Number of reported accidents not decreasing

Despite a decrease in the distance motorists are driving, there is not a decrease in the number of accidents being reported, Rick Tuuri, president of Audatex told delegates at the Canadian Collision Industry Forum in Toronto.
“The average collision happens within five miles of your house, so even though people are driving a measurable percentage less, [it is] not really having an effect on [the number of] collisions as dramatically as you might think,” Tuuri said.
But, even though it appears that people are holding off on filing minor repair claims, total loss claims are increasing as the price of new vehicles have decreased.
Directly related, the value of on-the-road vehicles has also decreased and the dollar amount at which a vehicle is considered not worth repairing has also decreased.
In the US, and most likely in Canada, as well, there is continued pressure to contain repair costs by insurers. A shrinking labour pool and economic pressures create challenges for survival in the collision repair industry, Tuuri said.
Dealerships are closing at a rapid rate, 590 closed in 2008 with an expected 1,000 more to close in 2009, Tuuri noted. In the United States, 30% of dealerships have collision repair shops attached to them.
In order to continue competing, extreme innovation is required, Tuuri said.
Take the time to improve your working environment, he suggested. Instead of sending staff home when it’s not busy, take a look at your environment, potential partners or training opportunities.
It might also be a good time to make the switch over to going lean or green.
Take the opportunity and, in the words of Warren Buffett, “when others are greedy be fearful, when others are fearful be greedy,” Tuuri said.