Sustainable Repair

Sustainability is arguably the most important issue facing the collision repair industry today. More and more, insurance companies are looking to partner with collision repair shops that are demonstrating a clear commitment to creating a sustainable collision repair industry.

The depth of a repairer’s commitment to sustainable operations and practices is likely to play a role in whether or not it succeeds in the future, and if it is able to engage in long-term relations with the insurance industry.

By adopting sustainable workflows and processes, repairers are sending a clear message to their insurance partners that they are on a journey to improving their efficiency and profitability, and becoming more competitive.

Repairers can achieve this by identifying and stripping out waste. It becomes a win for the repairer, its employees, the consumer, their insurance partners and, ultimately, the planet.

In a nutshell, sustainability in the collision repair industry is about extracting more value from fewer resources. It is about doing business smarter – being more productive and efficient – which reduces costs and increases profitability and capacity. It must be viewed as an investment in a repairer’s long-term competitive advantage.

Many insurance companies, including Economical Insurance, support sustainability because it helps the collision repair industry be more respectful of the planet. When workflows and processes are made more efficient, unnecessary costs are removed, performance improves and capacity increases, which aids in stabilizing overall repair costs and enhances the repairer’s profitability.

When a repairer is more profitable, investments can be made in people and in the business to keep pace with developments in technology.

Increased efficiency and capacity ensures that repairs are made to the highest standards and that repair delivery dates are honoured. That, in turn, helps ensure policyholders receive the level of service they expect, including getting their vehicles back on the date promised.

Economical Insurance recently partnered with AkzoNobel, a leading global paints and coatings company ranked number one on the Dow Jones Sustainability Index, to develop a sustainability assessment tool that allows it to identify collision repair facilities sharing the same commitment to continuous process improvement in their business practices.

The tool has been used to audit more than 400 of the insurer’s designated repair facilities.

Both companies have a shared vision of sustainability and sustainable business practices within the collision repair industry. Both also see that the low-carbon economy is already under way, meaning insurers must be prepared to meet consumer needs in a low-carbon economy.

With the tool, the criteria has been enriched to help identify, evaluate and select preferred vendors focused on continuous process improvement and those that are making investments in becoming more efficient and more profitable, as well as developing a solid plan towards sustainability.

The tool – Economical Insurance was recognized with AkzoNobel’s FIT Sustainability Award in 2014 – further helps to demonstrate that operational efficiency, lean practices, greater profits and environmental sustainability are not mutually exclusive goals.

The tool is made available to collision centres that want to measure themselves in the area of sustainable practices or that are seeking guidance on future-proofing their business in terms that can be easily understood and actioned. This will help them boost their competitiveness in the marketplace.

From a profit standpoint, when a collision repair shop strips out waste in its workflow and practices, it becomes more efficient and profitable, ultimately becoming more competitive.

From an insurance perspective, when a shop is more efficient and is able to increase its production capacity along with reducing repair cycle times, overall claim costs are reduced.

The adoption of AkzoNobel’s concepts of process-centered environments has improved the efficiency of Economical Insurance’s claims-handling process, and has harmonized workflows with the activities of the collision repair shops, thereby reducing touch time in the repair process and allowing for more efficient and effective deployment of resources.

In addition, strides made by accredited collision repair networks mean they are trusted to make repair decisions on the insurer’s behalf and to address customer needs right away. They are accountable for those decisions as part of a robust re-inspection and audit process, the net effect of which is a smoother process with shorter cycle times.

Awareness of sustainable business practices help repairers realize how they can strip out waste in their workflows and reduce costs to improve the bottom line. It helps the industry be more profitable and capable of investing in the technology necessary to be accredited for making repairs to vehicles that are constructed with increasingly sophisticated technology and advanced materials.

Initiatives that will improve a repairer’s sustainability include the following:

• consider ways of improving the front-office administration and processing of claims to reduce touch time and to save money on internal expenses and overhead;

• stay up to date on the best, most efficient products and follow through on investments in the business to stay efficient;

• ensure 100% compliance in the proper disposal of paints and other hazardous materials;

• reduce energy costs by investing in more efficient lighting, compressors and spray booths, as well as by taking steps to reduce heat loss;

• reduce water consumption by capturing and reusing car wash water;

• upgrade lighting and insulation to qualify for available improvement grants;

• involve employees in business sustainability efforts so that employees understand the positive impact to the bottom line, and that a stronger bottom line translate to both better job stability and growth opportunities;

• have repair shops tell their sustainability stories to enhance their corporate images and reputations; and

• have repair shops give back to their communities through donations and sponsorships to demonstrate their long-term commitment to the communities they serve.

The first and foremost step towards achieving sustainability is accepting the fact that a sustainable repair industry is vital to its future success. Repair shops need to know how to read the signs of change in their marketplace.

As such, they must be prepared to invest as they build their sustainability plan, they need to always be aware of the impacts on the customer and the environment, and they must never lose focus of front-line employees in their drive towards sustainability.