she keeps everyone reminded of our history that few others remember,” he adds, saying her relationships within the community and familiarity with the customers is a huge boon to the business.
“Our brochure says it all: ‘The customer always has and always will come first. We stand behind all our work. We are not happy until you are happy. That’s why we guarantee all repairs.’”
It’s undoubtedly why the shop still works on the cars of their original customers’ families, all these years later…and why they’re sure to still be working on the next generation’s for years to come.
Thriving for Another Century
People often ask Ivanowski how the family has managed to keep the business going for so long, and his answer is always the same: determination and grit, which he says have “always been a part of the shop’s culture” no matter who was running it. That, and “the way we treat our customers, the way we treat our employees, and our dedication to quality repairs.”
Every owner has fully realized that “the shop is bigger than any one person” — that’s been a constant for over a century. A lot of people — around 40, to be exact — depend on the shop to support their families…and that’s
The Next Generation: James Ivanowski’s (left) oldest son, Jonah, works as an estimator and is involved in most high-level decisions for the business.
not something Ivanowski, nor his predecessors, take lightly. Creating a stable, supportive work environment with opportunities for growth is imperative, and something every generation has worked tirelessly to maintain.
“E.E. walked the streets writing estimates. Howard Sr. would work seven days a week, 14-hour days to repair fleet vehicles for the city government after normal working hours. Tough times sometimes require tough measures. The shop has survived through the Great Depression, floods, market downturns, and countless other challenges,” James says, “but we’ve always come out the other side… we’ve always found a way.”
Essential to finding that way, he says, is remaining flexible and keeping the ability to scale the business up and down without ruining it…which is a big reason they took the opportunity to partner with Certified Collision Group (CCG).
“We saw it as a great opportunity to increase our footprint in the OEM certification area. We really believe that the future of referrals will shift toward OEMs pushing work
to qualified and certified shops. There are so many factors involved in returning a modern vehicle to pre-accident condition, and there are so many variations between OEMs as to how to achieve this end goal. OEM certifications provide a streamlined process to obtain the proper training, tooling, and repair procedures to fix modern vehicles.”
Joining CCG, he says, positions the business to add additional OEM certifications to their existing five at their own pace.
Hollingsworth also has about 10 carefully curated DRP partnerships with companies who align with their standards, allowing for a streamlined repair process and maximized efficiency — although neither shop relies on DRPs for referrals, given their strong community ties. That may change in the future as they move into locations unfamiliar with the shop’s history. But for now, they’re focusing on certifications and capturing direct referrals from manufacturers.
“With some OEMs reporting accidents at the time of loss to their certified repair network, there’s an opportunity to become the
A Walk Down Memory Lane
“When E.E. Hollingsworth first opened the shop in 1917, he’d just moved to Savannah from Rex, Georgia,” James Ivanowksi reminisces.
Immediately noticing there was a need for an automobile repair shop in town, he opened Hollingsworth Auto Service downtown, directly off the “Dixie Highway” — a route well-traveled by many southerners at the beginning of the automobile age, thanks to its abundance of service centers, dealerships, and “motor lodges.” (The current downtown shop is just two blocks from the original).
Ivanowski beams with pride as he recalls how his great-grandfather worked tirelessly to grow the business, even walking up and down the street during the Great Depression writing estimates on his neighbors’ cars to drum up work.
The shop’s next owner, Howard Viar Sr., arrived in Savannah in the 1940s, continues Ivanowski, fresh off a Liberty ship following World War II. After marrying E.E.’s daughter, Sybil, he came to work in the family
business and took ownership in the early 1960s upon E.E.’s passing.
Viar Sr. became heavily involved in early automotive repair associations and was the first president of the Independent Garage Owners Organization, Ivanowski says, pushing for apprenticeship programs and licensing requirements in the industry.
“Just like today, the collision repair industry in the 1950s and ‘60s suffered from a shortage of qualified technicians. He
really tried to think outside the box to find talent, even hiring Chinese technicians from a work abroad program.”
When the shop’s third and fourth owners — James’ uncle, Howard Viar Jr., and Howard’s younger sister, Linda Ivanowski (James’ mother) — joined the company in the 1970s, the focus of the shop changed.
“My uncle’s era as owner is really marked by a drastic shift to financial and process modernization within the business.
Founder Edward Eugene “EE” Hollingsworth, third from left, poses with a “before” pic of a Chevrolet in for repairs in this undated photo.
first point of contact for a potential customer after a wreck,” he says. “This adds more value to an OEM certification as a referral source in a time when insurance companies are more and more uninformed on what it takes to properly repair a vehicle. I can see the value of the OEM certification increasing while the value of the DRP agreement as we know it decreases.”
The Next Generation
A career in the family business wasn’t part of Ivanowski’s original plan.
“I worked in the shop throughout high school and then went to college in Atlanta,” he recalled. “In 2003, I graduated from Georgia State University with a degree in finance and was hired as a corporate financial analyst for a very large P&C insurance carrier in Dallas, Texas.”
He didn’t know it yet, but that experience would be invaluable for the family business.
“When I was visiting home in 2006, my grandfather, who was long retired, asked point blank if I was, ‘gonna come home and run the family business, or what?’ I said, ‘of course,’ almost out of surprise. My only
He ran the shop by the numbers and began focusing on profitability. He’d always say, ‘Run the shop, don’t let the shop run you.’ He understood the importance of working ‘on’ the business, not just ‘in’ it. He also wanted the family to have a life outside of the shop; work-life balance is still a very important part of our culture.”
Sadly, Howard Jr. died unexpectedly of cancer in 2001, leaving Linda with “big shoes to fill.”
“After working her entire adult life at the shop, she had done just about everything and was prepared to do whatever it took to keep the family business going,” James says. And keep it going she certainly did.
A “trailblazer” and staunch advocate for women in the industry, Linda never shied away from tackling any job in the shop — even the ones traditionally done by men — and she’s still the backbone of the shop to this day, according to Ivanowski.
“People come in the shop all the time just to visit her,” he says, and she’s the glue that holds the family together. “She always puts family first and makes sure the rest of us do the same.”
The privilege of working side-by-side with his mom every day isn’t lost on James, who says he doesn’t take their partnership for granted.
Echoes from Generations Past
If the past generations could see the shop today, Ivanowski thinks they’d be “amazed,” not only by the growth of the
shop and the complexity of the vehicles and tooling used to repair them, but also the business savvy it takes to be successful in the industry.
“Perhaps they’d be amazed that the shop is still open, too,” mused Ivanowski, “but I’d like to think not. I’d like to think they would just be proud that the legacy continues on.”
Tracking Workflow Annual revenue was $1 million when James Ivanowski (not pictured) took over the business; in part through process improvement, he’s been able to grow that to $10 million.
stipulation for accepting was that I needed to add value to the company — so I flew back to Texas with an arm full of Hollingsworth financial statements and got to analyzing.”
Through benchmarking KPIs he located online, Ivanowski found that there was “plenty of room for improvement in process and profitability” at the shop, so he accepted his grandfather’s proposal and joined the business in 2006. His tenure — much like his uncle before him — has been focused on modernization, process improvement, budgeting, forecasting, profitability, shop culture, and sales growth, he says. And he’s certainly had the success to prove his methods — in the year before James took over, revenue was around $1 million; it’s since grown to $10 million+ a year.
Now, almost 20 years later, Ivanowski’s oldest son, Jonah, is also a part Hollingsworth, having recently graduated from Furman University with a degree in communications. While it’s yet to be seen if Jonah will make his career in the family business, James is hopeful, saying he sees a lot of leadership potential in his son.
“I see so much of me in him when I first came back in 2006, a couple years out of college and wanting to make a difference and keep the legacy going,” Ivanowski says.
Currently working as an estimator, Jonah’s turning in “impressive” sales numbers each month, and is involved in most highlevel decisions for the business.
“He’s already made a big difference around here and brings a younger perspective that is attracting younger talent to our
team…and he’s networking with industry leaders and local families we have done business with for generations.”
The father and son are also part of AkzoNobel’s Acoat Selected North American Performance 20 Group, which James says has been “immensely valuable.”
“We trade ideas on how to better our business by improving processes, staying up to date on industry trends, improving customer experience, marketing to new and existing customers, finding and training new talent, and a host of other topics. I think 20 groups are important opportunities to step out of the day-to-day hustle and bustle of your business and into more of a business analyst role, to evaluate how our shop stacks up against everyone else. We feel like if we are not getting better, we are falling behind.”
Growing for the Employees
Jonah’s interest in the business has reignited his own passion for it, too, says Ivanowski, who’s now more interested than ever in expanding the shop to more locations — not just for Jonah, but for their other loyal employees, too, many of whom have been with the shop for decades. “Our employees are truly like family to us,” Ivanowski says.
“I think of growth a little differently than some; to me, growth is a means to reward your employees, to provide them with opportunities for leadership positions and upward mobility. The only way to create those positions is to expand.”
As part of this growth strategy, James and Linda opened a second location in West Savannah in August 2024 — a brownfield they converted from an old warehouse that’s about half the size of their downtown location. The idea, Ivanowski says, is to figure out how to make the business scalable for multiple locations — a model for future expansion. The team also uses the shop to trial process improvements that enhance efficiency and output, so far with great success…the new shop is already operating on a backlog.
But no matter how many shops the family opens in the future, one thing is certain — they will remain independent.
“We have always been — and will always be — fiercely independent,” Ivanowski says. “We started as a family business and that’s what we’ll always be.”
To keep a shop thriving and moving forward, something that’s often seldom talked about, Ivanowski says, is strong mental health.
“In an industry that’s constantly changing and highly stressful, you must take care of your mental health,” he implores, saying he’s seen too many people lose their physical health because of industry stressors. Keep your focus on the here and now, he advises, and don’t worry about the future.
“While it’s certainly important to be future-minded — planning in reverse for the goals you want to achieve and staying up to date with new tech and where the industry is headed — there’s no use in stressing over it,” he says. “That will eat you alive. You have to live life on life’s terms.”
Fiercely Independent Hollingsworth expanded to a second location in August and plans further expansion while remaining a family business.
IS YOUR COLLISION REPAIR SHOP A DISTANT MEMORY?
How digital marketing maneuvers can help keep shops top-of-mind with customers old and new.
By CAROL BADARACCO PADGETT
CAN YOU REMEMBER WHAT YOU WERE DOING on any given day 15-20 years ago? Where you went and who you saw there? Probably not.
The trouble is, 15-20 years is an estimated timespan between collisions for most of your customers.
According to statistics at carinsurance.com, the average driver will wreck a car only three to four times in their life — that’s essentially once every 18 years, it reports. So odds are, if you repaired a customer’s vehicle the last time they crashed, you probably won’t be on their minds the next time they do.
Collision repair digital marketing expert Megan Fulkerson says there are ways to fix that.
The Backstory
In 2015, practically no one in collision repair was using digital marketing, according to Fulkerson, who’s now managing partner and a digital strategist for 3P Marketing based in Evansville, Indiana. She was fresh out of college back then, new to the collision repair industry, and working in marketing for a multi-shop operator (MSO).
By the end of 2019, that MSO was bought out by another larger, long-running MSO with shops all around North America.
“Our then-CEO, Jimmy Lefler, and I decided to start 3P Marketing then because we were heavily active in the [industry], and our friends across the country wanted the digital marketing tactics we had utilized to grow our market share,” Fulkerson says.
The Challenge
When a driver suddenly needs a body shop, it’s a total surprise and they’re usually upset. Add to that, they have little time to think about where to tow their car for repairs.
“Customers don’t know when they’re going to get into a wreck, so they don’t have time to shop around,” Fulkerson says. “There’s just an urgent need to get their car repaired.”
That urgency can either be to a shop owner’s advantage or disadvantage, depending on the condition of the shop’s digital presence, marketing experts like Fulkerson report. That’s because most people will pull out their mobile phones to begin the search for a collision repair shop.
At that very moment, it’s important for a shop to have an appealing, functional, updated website that can quickly answer a crashstressed customer’s questions. Most repair shop websites aren’t up to the task, though, Fulkerson finds, making website design one of 3P Marketing’s key offerings.
“We find so often that collision repair shops have old websites, but you have to think of the website as the employee that’s working 24/7/365,” Fulkerson says. “It’s important that it loads fast and that its content appeals to search engine algorithms. If the site won’t load, potential customers will just go to the next shop listed on Google.”
The Solution
Along with a great website that loads fast, Google Ads are an important component in successfully marketing an auto repair shop because they help drive traffic to a shop’s website in the first place.
Google Ads works by allowing businesses, collision repair shops in this instance, to display their ads on the Google Search Network and YouTube. And these are key places necessary to both build brand awareness and instantly put a shop in front of someone who suddenly needs its services.
Fulkerson describes it like this: “Google Ads (once called Google AdWords) help ensure that when someone searches ‘collision repair’ that your shop appears in one of the top spots. The most clicks will go to shops that appear in the top three spots.”
Specialized services like BMW repair certification, for example, can be utilized
as a search term for a shop’s Google Ads and on its website, and this helps to target specific customers.
Another important digital tactic is to make sure your shop uses video in its digital marketing, because video attracts attention. “Whether it’s video your shop hired a videographer to shoot or video shot on an iPhone, our team can put together 15- to 20-second spots and place them on Facebook, YouTube, or [run them] across a variety of different streaming platforms,” Fulkerson says.
She adds, “Video is a newer component of a shop’s digital marketing, and in the past year and a half it has become very important. But almost every shop is missing this today.” Apps, too — are they in play to digitally market collision repair shops? Not so much, in Fulkerson’s experience.
However, geofencing — or putting a digital fence around competitors’ shops to see who’s visiting them digitally — is an older digital marketing tactic that Fulkerson says can be highly effective.
With geofencing, a shop can place an electronic fence around the roofline of competitor body shops and can then target ads to the individuals walking into that location. According to Fulkerson, geofencing is best used as part of a multi-approach campaign that pulls in a few different digital marketing tactics to ensure your ads are meeting that potential customer, regardless of how they are looking for a collision repair center.
The Aftermath
The hardest-working digital marketing campaigns will not be rigid and can bend and flex to match a repair shop’s business needs.
As an example, Fulkerson notes, “We can switch lanes on a digital campaign if a repair shop’s backlot gets to be too much. For instance, we can take a break and switch to a hiring focus.”
Digital marketing services can also change with the weather — through a tactic called weather targeting.
“We live in an area where there’s hail 10 times or so per year. Any time there’s a hailstorm out, we want our clients to be the fastest to get out their hail [repair] messages. That way, they can begin taking
appointments the next day for hail damage assessment,” Fulkerson says.
She adds, “We take the stress off our clients by doing weather-based targeting for their city. So if it hails or snows, for instance, a certain set of ads is going to run.” For example, if there’s a 90% probability that it will hail, 3P’s team can create hail damage-related ads and set them up to run automatically.
“Shop owners like that because they don’t have to worry about getting their message out when weather events come,” Fulkerson says.
The Takeaway
Digital marketing tools for collision repair businesses are designed to keep shops top-ofmind with drivers nearby — people whose car accidents are probably spread out with years in between.
“We’re able to target people who are looking for collision repair in real time,” Fulkerson sums up. “You want to direct them to visually appealing, easy-to-use websites … having a good website that appeases the algorithms on Google is critical right now.”
Marketing experts like Fulkerson always tell business owners not to expect instant results — because like a car crash, there’s a buildup of energy just before the collision.
“Digital marketing will take a few months. Don’t start a digital marketing campaign to only run 30 days and [go] off. Try not to lose all the momentum,” she recommends about the process of building brand awareness.
In the first few months of running a shop’s digital campaign, marketing specialists are working to home in and decide which tactics are working best for the budget. And from what they learn, they’re able to share reporting and data so owners understand how digital efforts are shaping up.
In the end, the ultimate goal is to target that customer who hasn’t visited your shop in a long time—making it more likely they’ll choose you to repair their vehicle based on the message included within the ad they saw, such as a focus on safety, proper repairs, vehicle certifications, etc. And then they’ll know you’re there for them the moment they need you.
OPTIMIZE THE LABOR HOURS AVAILABLE TO YOU
Of your shop’s gross profit, 60% is from labor production on vehicles. Here is how to maximize that output.
By STEVE TRAPP
HAVING RUN HUNDREDS of performance groups over the past 40 years, I was challenged by FenderBender to recap the main topics the groups discuss. So, this will be a four-part series focusing on ideas to optimize: Labor, Parts, Paint and Material and Sublet, and Overhead expense reduction.
Opportunity: Optimizing Labor Hours
We start with labor because Labor gross profit makes up 60% and more of the typical shop’s overall gross profit dollars.
After a few hours of discussion at the very first paint performance group, Ed Mohr, owner of Exclusive Auto Body near
Los Angeles, shared wisdom with his fellow members. “Let’s be honest with ourselves. Those who are successful in our industry know how to best optimize the total labor hours produced from the productive staff during the hours we pay them to be there for.” We as a group then did the math: 10 technicians working 8 hours a day is 80 hours available. And with 5 days in a week, that is 400 hours. We need to track how many total labor hours we deliver in that period. Did you sell the jobs for them to work on? Did you write a complete sheet to get paid for their effort? Did you provide the training and tooling for them to safely repair vehicles? Do you have the right parts and material available? It is that simple. If the shop output is 400 hours, your productivity is 100%, but if your output is 800
DENICE WOLLER PHOTOGRAPHY
hours, productivity is 200%. “The shop with 200% productivity probably has processes that should interest us!” It is from there the first paint performance group took off.
Utilization, Efficiency and Productivity
No conversation relative to labor would be complete without a review of these terms.
First, Utilization = Hours invested working on vehicles - 32 / Hours Attended – 40 = 80%. Improving utilization requires the shop to have the administrative staff focused on keeping the technician in their stall. Leaving the stall looking for the vehicle, the critical parts needed to complete their process, the supplies (Kanban), the payer approval, tooling and maintenance (5S), and training affect this. The best way to learn how to improve this is to build a relationship with the staff and then ask them what slows or distracts them. Often, this results in a negative spiral as morale suffers and performance slips even further. It is at that time technicians start listening to the competitors’ recruiters who call them periodically.
Next is Efficiency = Bid Hours Completed: 60/Hours invested working on a vehicle: 32 = 187.5%. Efficiency ignores the distractions of utilization and focuses on what the technicians can do with the time they invest working on vehicles. Efficiency can be improved with the availability of OEM procedures, OEM or I-CAR training, related experience, technician time management (such as disassembly and transfer versus bag and tag and put back together days later) and inspiration of the technician (which could be inspired by their leader or a positive pay plan). This could take the form of a painter being able to paint without debris. This avoids the extra time needed for buffing by either the painter or prepper (which is worse, as less paint work is being prepped!)
Finally, Productivity is the sum of both Bid Hours - 60 / Hours attended – 40 = 150%. So to improve productivity, you target either time utilization or employee efficiency.
Can you boost labor sales or better invest your labor cost?
Obviously, improving the compensation for labor can assist the shop in optimizing labor hours. The advent of ADAS has changed the target sales mix from 30% body labor, 20% paint labor, and 10% material reimbursement. It’s now 27% body labor, 15% paint labor, 9.5% paint and material, and 9-15% sublet, with the remainder from parts. The average labor hours per RO are benchmarking 15-17 total body labor hours and 8-9.5 total paint labor hours, or 23 to 26.5 total labor hours per RO. Vale Tech, Collision Advice and others specialize in training estimators to get paid for the necessary work. This article does not hope to teach the ways to grow the total (body and paint) labor hours per repair order. Failing to focus on getting paid fair compensation for work performed is demoralizing for the staff and denies the repair center proper compensation for work performed.
Repair vs. Replace
A recent study proved that for non-welding tasks, a technician’s efficiency on removeand-replace tasks leads to 100-115% efficiency, while the technician’s efficiency on repair judgment time can lead to 150-250% efficiency. Because replacement is easier, technicians tend to limit themselves by preferring to replace parts. You must wonder if the technician understands this math: they have 40 hours to work, and if they performed repairs with 100% efficiency of either type of work, then they would get paid for just 40-45 total labor hours when replacing versus 60-100 total labor hours in a week repairing. The only difference is using their skills to do metal shaping to make them more money and lower repair costs for the end-customer.
How can you assist them with this? You can purchase tools to minimize damage such as PDR tools / training, glue or tab pulling tools/training, air suction pulling tools, and
encouraging things like using a 3” DA to help keep the repair area of minor damage small so they can optimize efficiency on repairrelated tasks.
Optimizing Labor Costs
No one wants to deny their staff the ability to earn a solid wage for the work completed. Let’s explore pay methods which can encourage quality repair output with repairs of varying complexity, while optimizing labor gross margin.
Hourly Paid Staff Costs
The hourly pay method is preferred by technicians in rural areas or areas with seasonal repair cycles. It is preferred by leaders who want to ensure that quality and teamwork are the backbone of their culture. Hourly-paid technicians who are highly efficient can drive up to 70% labor gross profit, but we have seen them as low as 50%. We have found that explaining the target or goal efficiency and then tracking performance can be a great motivator for the hourly staff.
To calculate the expected labor hours, use this calculation:
Hourly Wage Cost Paid to Staff Member: $35/(100% - 62% (target gross profit)) 38% cost budgeted per hour/$92.11, then divide that by the average compensation rate of $80 (for example) = 1.16 (or a 116% efficiency goal), then multiply 1.16 * 40 hours worked in a week = 47 total labor hours delivered is their target. Good leaders set these goals, review their performance weekly as they hand out paychecks, and ask them what we can do to assist them to improve in the future.
Hourly Incentive
Using our example, then, for every hour over 47 the labor gross profit is 100%. So, some repairers who realize they need to reward their staff for exceeding that goal pay 1020% of the incremental hours. If the labor rate is $80, a 20% incentive means for every
hour over 47 they would be paid $16.00. So, if they produce 57 hours, or 10 more than their goal, they will earn an incentive of $160.00. If they can sustain a higher level of output over a 3-to-6-month period, it is incumbent on the shop owner to consider an hourly rate increase / raise.
Flat-Rate or Commission Staff Costs
The flat-rate (or commission) pay method is preferred by technicians in markets with a steady flow of work and confidence in their ability to safely and productively repair vehicles. Repairers don’t have to manage the staff’s motivation level as closely, as their pay is directly affected by their level of effort. The challenge is the labor market remains quite tight during a technician shortage. This inspires employers to offer to pay a higher flat rate to attract technicians from another shop. Labor gross profit with flat-rate technicians tends to be paid 35% -45%, resulting in 55% to 65% labor gross profit.
Ways to Improve Flat-rate gross profit levels
With the skill level being quite different from apprentices to journeymen to master technicians, you may want to consider offering a varied pay method based on the type of job. The small gravy jobs tend to get fought over and the train wrecks are harder to in-
spire them to repair. So, consider setting employees up based on the levels of repair they work on and then accumulate the flat rate pay earned. Here is an example assuming an $80 average reimbursement:
Another way to reward the top performers who work on ROs with more repair procedures is to offer a sliding flat rate based on sustained output in a pay period:
This model allows you to discount cosmetic repairs and is made up for when you get paid a higher labor rate for OEMcertified repairs, frame/structural, or mechanical labor.
This model rewards them for repairing more and using their time and equipment wisely. These methods “feed your eagles” so they feel acknowledged for doing the more difficult repairs, and you thus retain them. Remember, losing one “eagle technician”
can cost you 30% in annual wage in lost production, recruiting, new hire, and training costs to replace them.
Added Value-Upselling Benefits
Another source of bid labor hours per RO is to review the vehicle and ask the customer to opt-in to get an estimate to repair unrelated prior damage or a detail package. The repairer can offer a discount on these repairs which can be completed “while you’re here.” Repairers can add these hours to technician hours produced/pay and add a small incentive (10% for the estimator) because all the non-value-added costs (create a file, check-in, pull into the booth, detail, etc.) are covered by the repair.
Why doesn’t my labor cost from my management system match my income statement?
The management system merely records the flag hours paid on a job and the time clocked into a job. The income statement reflects the total amount paid to the technicians, which includes time for new-hire orientation time, training time, time working with a mentor, time repairing tools, time on vacation/PTO. One way to capture these costs is to record them throughout the month on an internal repair order. It is my view that any time not invested working on the vehicle for training needs to be moved to overhead in training costs, and things like paid time off need to be recorded as an employee benefit cost and paid out on a per-pay-period basis (preferred) or accrued and paid when used. Also, be sure to flag up all jobs as of the last day of each month (even if not a payday), to ensure that month’s labor costs are factored into the costs or WIP labor costs.
Points of Labor Cost Leakage
There are a couple more important points of inaccuracy of labor costs. One is quite preventable, and that is miscalculation of payroll. To prevent human error, we encourage shops to verify payroll accuracy and use an automated system such as a management system, Excel spreadsheet, or calculator with a tape (always have someone else double check your work to
ensure accuracy). Another source of leakage in margin is harder to see. It requires the production manager to be aware of work completed by hourly staff, like a detailer doing pre or post scanning or installing a molding or stripe on a vehicle. They need to go into their system and deflag these lines.
Finally, if a technician flags a line and the insurer later denies payment for those tasks, you need to go into the system and unflag these items if the RO is open or de-flag via an internal RO. The same applies to a labor credit on a salvage part; you need to deduct 20-30% from the labor credit (hours) to account for the body and paint materials used to complete the repair. If you get a 2-hour labor credit, allow the technician to flag 1.6 to 1.8 hours to ensure the shop has been compensated for the materials.
TCL
A final consideration is to understand what the TCL or True Cost of Labor is. Using this calculation, you take the annual wages earned and add up the various company paid benefits offered. If your shop pays great benefits, the employee benefits from it, but they need to consider these things as a part of overall compensation. Review these at least annually to ensure the employees appreciate your true compensation so they don’t get lured away by an offer of a bit higher hourly or flat rate / commission %.
Conclusion
With labor being 60% of our gross profit $ earned, it is important that you hire and train a staff who knows the efficiency you expect for the pay offered, you reward them for producing safe and quality repairs. Further, you adjust your accounting to accurately report your staff’s performance. As a servant-leader, you need to constantly be monitoring technician output, flow and morale to ensure they have the approvals, parts, supplies, tools, OEM resources and training to be as successful as they can. Now it’s on you to challenge yourself to refine your leadership to optimize the labor hours you have available!
BUILD A ROBUST TALENT PIPELINE
You can turn recruiting into your shop’s strength with just 30 minutes every quarter.
By NOAH BROWN
PROCRASTINATION IS ONE of the great selfinflicted stressors that almost everyone has faced at least once in their life.
Whether it’s waiting until the hour before a paper for a college class is due to start writing it or waiting until that ache in your tooth hurts just a little too much before you call the dentist, for some reason or another, it doesn’t
DAVE DUNN
seem worth it to do the simple task until it’s almost too late.
Dave Dunn is the owner of Dave’s Auto Body in Galesburg, Illinois, and is a principal instructor at the Masters School, which specializes in collision repair management education. He says far too often, he’s seen shops take the procrastinator’s approach when it comes to recruiting and hiring talent, which leads them to making poor hiring decisions.
“When you wait until you have an immediate need, you panic,” Dunn says. “You’re reactive, and when you do that, you’re a little more desperate and so you don’t scrutinize the hire at the same level as you should.
A report from the American Psychological Association states that around 20 percent of all Americans are chronic procrastinators, and a main factor for most of those people comes from decision-making anxiety – it’s easier to wait until you’re forced to make a decision than to be proactive.
Dunn says with just a little forethought and regular planning, you can turn the anxiety of finding new talent into a robust talent pipeline.
“It’s simple,” he says. “You’re just going to make a better decision if you think about recruiting and hiring well in advance of when you might actually need somebody.”
A Little Time, a Big Reward
Dunn has run Dave’s Auto Body for nearly 50 years, and though it’s been tweaked slightly through the decades, his approach to recruiting has stayed relatively the same.
“Dave is the master at recruiting and hiring,” says Gerry Enders, owner of Arcadia Body Shop in Arcadia, California. “His approach to solving the personnel puzzle and how everything ties together should be a course everyone takes.”
The approach is simple: Always be recruiting.
Dunn keeps an active database that he calls his active potential employee roster. Anyone who shows interest in working for his shop, whether that be someone who fills out an application or someone who reaches out to Dunn personally to ask about work, is put on the list.
It’s not a list used for active communication – it’s simply there so that when a job does come open at his shop, Dunn can reach out to an engaged pool of curated candidates.
“Simply, we have a waiting line,” Dunn says. “It’s not likely that we would get back to someone very soon, but at the same time, if they’re on our active potential employee roster, we offer them an opportunity to apply for a job as soon as it comes open.”
The potential employee roster will have around 100 names on it at any given time. Every three months, Dunn says he puts some time on his calendar to review the names and keep them up to date.
On that list, there are about 50 or so who Dunn says are “pretty legitimate” candidates. Of those, there are a select few that he has a high interest in. For those folks, he’ll send a text or give them a quick call just to check in and remind the candidate that even though he may not have a job for them just yet, he’s still interested in staying in touch. For the other 50 that are lower on the list, they stay on the list for a while until Dunn hears that they’re not interested or until the list becomes “antiquated,” which is when he’ll delete a few names.
Dunn is always looking for new people to add to the list, so he keeps recruiting cards with him to hand out to anyone who might be interested, or who he might be interested in having work at his shop. Oftentimes, those people do not work in the automotive repair industry.
“The recruiting card basically says, ‘I couldn’t help but notice your winning attitude, and Dave’s Auto Body is always looking for good talent to be part of our active potential employee roster,’” Dunn says. “We hire character and we teach skills, so if I see somebody repeatedly having great behavior and attitude, I’m going to recruit that person.”
To keep track of the names on the list, Dunn uses customer information management software, but he says that a physical list kept in your desk drawer can be just as effective.
Though that may all seem like a lot of work, Dunn says once your list is established, it shouldn’t take much more than 30 minutes every three months to reach out to the few high-interest candidates and remove names that don’t need to be on the list anymore.
“Think about how much work you put in when you need someone and you’re in
desperation mode, building an ad and throwing it out on Indeed or Jobs.com and then you just sit there and wait,” Dunn says. “Thirty minutes every three months is not a lot to invest in your future, and it’s a far better use of your resources.”
Recruit from Within
Enders says one of the main things he’s learned from Dunn is not only do you have to actively recruit potential employees; you also need to actively recruit your own.
“If you look at the people you have that have progressed in your organization, it’s usually because you were willing to teach them not only the ‘how’ to do a task but also the ‘why’ we are doing it this way,” Enders says. “Teaching the bigger picture is going to make your shop a place where people feel secure and like they have a future. Once you start recruiting your own staff on a daily basis, word gets out, which in turn will recruit the right people when the need arises.”
Dunn says good culture and valuing your own employees is the key to a strong recruiting pitch. Making sure that your current employees feel taken care of financially and safety-wise will help them be more able to focus on putting in good work, day in and day out.
Simply put, if you have talented employees who feel valued, you won’t have to fill as many open roles because people won’t leave. And when you treat your employees well, word spreads, and that means more people will want to work for your shop.
“We get to know people well ahead of time during our recruiting and training processes,” Dunn says. “We get a chance to establish the value of our workplace, and they get a chance to see that they’re not just the bottom line of a check. It’s a more relational approach and not such a transactional approach.”
But does Dunn’s simple method really work? The proof is in the people. Dunn says his shop’s employees currently average 12 years of service on the team, with several who have been with him for almost 40 years.
“We’ve been practicing this recruitment philosophy for so many decades now that it’s second nature to us,” Dunn says. “We’re never caught short.”
How Innovation Squeezes Small Auto Body Shops
As vehicle safety and performance improves, the business landscape reshapes to favor well-capitalized players.
In recent years, the auto collision repair industry has been undergoing a technological revolution. From advanced driver-assistance systems to electric vehicle platforms, the cars rolling into body shops today are far more complex than those of just a decade ago. These innovations designed to make driving safer and more efficient also place immense pressure on small, independent collision repair shops. Many of these businesses, long the backbone of local communities, find themselves outpaced by large multi-shop operators and dealership-owned repair centers with the capital to adapt quickly.
The issue boils down to one thing: technology costs money, and a lot of it.
The Rising Cost of Staying Current
As vehicle technology continues to evolve, so, too, must the tools, training, and infrastructure required to repair them correctly. Modern vehicles often require specialized equipment for diagnostics, recalibration, and repairs, especially when dealing with ADAS features like lane departure warnings, blind-spot monitoring, or automatic emergency braking. Even something as seemingly simple as replacing a bumper can become a high-stakes operation if it houses radar sensors or cameras.
For a small collision repair shop, investing in the necessary scanning tools, recalibration systems, and technician training can cost hundreds of thousands of dollars. According to industry estimates, setting up an ADAS calibration bay alone can run upwards of $50,000 to $100,000. Add in OEM certification programs, subscription-based software platforms, and continuous technician education, and the financial burden becomes insurmountable for many mom-and-pop operations.
In contrast, large MSOs — such as Gerber Collision & Glass, Caliber Collision, or Service King — operate on a scale that allows them to absorb these costs more easily. These companies can spread expenses across dozens or even hundreds of locations, often negotiating better deals with equipment manufacturers and software providers. The same goes for dealership service centers, which are often directly tied to manufacturers and have early access to proprietary tools, training, and repair information.
OEM Certifications: A Double-Edged Sword
Another key battleground in the collision repair industry is OEM certification. Automakers increasingly require shops to meet stringent requirements to be certified to repair their vehicles. This means investing in manufacturer-approved equipment, using OEM parts, and ensuring technicians are trained to specific standards. For consumers and insurers, certified shops offer peace of mind. But for small businesses, certification can be a costly and an ongoing challenge.
A shop may need separate certifications for each car brand it wishes to service, each requiring annual audits and fee renewals. For a small operation, even obtaining and maintaining two or three certifications can be financially straining. Meanwhile, MSOs can leverage their larger footprints to achieve multiple certifications more easily, often being designated as preferred partners by insurance companies and automakers alike.
Insurance Relationships and DRP Networks
Another hurdle for small shops is access to direct repair programs. DRPs streamline the claims process and drive consistent work to participating shops. However, insurers increasingly favor large MSOs because of their consistent service, standardized and discounted pricing, and broad geographic coverage.
When small shops are excluded from these networks, they lose a significant source of business. Even longstanding relationships with customers may not be enough to overcome the convenience and cost-effectiveness that insurers and policyholders associate with MSO-affiliated repair centers.
The Talent Gap and Technician Training
Beyond equipment and certification, technician training is another area where small shops struggle to keep pace. The rapid evolution of vehicle technology means that training is no longer a one-time event; it’s an ongoing necessity. MSOs can offer structured training programs, career development opportunities, and sometimes even tuition reimbursement. They can recruit from a national talent pool and provide relocation assistance to bring skilled technicians where they’re needed.
In contrast, small shops often rely on long-term employees and may not have the time or resources to regularly send them to training. This not only limits their ability to work on newer vehicles but also makes them less attractive to younger technicians who are entering the field with high expectations for growth and skill development.
The Future of Small Collision Shops
Despite these challenges, not all hope is lost for small, independent repair shops. Some are finding success by specializing in niche services, such as classic car restoration, luxury vehicle repairs, or even mobile scratch and dent repair. Others are forming local alliances or cooperative networks to pool resources and share costs for expensive equipment and training.
Technology partnerships are also emerging as a lifeline. Some tool manufacturers and software providers now offer subscriptionbased access or financing options to help smaller players stay competitive. Additionally, the rise of customer review platforms and social media marketing gives small shops a way to maintain visibility and build loyalty in their communities.
However, for many, the path forward will require a rethink of their business models — and perhaps a hard look at whether going it alone is still viable.
The collision repair industry is at a crossroads. While innovation is improving vehicle safety and performance, it’s also reshaping the business landscape in ways that favor well-capitalized players. Small auto body shops, once thriving through personal service and neighborhood reputation, are being squeezed by the high cost of technology and increasing complexity of modern repairs.
Without significant adaptation or support, many may face consolidation or closure, leaving fewer options for consumers — and marking the end of an era for independent collision repair.
TIFFANY MENEFEE has more than 20 years experience in the insurance business and now runs a collision repair shop in El Paso, Texas.
EMAIL: tiffanykaymenefee@gmail.com
ARCHIVE: fenderbender.com/menefee
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We Don’t Negotiate Auto Insurance Claims
Why auto body shops should write estimates based on what the vehicle needs, not what someone behind a desk thinks might save a buck.
Some folks like liver and onions, and some don’t. Some folks are good negotiators, and some aren’t. In today’s industry, it can take a full day or more to write an estimate and research and review OEM procedures. It’s a widespread belief and understanding that shops must play middleman between the customer and the insurance company. Let’s be clear: we are not in the business of negotiating claims. We’re in the business of repairing vehicles — properly, transparently, and according to OEM repair procedures.
At our shop, we make it known from the very beginning that we do not engage with insurance companies. We are honest and transparent with every client who walks through our door. That sets the tone for the entire repair experience. As a matter of fact, we spell it out in our repair contract that customers must sign.
I realize that some shops find themselves in positions to negotiate claims and some shops feel inclined to do so because of their state laws or they must do so to scale their businesses. If you are struggling and wonder how other shops deal with this matter, this is our approach.
Why We Don’t Engage with Insurance Companies
Over the years, we’ve seen it all. Some managers would stand their ground so firmly that it created tension and heartache for everyone involved. Others would bend over backward just to keep the job, even if it meant giving away the farm and losing money on the repair. Neither approach works. That’s why we’ve drawn a hard line in the sand.
We are not negotiators. Our focus has always been on safe, proper repairs. “Negotiate” means “to deal or bargain with,” meaning you have something to give away. Our estimates are based on visible and provable damage. We don’t add a fudge factor, so we don’t have anything to give away.
Our estimates are written to perform the job by the book: OEM repair standards, proper documentation, safe procedures, and no shortcuts.
Advocates, Not Negotiators
We are fierce advocates for our clients. They understand their rights, the condition of their vehicle, and the necessary repairs. We help them make informed decisions, but we don’t try to hash out deals with insurance companies.
Negotiating a claim is not our legal role If it were legal for us to negotiate property damage claims on behalf of our customers, by that same logic we’d also be negotiating their personal injury claims. And we all know who gets involved when the real money’s at stake — attorneys.
You’ve never seen a personal injury lawyer racing to take on a property damage claim, because there’s just no money in it. If lawyers trained and licensed to negotiate steer clear, then why on earth would a body shop put themselves in that position?
Repairs Take Time, Skill, and Process
Anyone who’s spent time in this industry knows proper repairs aren’t simple. There are dozens, sometimes hundreds, of tasks to repair a damaged vehicle to OEM standards.
We don’t have time to play insurance adjuster, and it’s not our responsibility. Our role is to restore a vehicle to its pre-loss condition — or better — safely and correctly. That takes resources, focus, and a commitment to doing it right the first time.
When shops allow themselves to be pulled into claim negotiations, they compromise that focus. They start thinking in terms of what can be “covered,” instead of what needs to be done. And that’s a dangerous mindset not just for the shop, but for the customer and their safety.
Empowering the Customer
Instead, we believe in empowering our customers. We share education, transparency, and resources that are commonly available. We explain the repair plan, walk them through their options, and show them exactly what needs to be done and why.
We also point them to helpful consumer advocacy websites such as www.yourvehicleyourchoice.com and www.stopdrp.
These resources might help consumers understand their rights and navigate the often-confusing world of insurance claims and collision repair. They also provide recommendations to help resolve claim issues or file complaints with the appropriate agencies. When they’re informed, they’re better equipped to stand their ground, and we’re here to back them up with the facts, documents, and expertise to support their decisions.
We’re Not Playing Both Sides
Trying to please both the insurer and the customer is a fast track to failure. It leads to compromises, missed procedures, and liability. We work only for the vehicle owner. That means:
• We write for the vehicle’s needs.
• We document everything.
• We perform repairs the right way, every time.
• We stay out of the claims game. It’s not about being difficult. It’s about staying true to what we do best.
Final Thoughts: Stay in Our Lane
There’s a lot of pressure out there for shops to conform to the insurance-driven model, but the ones that succeed — the ones that build trust and deliver real value — are the shops that stay in their lane.
We repair cars well in a timely manner. We do it with transparency, honesty, and a commitment to quality. We don’t negotiate claims and we don’t cut deals behind closed doors. What we do is advocate, inform, and repair.
If you’re tired of the back-and-forth with insurers, maybe it’s time to draw your own line in the sand. When you focus on repairs instead of negotiations, everybody wins — especially the customer.
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