Ask the Expert: Should Collision Repairers Pursue OE Certification?

Should Collision Repairers Pursue OE Certification?

We believe OEM certification will become the standard in just a few short years, and only those who are making the investment and effort today will be prepared to accept the liabilities that are now beginning to be recognized and will surely grow in the future.

Q: Do you recommend that collision repairers attain OEM certifications?

A: Yes, we encourage repairers to acquire training and certifications where and when they can. This includes what’s offered by non-OEMs as well, including I-CAR, ASE, manufacturers, suppliers and vendors. We encourage repairers to attain the necessary training, equipment and materials to remain compliant, regardless if they’re certified or not.

We believe OEM certification will become the standard in just a few short years, and only those who are making the investment and effort today will be prepared to accept the liabilities that are now beginning to be recognized and will surely grow in the future. It also provides you and others with a sound and effective marketing strategy within your marketplace, which will be necessary to compete with the ever-growing consolidators and MSOs that are attaining OEM certifications.

We’ve helped our clients achieve certifications and determine the order in which to attain them from an investment standpoint. We’ve also helped these repairers gain more compensation and profitability from those necessary investments and the associated liabilities incurred.

Change

Be assured, the only thing that will remain constant in the collision repair industry is change!

If you recall back in the 60s when Detroit’s Big Three started producing unitized vehicle construction, auto body repairers had to push aside their come-a-longs and pull-dozers and take up valuable stall space by adding expensive frame racks that required three-dimensional measuring systems and printed data books, MIG welders, etc.

The resistance to change back then was rampant throughout the industry. Just when you made one large investment, another was needed, and it seemed never-ending. At that time, many repairers decided to just get out of the business. Some (primarily dealers) had little choice than to make the necessary investments, while others saw it as an opportunity. Still others, out of necessity, reluctantly became somewhat compliant over time.

Until recently, repairers were not often held accountable and were under no pressure to make the necessary ongoing investments to keep up with technology (e.g. spot welders, etc.). That has now changed dramatically, and one can be sure that additional lawsuits similar to the recent one in Texas will pop up in the not-too-distant future. In fact, it may become a cottage industry for aggressive plaintiff attorneys seeking a new and readily available income stream for their firms.

The collision industry is changing rapidly, and collision repairers must either get up to speed in training and equipment with OEMs’ current technologies and proper repair methodologies or get left behind. Certifications will be needed to compete and, and in many instances, purchase replacement parts from the OEMs.

Investment

There’s no doubt that adhering to and complying with OEM mandates and being able to perform repairs properly and avoid unnecessary liabilities will require significant ongoing investments in training, equipment and facilities to meet the repair/replacement needs of today’s aluminum, hybrid metals, polymers, bonding-welding materials and blind rivets, and the repair and replacement of composite materials such as carbon fiber, SMC and others that are currently being developed to make vehicles lighter and safer.

Today’s auto body industry is not your father’s. It’s a highly technical and advanced profession that requires specialized training, skill, equipment and materials, all of which places the shop and technician in a position of potential liability. The astute repairer will recognize this and re-evaluate their costs and potential liabilities and revise their estimating and billing practices to attain a reasonable return on their investment while fully understanding and taking into consideration their associated risks.

The future is bright for those who embrace the changes and make the necessary investments to be “the only one” in their market. The opportunities for consolidators and MSOs will no doubt grow due to those who choose to retire or wish to leave the industry rather than make the needed changes and investments.

You May Also Like

Exit Strategies: Personal Vision & Financial Planning

The most critical first step in an exit or transition plan is to develop a financial plan and personal vision of what your life will look like post-business.

Jerry was a 63-year-old auto body shop owner who contacted me regarding putting together an exit strategy. Like most shop owners, he had become tired of the day-to-day grind of dealing with the back-and-forth fights with the insurance carriers, yet he still loved the idea of being a part of a business he built from the ground up. Ideally, he would have liked his production manager, Evan, to become his heir apparent, yet he had no idea if Evan was interested in owning the shop or if he was even capable of doing so. His shop was a prime candidate for a consolidator, and he had received an offer from one, yet he cared about his employees and wanted to make sure they were taken care of. Also, he was unsure what he would do with himself if he did not have a place to go. He did not know where to turn.

Collision Repairers: Will You Take the Oath?

Today’s collision repairers are challenged with a new set of concerns, one being the need to follow OEM repair procedures.

Three Generations Keep Trains Running on Time at CARSTAR Jacobus

CARSTAR Jacobus Founder Jerry Jacobus and son Dave share a passion for collision repair and also model railroading.

Auto Body Repair: The Right Way, the Wrong Way and Another Way

In a perfect world, every repairer would make the right decisions in every repair, but we don’t live in a perfect world.

The Digital Blitz

We talk so much about how much collision repair is changing, but so is the world of media!

Other Posts

Auto Body Shops: Building a Foundation for the New Year

For the new year, it’s important to conduct a thorough audit of your finances to look for areas of opportunity and things to change.

Auto Body Consolidation Update: There’s a New Buyer in Town

The good news for shops that want to sell but do not fit a consolidator’s
profile is that there is a fresh pool of new buyers.

Is Your Auto Body Shop a Hobby … or a Business?

So you want to provide safe and properly repair vehicles to your customers … even at a financial loss?

Toyota Announces New Certified Collision Center

Toyota Motor North America, Inc. has announced Walker Toyota in Miamisburg, Ohio, as its newest Toyota Certified Collision Center.