Build on others' expertise, experience to EXPAND, RELOCATE your shop

From A to Z — ambience to zoning — there are a multitude of factors to contemplate when deciding if it's better to renovate or relocate a collision repair business when major structural enhancements are in order.

Whether landlocked and tight on space or desiring a financially beneficial move to greener pastures in the suburbs, zoning and other regulatory issues typically loom largest in the initial stages of the process. New construction or converting another existing building to body shop use, and even adding on to your current site, can be stymied by assorted governmental restrictions before you even start to think about the financing and design elements.

It takes a considerable amount of planning and careful thought before embarking on a project of this scope.

"It's a puzzle and you have to make it all work," says Rick Farnan, facility planning manager for Akzo Nobel. "It's a balancing act," he adds, between the needs and desires of a shop's owner vs. the amount of money available in the budget.

A thorough review of your existing location is an insightful initial step recommended by Scott Biggs of the Assured Performance Network, a nationwide body shop cooperative based in California. "The first thing you should do is look at the front of your building as if you were a consumer looking at it for the first time," he says.

Does it look "precise" and inviting to someone who is preparing to trust you to repair their most expensive investment other than their home? Is the signage appealing and professional? Does it fit in with the rest of the businesses in the community? Is the place shabby looking? A fresh paint job — remember that people are paying you to paint their cars — and an added awning may be a better solution than building anew or pursuing a complex renovation.

"The number one thing that you should always do is make sure it's painted because that's what people expect you to do," says Biggs.

"For the most part, shops don't usually have that many options," notes Biggs, pointing to the various regulatory hurdles. "Most don't have the luxury of moving their business down the street, and if you build from scratch it's going to be quite expensive."

He said researching the local governmental requirements — such as setbacks and land partitioning — will likely dictate the available options if you wish to stay in the same neighborhood.

"If you're considering making an investment in a new facility it's worth the fee to work with a consultant to see what you already have," concurs consultant John Steadman, owner of JOVI Enterprises, Inc. "We don't have a cookie-cutter program for someone looking to expand. We take a look at the situation to see if they're maximizing the space within the existing walls: Is your current facility going to match the cycle times you're trying to achieve?"

Steadman consistently comes across body shops that are suitably functional at a smaller size, yet become inefficient and unprofitable after an aggressive expansion because the owner failed to adequately plan the endeavor. If you need to cover a marketplace in a growing suburb, he suggests implementing a more manageable satellite location.

When a larger initiative is in the offing, says Steadman, consider building in five- or 10-year stages instead of doing it all at once.

Finding a look and feel

If an ambitious expansion project is indeed the path you choose, Biggs urges you to take a look at what your industry colleagues have accomplished. "Find a shop owner who's done it right; see what other shop owners have learned the hard way."

When considering what you want your shop to become, "find a look and feel that appeals to you." Appealing structural concepts can be discovered in magazines such as ABRN or viewed by personal or online visits. Talk to your paint jobber. Make some telephone calls. "Contact shop owners of facilities you like," Biggs suggests. Attend association meetings and other industry functions. Ask questions. "That's the most valuable free information you can get. Narrow all that down before you contact an architect," he says.

According to Larry Edwards, president of Edwards & Associates Consulting, Inc., which provides turnkey construction coordinating services, 15 percent of his clients are looking to add-on to their existing facilities while 85 percent want to retrofit another building or build a new one. Retrofitting is considerably more popular as a more affordable option.

By the time Edwards is brought on board, "usually they have the building locked in and they have an idea of what they want, but they've missed a few steps." Zoning problems often crop up, as does the availability of utilities necessary to operate a body shop.

Architect Ann Salazar, who supplies inside-and-out construction planning through the BASF VisionPLUS program, sees similar scenarios. "We can help you find a local survey company to find out what's there," she says. A number of issues can arise based on a region's regulations and climactic conditions. Items to be taken into account include earthquake risk assessments, hurricanes, high winds, rain runoff, parking and allowing space for piling the residue of heavy snowfalls.

Construction materials, curb appeal and placement of the structure's components are all addressed. "You don't want to open your door and have a lot of leaves blowing in." Salazar says.

Engineers are brought into the process to contemplate factors such as structural integrity and content, electrical, plumbing/sprinkler systems, civil elements as with grading and drainage, heating, ventilation and air conditioning, and landscaping.

"The role of the architect is to be the project coordinator," says Salazar, whose Avant Garde Interiors firm oversees the jobs under contract with BASF. The fee structure starts at $40 per square foot.

Vetting the edifice

Paint manufacturers throughout the industry have related programs aimed at assisting body shop owners wishing to improve their facilities and sometimes they will absorb the cost. It's best to bring the suppliers in sooner rather than later.

"People come to me as a first step before they go to a local architect," Salazar says. "Often an architect in your community doesn't have knowledge of what a collision shop's special design and engineering needs entail.

"Usually I hear about these projects from the sales rep, and sometimes by then the ground has already been broken," she says. "I do hundreds and hundreds of shops all over North America, so I'm saving them from making costly mistakes."

In 2006, BASF worked on 41 remodeling/addition projects and 20 new construction jobs. The 2005 ratio was similar.

"With new construction you can do what you want. With existing construction you have to work with what's there," says Salazar. "There could be posts in the way; with a new building you can put the posts where you want them, but the process takes longer" and can be more costly.

Converting an existing structure with historic value or architectural uniqueness may be a daunting task that turns out to be unattainable — you need to thoroughly vet the edifice before work progresses. "A lot of times we look at older buildings, but a lot of times it's not worth the liability and investment."

The body shop owner's vision driving a construction venture is occasionally focused more on the big picture rather than the finer details required to obtain financing. "Sometimes the people don't have a budget and haven't gone to the bank yet," Salazar notes.

"We help them write a business plan so they can take it to the bank," says Edwards, who charges 2 percent to 3 percent of a project's total cost for his start-to-finish, inside-and-out services.

It's not uncommon for a collision shop owner to seemingly overlook the clients to be served by the business, he says. The pre-conceived layouts frequently focus more on interior work flow than ingress and egress issues and ease-of-accessibility.

"Most people design these things to fix cars," explains Edwards, and then they put in a little tiny area for the customers, but if you don't have customers you won't have cars to fix."

Consumers will be reluctant to patronize your shop if they face difficulties maneuvering in and out of the premises or if the waiting area is less than adequate when compared to the competition.

"We try to design them to be customer-friendly," says Edwards.

"You're creating a better image," echoes Farnan at Akzo Nobel. "You want to create an image with good curb appeal," he adds, citing as an example the placement of customer parking spots in relation to where a tow truck drops off a vehicle waiting for repair. "You want to put that in a secluded area so that it's not parked in front of the building in view of the public," Farnan says. "A customer certainly doesn't want to drive up next to a car that's cut in half."

A design priority for both retrofits and new construction is the "dual usage" ability of the structure, according to Edwards. When he prepares a plan it is predicated on the idea that the structure is able to be utilized for another purpose should the owner decide to sell or otherwise alter the business. "I don't want to build a facility that can't be converted to another use." The dual use aspect helps preserve the investment.

"It's something you can have for retirement and rent out the building," advises Bill Krause, a DuPont business consultant, "so make sure the building can facilitate another business."

Utilities can become an issue when shifting operations to a new location. Electrical lines and natural gas service may be out of position or lacking. "The ovens require a tremendous amount of energy," says Krause. "It's something they never anticipated and it costs them money." He knows of situations where the expense of moving/installing the mains has exceeded $25,000.

A property could have soil contamination problems that a core sample can detect, or prevailing winds may waft unpleasant odors toward the neighbors due to the positioning of the structure. "People can complain about the smells and shut you down."

How the sun strikes a building is another factor to take into account, according to Krause. Adding air conditioning can pay for itself over the long run when used as a selling point to recruit top technicians and heighten worker productivity; ditto for adequate heat in the winter.

Shop owners have run into difficulty when trash removal hasn't been addressed. Krause recounts how facilities have had to place large, ugly refuse containers out front because garbage truck access is overlooked.

It's possible also that a proposed location is unacceptable regarding the demographics desired by your direct repair program affiliations. "That's been a big 'ah-ha' for a lot of people; maybe you should meet with your insurance partners to see what their market needs are," Krause says.

"The business consultants (you engage for their collision center design expertise) will come in and ask these questions." Such queries can avoid expensive errors during the contruction or renovation processes, while helping to ensure prolonged success. Proper planning up-front will make such changes improve your shop's efficiency and bottom line profits.