Create alternate revenue streams that extend beyond automotive work
Are you looking for new revenue streams to expand your business and increase profitability? Have you considered repairing vehicles other than automobiles – such as motorcycles, snowmobiles, ATVs (all-terrain vehicles), boats or personal watercraft (jet skis and wave runners)? Any vehicle that can be repaired and sold for market value can be an additional source of income.
As the collision repair market contracts across the country, the market is becoming more competitive; consequently, many shops are looking for alternative revenue streams. According to a 2013 survey conducted by the Collision Repair Education Foundation and I-CAR, the economy and the collision repair industry have been through significant changes. The report, “A Snapshot of the Collision Repair Industry,” states that the industry has experienced a market size reduction of 3,047 shops to a current count of 40,488 shops since the last survey was completed six years ago.
Changing business outlook
There are many reasons why the collision repair industry is shrinking, including automobile construction, environmental regulations, repair equipment costs, an aging workforce and retaining employees. Technological advancements in manufacturing have led to vehicles that are built to last longer. Safety innovations, such as collision avoidance systems, not only help to prevent accidents by warning the driver of a potential collision, but, ultimately, also reduce the number of damaged cars that need repairs.
Some collision shops are finding it difficult to remain in business due to the expense of keeping pace with increased environmental regulations. Painting restrictions, solvent recycling, hazardous waste considerations and personnel safety equipment needs are all areas that require investment to meet government standards for shop operation. Even though these standards are good for the environment and personnel, they add to the costs of running a repair shop.
As automobiles become more sophisticated in their design, collision shops must continue to invest in computer-controlled diagnostic equipment and other specialized equipment for repairing today’s vehicles. An aging workforce is also taking its toll on the industry. As experienced technicians retire, there is a lack of younger talent coming into the industry to replace the more skilled worker.
This can be especially problematic for smaller shops that have fewer workers overall and are finding it difficult to hire new talent. Although a collision technician can have a lucrative and rewarding career, it is not seen as a top career choice by many young people. Still, there are several technical training schools and courses available to younger people to help them learn about the industry’s career opportunities.
New business prospects
The challenge, then, for shop owners who are able to hire good employees, is retaining them. If an owner cannot meet the income expectations of its employees, those employees will leave. So the shop owner must always be on the lookout for new business to keep employees busy with interesting work and to keep wages at a competitive level.
Repairing vehicles other than automobiles should not incur any extra investment for a body shop, nor does it require any extraordinary knowledge, techniques, products or tools. The substrate body materials on ATVs, boats, snowmobiles and other recreational vehicles are similar to those found on cars. Collision technicians will be familiar with these materials – plastics, composites, aluminum, metals, fiberglass – and the products used to repair damage to these substrates. It is likely that no initial investment will be required to repair other types of vehicles.
Larger repair shops, such as those geared towards the heavy-duty trucking industry, might also consider repairing equipment used in farming, construction and industrial settings. The idea is to keep the focus on vehicles that can physically fit into your facility layout – automobile-size vehicles for a smaller shop and larger pieces of equipment for heavy-duty facilities. As an alternative, consider going into the field to perform repair operations.
The organizational repair structure for these alternate vehicles is not as apparent as for the automobile repair market. Many of these recreational owners do their own repairs or rely on the expertise of friends and acquaintances, while others seek out dealerships for repair needs. But using a dealership for repair might not be convenient since many of the recreational vehicles sold, such as boats, personal watercraft and snowmobiles, are used many miles away from their original purchase locale.
If you have satisfied, regular customers who trust your shop and its technicians, you can build on that relationship to attract new business to repair different types of vehicles other than cars. Similarly, a customer who has been consistently using your repair shop and is happy with the service might be overlooking your shop as a potential place to repair these vehicles. The convenience of using a local repair shop can be a big draw for both existing and new customers.
Same Repairs, Same Products
There should be no concern about what repair products or equipment are required for repairing recreational vehicles – it’s the same products that are used for auto repair! Collision repair shops have these products on hand, ready to repair any vehicle – metal-bonding adhesives, plastic-bonding adhesives, cross-bonding adhesives, repair adhesives for rigid and flexible substrates and two-component seam sealers. The same tools and equipment are used for repair operations, also, such as manual and pneumatic dispensing guns for adhesives and seam sealers.
Suppliers of automotive repair products are labeling their products to be more inclusive of various types of repair applications. While these repair products can be been used on vehicles other than automobiles, the product descriptions tend to be more market specific. As suppliers transition to product descriptions that reflect applications and substrates, rather than a particular market, do not be concerned about using automotive repair products on recreational vehicles. These products are formulated for repairs on substrates found in all vehicles. If in doubt, consult with your supplier to make sure you are using the proper product for the substrate.
Many suppliers also offer informational sheets featuring standard operating procedures (SOPs) for properly bonding metal or fixing plastic substrates in any application. The SOPs offer details on identifying a repair, choosing the right repair product, preparing the substrate surface, applying the repair product and finishing the repair. Technical tips teach technicians the key steps for repairing damaged vehicles, and help with determining if repairs are cosmetic or structural.
A well-trained, experienced technician should be able to repair any substrate damage incurred by a recreational vehicle, much as the technician would for automotive damage. As an example, whether you are repairing damage to a personal watercraft or a fender on a motorcycle or a bumper on an ATV – if it is a flexible plastic part – you use the same product as if you were repairing damage to an automobile. It’s the same substrate, so you use the same repair products and techniques.
Repairing alternate types of vehicles is really simpler than you might expect. If you are bonding metals on a snowmobile, you are still bonding metal. If you are repairing a flexible plastic part, you are still fixing a flexible plastic part. If you are bonding aluminum to aluminum or aluminum to steel or steel to steel or steel to fiberglass on any type of vehicle, the repair products and processes are still the same.
For a collision repair shop, diversifying the repair menu can be a potential revenue stream. Bringing in different types of vehicles for repair can keep a shop functioning and busy, and help with employee retention, while providing better overall service to an expanding customer base.
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