A Look At Collision Repair
In The North-Central RegionA compilation of census information, business list statistics and interviews with shop owners allows examination of the repair industry in an area that has not been one of the regular stops on the NACE circuit -- the north-central region of the United States. As the Northern Autobody Congress and Exposition prepares to visit Chicago, here’s a look at the industry from a statistical standpoint and from some shop owners’ perspectives.
The area is home to a quarter of all U.S. collision repair facilities, based on census reports of nine states in the area--Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Ohio and Wisconsin. Although every region of the United States offers business advantages and disadvantages, shop owners discussed some of the general situations dealt with each year in the north-central region.
Climate
With a record-breaking winter finally behind us, it’s easy to list the "biggest" factor that makes this area unique for the collision repair professional: the climate.Gale Westerlund, past chairman of ASA and owner of Gale’s Autobody, Inc., in Minneapolis, Minn., says that of the unique circumstances facing collision repair professionals in the area, the weather is the most difficult.
"This year, there’s been even more work than normal because of the extreme cold," said Westerlund. "Sometimes there’s more business than you can handle."
Sleet and snow can increase the work load. Jim Keller, an ASA member and owner of Motorcar Body and Paint in Milwaukee, Wis., said that according to research by Keller and Associates, an auto collision management consulting firm, snow and ice contributed to more than 30 percent of 1994 crashes in Wisconsin.
"According to 1994 Department of Transportation (DOT) statistics, of 148,320 total crashes, 46,794 crashes were caused by snow and ice when a Possible Contributing Circumstance, or PCC, was listed on the police report," said Keller. "January was the month with the most reported accidents in Wisconsin, 16,953. The 1994 monthly average was 12,361."
When accidents increase due to icy road conditions, the type of crashes may vary according to area populations, said Bob Anderson, AAM, owner of Anderson’s Automotive Service in Sheffield Village, Ohio, and secretary/treasurer of the ASA board.
"In the city you may see increases in the fender benders. In rural areas you may see more heavy-duty collisions. The roads are more open and so speeds may be higher, although there may be fewer accidents due to fewer automobiles," said Anderson. "It’s hard to speak in general terms, you can really only comment on your own area."
An example of how varied the conditions can be from one area to the next is shown in another statistic from the Keller study. The study shows that deer crashes accounted for 16 percent of all Wisconsin crashes in 1994. Deer population has steadily climbed over the last 15 years to a record 1,500,000 in 1994, according to the study. Without these crashes, there would have been 16 percent fewer accidents contributing to repairs in the state in 1994.
Business Volume
Several shop owners stressed that while climate conditions in the area definitely have strong influences on their businesses, the weather does not equate to extreme highs and lows in business volume. More than impacting volume, the weather plays a large role in the type of work available."It’s not as cyclical as it used to be," said Tom Liss, owner of Liss CARSTAR Body and Paint in Crown Point, Ind. "The work is seasonal, which brings different types of work." One regional difference is dealing with the salt and chemical residue that needs to be removed from vehicles after the winter season. Winter brings increases in collision work; warmer seasons bring in spring cleaning and more paint work unrelated to accidents, said Liss.
"Anymore, it’s as busy or busier during warmer weather, from about July to the end of the year. Collisions are there all year due to people taking vacations, moving and more cars on the road," said Liss.
Each season does have its different effects, said Anderson. In warm weather, areas with black-top roads can see problems when the oil comes to the surface, causing slick road conditions. Winter months are always the heaviest, but its more of a constant for many shops, said Anderson who also maintains a constant level of business.
Dean Fisher, owner of Auto Creations in Yorkville, Ill., said a graph of the "typical" business volume in the area, as it relates to climate year round, would probably be pretty strong in January and throughout the winter. There may be a drop in spring (end of April, early May), but there’s an increase in summer -- everyone is out driving. Then, there may be a drop in September, but that will increase as you approach the winter months leading into January again.
Fisher says climate changes require shop owners to put more thought in their product, how they produce it and how they deliver it. "For example, you can’t shock the product by painting it indoors and then sticking it outside in zero degree weather."
Another ASA member who said he stays as busy or busier in the summer is Ron Nagy, owner of Nagy’s Body and Frame Shop in Doylestown, Ohio. "No matter what the weather, the drivers are still human. Wet leaves can be as slippery as ice and snow."
Nagy theorizes that when road conditions are bad (snow and ice) you have "white knuckle drivers." But in the summer when road conditions may improve, drivers may not be as alert, they may be too relaxed, and that can lead to accidents, said Nagy.
Education
Across the nation, education is a concern to industry professionals. And concern by shop owners in the north-central region is no different. Several shop owners expressed a strong concern with a shortage of skilled entry-level technicians; declining enrollments in automotive service programs; and the importance of getting involved with local educational programs.ASA member Paul Tatman, president of Tatman Autobody, Inc. in Urbana, Ill., is working with a local community college on a two-year associate degree program. "About 70 percent of the program would be held at our facilities and about 30 percent held at Parkland Junior College," said Tatman. Of the 70 percent, classroom work would be held at Tatman’s newest location, a two-story facility with classrooms, and students would receive hands-on training at any one of Tatman’s five facilities.
Tatman shares the belief with other shop owners in the region that a major factor contributing to a shortage of skilled entry-level technicians is poor instructors and said some school systems are about 10 to 15 years behind times. Another big concern is the low enrollment in collision repair programs.
"Junior colleges are losing populations and are looking for new avenues of recruitment. The colleges are going to the community to set up programs. They’re being very aggressive. Shop owners who want to make a difference could get involved with local colleges. It would be good for both the industry and the college," said Tatman.
Mike Guldan, an ASA member in the rural area of New Ulm, Minn., and owner of Broadway Body Shop of New Ulm, said, "The shortage of entry-level techs is a big-time problem. I’ve hired some capable people, but it seems that younger people tend to go to larger cities to find work, some with the belief that they will make more money in a metropolitan area."
City Vs. Rural Communities
Westerlund believes that rural areas in the north-central region, as in any rural area in the nation, may be harder hit with a technician shortage. "Often times technicians in rural areas go to bigger cities to find work, anticipating a more steady workload and higher pay."There are many positive aspects to living and working in smaller communities according to Nagy, who said he likes the variety of weather conditions and clientele. "I see bib overalls and $500 suits walk through the door each day," said Nagy. "And, most people who bring their cars to us do really want the work done. We probably have a closing ratio of 95 percent or 96 percent.
Stability
Regardless of business location, many shop owners said a benefit for many collision repair facilities in the area is its economic stability from the number of industries in the area -- iron, steel fabrication, the frozen food industry, corn and soy bean farming, the health care industry and academic communities. Liss said these industries provide a strong customer base through a number of commuters, an increase in two-income families, and a demand to "get the car quicker." He calls it the McDonald’s Syndrome: "I want it now or yesterday."In addition to economic stability, many shop owners said a benefit of the region was that it was "just a great place to live." Nagy, who’s shop was built by his father on land that was originally his grandfather’s farm, said he wouldn’t want to live anywhere else. "I absolutely love it," he said. "If you don’t like the weather around here, wait five minutes."
Northern Autobody Congress & Exposition
The first-ever Northern Autobody Congress & Exposition is set to begin May 30 at Chicago’s Navy Pier.The three-day regional event will bring educational opportunities, speakers and seminars within driving distance of thousands of collision repair professionals in the north-central United States.
Two ASA members among the first to sign up for the event had this to say about the show:
"I want to stay on the cutting edge of what’s new in the market," said Bill Luckenbill, owner of Bill’s Auto Body, Inc. in Superior, Wis. Luckenbill, who will attend the show with his wife, also sees the opportunity as a mini-vacation. "It’s been a hard winter, and this is a chance to get away for a while," he said.
Chuck Mueller, owner and CEO, Cal’s Collision Center, Inc., Chicago, Ill., said he likes the convenience of the show. "It’s 20 minutes away, it’s a cool location and there’s lots to do around there," he said. Mueller plans to take his son who is entering the industry. "You’ve got I-CAR, you’ve got seminars ... Northern Autobody is a good chance for him to get his feet wet," said Mueller.
For more information about the show or to register, call (817) 283-8953.
Industry Seminars
Good Employees: Making The Match
Review issues that help attract and keep a top quality staff, such as incentives and compensation plans, flat-rate vs. hourly and how working conditions affect employees. Thursday and Friday.Bottleneck Vs. Bottom Line: Perfecting Productivity
Learn to increase profitability by understanding its relationship to productivity. From production scheduling to shop layout, learn how to boost your bottom line. Thursday and Saturday.Customer Service: You Make The Difference
Learn specific techniques to keep customers happy and loyal. This motivational seminar shares how exceptional customer service can help you get ahead. Thursday and Saturday.Marketing Mania ... The Do’s And Don’ts
Learn about advertising, public relations, personal selling and image enhancement. Leave this seminar with the know-how to set your own detailed marketing plan. Thursday and Friday.Post-Repair Electronic Troubleshooting
Learn solid vehicle electronic systems training to help with the troubleshooting process, such as how connectors work and what to look for when indicator lights come on. Friday and Saturday.Learning To Profit Through Strategic Alliances
In a panel discussion format, learn ways to better your relationships with customers, suppliers, manufacturers, distributors and insurance companies. Friday and Saturday.Exploring Effective Shop Management Skills
Learn shop management skills, including how to provide a properly equipped shop, meeting regulations, mastering technical expertise and organizing production systems. Friday and Saturday.Success Strategies For Dealer Body Shops
Keep customers happy and contribute to your dealership’s return on investment. Through good quality control, marketing and profitability you can surpass the status quo. Saturday.Structural Sectioning ... Innovations Or Complications
This seminar will feature up-to-date unibody and conventional frame sectioning information, including identifying mild, high-strength, intermediate, high-strength low alloy and ultra-high-strength steels. Saturday.
Optional Education Sessions - May 30
ASAMI courses
Effective Ways to Immediately Improve Your Bottom Line
8:45 a.m. to 10:15 a.m. or 1 p.m. to 2:30 p.m.
Consultant Robert Langdon will show how to identify controllable expenses, maximize marginal revenue from every sale and focus on the best ways to improve the bottom line. $35 per person.Telephone And Front Office Techniques
10:30 a.m. to Noon or 2:45 p.m. to 4:15 p.m.
On the phone and in the shop, employees make lasting first impressions that determine the customer’s confidence level. Communications expert Cherie Tucker will teach tips on greeting customers, taking messages, handling irate callers and screening calls discreetly. $35 per person.ASAMI courses earn participants three credits toward the institute’s Accredited Automotive Manager (AAM) designation.
I-CAR Courses
Executive Seminar: How Top Management Stays on Top
8:30 a.m. to 5:30 p.m.
This seminar is for executives concerned about rising average loss adjustment expenses, customer satisfaction, changing technology and other challenges. To better understanding these issues, attend this seminar. $95 per person.Glass Replacement
8:30 a.m. to 5:30 p.m.
Learn the latest on glass replacement, from adhesive curing times and liability exposure to installation and removal methods. Also learn some of the key issues related to stationary and modular glass replacement. $90 per person.Workplace Hazardous Materials
1 p.m. to 5 p.m.
This new course covers hazardous material labeling requirements, material safety data sheet use and precautionary measures, and provides the initial training to meet the needs of suppliers, employers and employees. $45 per person.PBEA Course
Jobber Seminar: Selling Techniques for Jobber Professionals
1 p.m. to 3 p.m.
Learn new sales tips and examples of dealing with all types of customers. Dick Turner of EMM North America, Inc. will show how to overcome objections, make presentations with impact, manage time efficiently and close the sale. $30 per person.ASA Main Page || AutoInc. Main Page
Directions || Stat Corner || News Briefs || Taking The Hill
More Info About AutoInc. || Tech To Tech || News Briefs Extra
A Look at Collision Repair In The North-Central Region || Tech Tips
Chairman's Message || Issues Along The Way || The Top 45 Tips For Success
Guest Editorial || The Changing Parts Market -- And How It Affects Shop Owners
Collision Estimating Times: Are They Shrinking? || Have You Heard About OBD III?
AutoInc. Magazine ®, Vol. XLIV No. 5, May 1996