Creating a Clear Vision for Your Shop’s Future 

Every year, the speed at which the collision industry evolves and changes seems to increase.  

In just the last five years, vehicles have become infinitely more complex, negotiating with insurance companies has become even more difficult, and customer expectations have never been higher. 

Shops have more tools than ever at their disposal, from AI-enabled diagnostic tools to rapidly improving customer management suites and beyond. But, as the technology advances, so, too, does the need to stay on the cutting edge and keep up with the latest trends. 

It’s a tall order, and it can be overwhelming to look at all these new tools and resources and figure out where to start. However, Louie Sharp, business consultant and owner of Sharp Auto Body in Island Lake, Illinois, says there’s quite a bit of opportunity out there for those who know how to seize it. 

“One of my very favorite quotes is by entrepreneur Jim Rohn, and he basically says ‘You can't hire other people to do your pushups for you,’” Sharp says. “You just have to go do the work. You’ve got to go learn how to use AI, you have to read books, you have to find that content.” 

Shops need to figure out how to set themselves apart. In today’s AI-enabled landscape where everyone has access to the same tools, information and learning, you separate yourself by becoming the expert and advocating for your customers. 

To thrive, shops need a clear vision for the future — one that embraces new technologies, focuses on specialization and redefines relationships with insurers. 

Embracing Artificial Intelligence 

Ask anyone, regardless of their age or profession, about AI and chances are they’ll have a fairly strong opinion on it. While it still remains to be seen how much AI is really going to reshape the workforce, the technology is already reshaping how collision repair shops operate.  

Sharp says you don’t have to invest in expensive, proprietary AI platforms to harness its potential. Using open-source platforms such as ChatGPT is free, and if you know how to write strong prompts, those free-to-use platforms can help identify your target market, uncover pain points, and even generate marketing campaigns tailored to your audience.  

They can also assist with internal operations such as writing job descriptions, creating bonus programs, and drafting standard operating procedures. 

However, if you do decide to use those platforms, Sharp says it’s crucial to remember that they are open-source, meaning anything you put in will be added to its language learning model and could be used to generate prompts for someone else. 

“AI can do basically anything you ask it to, but it goes to everybody all the time,” Sharp says. “If you’ve got a brainstorm or an idea for a brand-new tool or marketing scheme, don’t put that in AI because it will disseminate that around the world.” 

Sharp adds that spending time worrying about whether AI will replace people’s jobs is, frankly, a waste. AI won’t fix cars, but it can help you run a smarter business. 

Start small with one AI platform and give it detailed information about your shop, such as location, size, specialties, certifications and market demographics. From there, you can ask detailed questions to help figure out what your target market’s pain points are.  

Once you have a solid understanding of how generative AI services work, that provides a strong knowledge base to use other AI-enabled tools such as scanners. And, as Sharp notes, AI is here to stay. 

 “It’s only going to get better and faster,” he says. 

Depth over Breadth 

Gone are the days when a single shop could repair any vehicle that rolled through the door. Today’s cars are essentially computers on wheels, loaded with advanced driver-assistance systems, complex electronics, and specialized materials.  

That complexity comes with a price tag, both in equipment and training. Darrell Amberson, VP of Industry and OEM Relations for Quality Collision Group, says some shops tend to underestimate the time, training, and money required to repair a vehicle. 

“If you're going to do the job properly, really according to factory repair procedures, and even better yet be certified at it,” Amberson says, “the range of equipment that you need is staggering.” 

Consider this: A four-year subscription to Mercedes repair software costs around $40,000, according to Amberson, and to become Audi-certified, a shop might invest $300,000 in equipment and training. For most smaller operations, trying to take on every make and model is impossible. 

Sharp agrees, saying that way of thinking has been an unsustainable business model for years. 

“Trying to be everything to everybody never works,” he says. 

Instead, shops need to identify their niche. Whether that’s EVs, luxury brands, fleet accounts, or specific OEM certifications, specialization not only makes financial sense; it also builds credibility and trust with customers. 

Amberson says talking to vendors you work with, such as your paint company, can help you identify which makes and models are more common in your area. Otherwise, doing an internal audit of what vehicles are most frequently coming into your shop can help identify a target market. 

“Take a good look at what brands are most common and look at your own brand mix, probably through your own management system, and do some calculations on that,” Amberson says. “Do you have relationships with specific dealers? That can also help you narrow it down to a few brands.” 

He also advises looking at overall industry trends to see what could be coming in the next few years. He points to EVs as a perfect case study: At this time four years ago, many thought EVs were going to dominate the industry. 

Instead, Amberson says EVs grew to become about 10% of new vehicle sales right now, and they've plateaued.  

“There’s a significant number of people who go back to ICE or hybrid,” Amberson says. “So while there’s a lot of reason to believe that the EV market share will still grow, especially as technology changes, I personally think it was a little ahead of its time. It was a little overhyped.” 

Amberson says he’s found Toyota to be a good company to watch in terms of figuring out what is a solid trend versus what is just a fad.  

“I think they're cautious, calculating, intelligent, and they try to take a lot of the emotion out of their decision-making,” he says. “If you look, they kind of hedge their bets on EVs. They've dabbled in it, but they didn't put all their eggs in that basket. They saw more future in hybrids, and that decision's proven to be wise.” 

Specialization is becoming more and more of a requirement, and Amberson says it’s crucial that shops figure out what their specialty is sooner rather than later. 

“Have a plan in terms of what brands you want to be,” he says. “Have a training plan, because the learning requirements are going to do nothing but increase.” 

Rethinking Insurance Relationships 

For decades, many shops relied on direct repair programs (DRPs) to keep work flowing. But Sharp says that model is breaking down, and DRPs often force shops to accept insurer-driven shortcuts that compromise repair quality and profitability. 

 “DRPs are a broken model,” Sharp says. “The sooner this industry figures that out, the sooner this industry is going to start to thrive and grow.” 

Instead of bending to insurer demands, Sharp says shops need to educate themselves and their customers about the need to follow manufacturers’ repair procedures and not trying to repair a vehicle for the lowest cost possible. 

Understanding state laws, such as for right to appraisal and other consumer protection regulations, can help your shop secure fair compensation. And educating customers about repair quality builds trust and differentiates your shop. 

However, Amberson says to tread lightly when dealing with right to appraisal or other methods, as going up against insurance companies directly can create a lot of risk for everyone involved. 

 “You always want to negotiate based upon facts,” Amberson says. “There are shops that dabble with right to appraisal and other legal means to try and get paid, but those tend to be cumbersome and create a lot of anxiety for all parties.” 

Knowing your state and local laws around consumer protection regulations can help you more fully explain to your customers why following OEM repair procedures is essential. And sharing success stories of how customers avoided insurer shortcuts and got proper repairs done can go a long way in differentiating your shop. 

Sharp says consulting with your customers early and often can help them be informed when dealing with insurers. 

“I once spent an hour with a customer before I ever started writing an estimate,” Sharp says. “I explained what was most important to her — quality, safety, retaining the value of her vehicle — and showed her why OEM parts and proper procedures matter.” 

Looking Ahead 

The next decade promises even more disruption in the automotive aftermarket.  

Though Amberson says ADAS calibrations will remain a safe bet for at least 20 years, given the median vehicle age of 12+ years, new technologies will continue to push the envelope.  

EV adoption has plateaued at around 10% of new vehicle sales, but hybrids are surging, and it is very possible that EV sales pick up in the not-too-distant future. And, AI will continue to infiltrate every corner of the industry. 

With all of that, Amberson says the aftermarket is under even more pressure to repair vehicles safely and properly. 

“We keep going in the direction of more and more accountability required,” Amberson says. “I-CAR has said publicly they are going to start requiring equipment components and shop inspections as part of their programs.” 

For shops, Sharp says that means one thing: adapt or disappear. 

“There are a lot of shops that are not going to be in business a year or two from now because they're not changing. They're not open-minded,” Sharp says. “And all that's going to do is open up opportunity.”