Segment repair, a key component to growth, knowledge consolidators and multi shop operators have learned that most independent repairers are unaware of . Why is it consolidators such as Gerber, A.B.R.A, Caliber and Sterling are buying up independents and M.S.O.‘s left and right at break neck records? It certainly is not the downed economy we are all facing. So why then do they seem to be prospering and growing.
Two words, “segment repair“. Segment repair is a powerful tool and weapon in the arsenal of big operation that most independents can’t define nor understand. So first lets define Segment repair in basic terms. It is the break down of vehicle repair tasks and procedures into categories hence the word segment.
So why are the big boys in the consolidator world turning to this style of operation? I am not an expert in the area of buy-outs and acquisitions but you don’t have to be a genius to understand their reasoning. Most consolidators do a lot of scouting, searching for semi-profitable independent shops and multi shop operations in certain targeted market areas they can flip and convert to their style of operations quickly and profitably.
You see its quite simple. They have deep pockets to purchase. They have insurance relations to create workload. They have vendor partners to support them. In fact it is a joint effort on the part of all these entities who determine the next market area.
The one factor that slowed this process down and in some instances prevented market infiltration was the workforce. Yes the talent pool, or lack there of for finding qualified production personnel to staff a facility. You see you can have all the resources to move forward if that includes the human resource as well.
Qualified techs has been an industry issue for years. Finding a good one who could do it all was becoming more difficult like the proverbial needle in the haystack and know comes along remedy to that situation. Segment repair.
By breaking into categories the repair processes and tasks of disassembly, reassembly, surface repair, coach work(welded panel replacement) and frame repair, you begin to eliminate the need for a fully rounded one tech does all and transition over to individual positioning of techs who specialize in limited roles of repair.
In doing this you’re highly skilled techs become more effective and efficient in the singularity of complex task such as frame repair , coach work and surface repair.
Let me mention briefly what this gives your shop the abilities to accomplish and then I will let your imagination run wild.
Introduction of tiered wages, lower skilled techs lower pay roll, higher net profits. Workforce development more conducive to train employees quickly to fill lesser skilled positions . Easier to implement and sustain standard operating procedures and quality control check points. Less dependency on the older declining generation of A techs. Tighter control of material usage. Pinpoint control for vehicle repair scheduling and delivery. More throughput and higher turn rate using systematic methods. The break down of segmented repair accelerates training productivity even for the more skilled and complex tasks enabling you to customize the size of your workforce. Segmenting also allows flexibility for speed lanes staffed with lower skilled techs that actually become more specialized and efficient than journeyman techs. One other feature of segmenting the repair process is that it allows you to build teams equipped to process hard hits like never before. Oh there are more benefits I can share with you but that’s enough for now.
So come one independents you have now been enlightened to some facts and a few benefits of segment repair. If for no other reason update your processes and become more appealing to a consolidator buy-out. After all your in business for two reasons. To make money operating and to make money when you decide to sell!
Oh yes there is one other fact about transitioning your facility over to a segmented repair system you should know. Hire an implementation specialist who has the experience, wisdom and wherewithal to assist your efforts and get it done. It will save you time, money, and aggravation. Visit
www.autobodyproductionservices.com for more information