Training Key for Collision Shops
Management and technician training, although listed as benefits, are essential elements in the survival and success of any business. Technician training is a two-way benefit offered by 81 percent of collision shops. Nearly nine out of 10 businesses allow technicians to attend training during the workday. Of those, 56 percent compensate technicians who attend training during the workday.
Results show 79 percent of collision businesses fund the education of their technical staff. Seventeen percent are sharing the cost of training with their employees. Two percent require sole funding from their employees. The remaining 3 percent does not participate in training.
It is estimated that 17 percent (42 million) of the 249 million registered vehicles are involved in vehicle collisions annually. Of that amount, 15 percent (6 million) are totaled, and 28 percent (11.8 million) will disregard repair. That leaves approximately 24.1 million vehicles up for repairs, according to Collision Repair Industry Insight's Annual State of the Industry Report.
To perform collision repairs, training is critical to the industry. Apprentice technicians received an average of 17 hours of training at an average cost of $578 annually. This is slightly misleading in that some shops consider all hours spent as an apprentice as hours of training. Entry-level technicians (painter and frame) received 15 hours of training in the past 12 months, with a price tag of $595. Experienced technicians attended 25 hours of training ($813), and managers received 17 hours of training ($833).
Having I-CAR training is common with 99 percent of collision shops polled. Most shops have approximately five I-CAR-trained technicians.
With 2007 coming to a close, the Automotive Service Association is estimating minimal growth in the collision industry, from 36,793 shops in 2006 to an estimated 36,805 in 2007. ASA is also estimating a slight growth in employees, from 227,036 in 2006 to 227,178. These collision specialists are responsible for fixing the estimated 42 million vehicles involved in collisions in 2007 that result in repairs.
The number of service bays and the size of the average facility are similar to 2006 figures of 17 bays and approximately 11,910 total square feet. Square footage averages include 1,341 of office space, 10,441 of shop space, and the remaining space is used for parts and storage.
Twenty-two percent of shops have been in business 21 to 25 years. Twenty-five percent have operated 26 to 30 years; 17 percent have operated for 31 to 40 years and 13 have operated their business for 40 or more years.
There are various levels of frame or body technicians employed at collision shops. For example, the apprentice technician has one year or less of experience, the entry-level technician has two to four years of experience and the most common employee is the experienced technician with five or more years of experience. Ninety-eight percent of ASA collision shops employ three experienced technicians, each earning approximately $53,000 annually.
Flat rate continues to grow as the most common form of payment for technicians. Fifty percent of technicians are compensated on a flat rate system. Twenty-two percent receive an hourly wage. Sixteen percent receive hourly wages plus commission, shared equally by those receiving a percentage of the labor rate.
Examining these industry stats, we see that approximately 61 percent of collision shops saw technicians come and go. When asked to select the employee type for which their business would have the most need in the upcoming year, 36 percent said experienced technicians. This is followed by entry-level painters (13 percent), entry-level technicians (11 percent), estimators and office/claims personnel (9 percent) and finally, experienced painters and apprentice technicians (8 percent). Other positions registered only a slight percentage. Note: The survey did allow "None" as a response option, which was chosen by 42 percent of respondents.
In 2007, 57 percent of collision shops experienced a 12 percent increase in sales. Improved customer service was reported by 58 percent of members as the top attribute in a sales increase, in comparison to 2006.
As in previous surveys, the 2007 survey asked respondents what they expect their annual sales to be in 2008. Seventy-four percent of collision businesses project an increase in annual sales for 2008, 21 percent anticipate no change and 6 percent expect a sales decline.
ASA collision members' purchase trends currently lean toward OEM (68 percent). Twenty-eight percent of aftermarket parts purchased are certified. Rejection rates vary in the aftermarket field with OEM ranking best or least in percent of returns, according to respondents.
Gender classification for the customer base of independent collision repair facilities today is shared at 51 percent female and 49 percent male.
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