IN AN UNSTABLE ECONOMY, WHERE DOES YOUR COLLISION REPAIR BUSINESS STAND?
Of late a considerable amount of time is being taken up with body shop enquiries about insurers’ new service level agreements (SLAs). They are updating criteria, some beyond the established terms, with new interventions of their freshly charged service level agreements and even undefined removal from procurement steering.
We are noticing the drive to reduce the repair cost spend on their estimate. This is nowhere near a full quantum of required repair scope and leaves the Motor Body Repairer (MBR) to either not do the additional work or take shortcuts. The industry has become used to fairness of best practice, but administrative burdens are now reaching unmanageable proportions. It must be a perception that we as repairers must be micro-managed. Cost saving can, to a point, be better managed with efficient first-time right work accomplished and complete estimates in reasonable time. This lowers turnaround time from first notification of loss to restored return and minimises car rental days but is generally overlooked.
It is very difficult to get a “one size fits all” approach to run any body shop where every single repair job is different. The complexity of new vehicle design has left vehicle damage assessors far behind in the real world of repairability. A huge boost of investment is needed to educate and train frontline quotation insurance assessors to keep pace with it all. Let us fast track VDQ certification as a means of best collaboration and relationship confidence.
Once a shop signs with an insurer, it effectively hands over a large degree of control of its business. The promise is always equitable margins and payment of all repair processes that need inclusion, but mark-ups on parts are prescribed, or the offer of parts supply – a detriment to survival of any MBR business – margins are squeezed. When volumes of work disappear, shops are left exposed.
Every vehicle is different, every repair is unique, and complexity has grown enormously with the example of ADAS systems, advanced cameras, and changing vehicle construction. Yet, despite this, insurers continue to treat labour times as the main battleground, rather than recognising the skill, equipment, and training required to repair modern cars properly.
At the same time, “cash in-lieu” settlements and undervalued write-offs have become more common. Many customers are paid out at a lesser value below the real market/retail value of their vehicles. This practice not only disadvantages policyholders, but also feeds into the world of Code 2 rebuilds and used car headaches – raising questions around anti-competitive behaviour and consumer protection compliance.
For body shops, the path forward lies in taking back control. We need to focus on customer fairness, investing in staff training, and pushing for recognition of the real complexities of modern vehicle repair. Insurers need to shift their mindset from cost-cutting to collaboration – because at the end of the day, fair repair practises are at the heart of every insurance contract and that principle needs to be upheld for customers and repairers alike.
Save the date
Plans have now been formalised for the CRA Conference on Thursday, 30 October at Automechanika Johannesburg show at Gallagher Estate. The conference will run from 09h30 until 15h00 and will include lunch. This is an open conference and will provide an opportunity to network, stay updated with an excellent speaker line-up as well as spaces where new products are being introduced to help enhance your repair business.
Staying ahead of the game with the ever-changing landscape of repair is always key, and our keynote speaker, Andrew Marsh, will be focusing on what is on the horizon and how it can benefit the repairer. He has great insight into how the trade can align with the fast moving innovative changes that we face. ADAS rectification, the massive Chinese vehicle explosion and other dramatic influences will be looked at as well.
Andrew has been a speaker of choice across the world from the USA, Germany, Australia and of course, Africa.
The line-up will cover many facets of repair. ADAS will be put under the spotlight as well as feedback from Hyundai on their repairer approval programme (HARP) showing their successes and how they have learnt from feedback and collaboration with the CRA and Automotive Refinisher.
The subject of training and skills will see a panel debate about what we are doing right and where we can improve in the sector of upskilling for the future. It will be a place to learn and grow what is working well.
A panel of insurers will answer questions on the industry and there will also be a slot for Audatex, Lightstone and Automatrix to showcase their views on customers service and the way they are moving forward.
On a commercial note, a number of pop-up trade stands will preview their recent product innovations and services. These will include Moxical, Audatex, BASF, Sagola, Lightstone, Edge, Dr Smash, PPG, VDQ and Paintwizz.
The chance to meet with like-minded fellow business people, learn from one another and catch up is an opportunity not to be missed.
To register, visit: https://ads.crasouthafrica.co.za/ and book and pay for your seat. It is at a cost of R450 which includes lunch, snacks as well as coffee and tea.
PLEASE NOTE: You need to register with the link for the CRA Conference, as well as the Automechanika Johannesburg link so that they also have you on register for entry to the show. Registration is free for the Automechanika Johannesburg show at: https://app.messereg.com/events/visitor/automechanika-2025
Story by: Steve Kessel, CRA
