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Friday, 12 April 2019 20:57

Jeff Peevy Addresses Paradigm Shifts in Industry, How They Will Affect Collision Repairers

Written by
Jeff Peevy, chairman of the Collision Industry Conference (CIC) and president of the Automotive Management Institute (AMi) Jeff Peevy, chairman of the Collision Industry Conference (CIC) and president of the Automotive Management Institute (AMi)

Index

 

Peevy tells repairers who are part of a certified network and question the return on investment (ROI): “With the growing vehicle communication capabilities, collision repair marketing is difficult enough as it is without being on the wrong side of the certified OEM list generated by your customers’ cars.”

 

He encourages shops to become certified and take the necessary steps to stay part of the OEM programs.

 

Changing Type of Work in the Industry

 

From what he has observed, especially at CIC, Peevy said there is a new type of role developing in the shops---an electronic diagnostic technician.

 

“The consensus is this is the perfect role for the younger generation that naturally gravitates toward computer software and the diagnostic process related to it,” said Peevy.

 

According to the Equipment and Tool Institute (ETI), next year the value of software and electronic components will exceed the mechanical components on average. In 2000, electronics and software made up only 23 percent of the value of a vehicle; 77 percent was allocated to the mechanical aspect of the vehicle that includes everything shops have traditionally worked on in the past.

 

A decade later, electronics and software consisted of 45 percent of the value, while the remainder was mechanical. Next year, electronics and software are expected to make up 60 percent.

 

Peevy said there is a direct correlation between the value and the amount of work and time needed for the component repair.

 

Although many industry veterans are concerned about the future industry because of the widespread changes happening and the direction it’s headed, Peevy said the younger generation’s skill set perfectly positions them to deal with it.

 

Emerging Liability Issues

 

Most in the industry are now familiar with the John Eagle Collision case, which has heightened awareness of the risk of being sued for an improper repair. Peevy said there is an additional liability that shops must take notice of and that he predicts will continue to grow at a blinding pace: who owns the data collected during a repair and what can be done with it.


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