Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Collision Repairers Discuss How They Are Coping with Parts Supply Chain Issues
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A Collison Industry Conference they repair. (CIC) committee presentation earliBut Matt Radman of Coach er this year confirmed parts supply Works Auto Body in Mesa, AZ, notwith Ed Attanasio chain issues continue to plague col- ed that solution is not without its lision repairers. own challenges. A poll of repairers in the room “We had a [Hyundai] Sonata at CIC in Phoenix found about one- that we couldn’t get the side garthird said parts-related issues lead nish that goes from the bottom of them to delay scheduling about 40% the door and across the wheel well,” of jobs. Another one Ed in four said Radman said. “Right behind that is with Attanasio parts issues lead to delayed schedul- an exposed hole and unless you seal ing 60% of the time, and almost an it somehow, moisture is getting beequal number said it was 80% of the hind there. So you have to address time. this on a case-by-case basis.” Greg Horn of PartsTrader said Something as simple as a misshis company’s data indicates the me- ing window moulding could allow dian number of days for parts deliv- moisture to get into the door, he with Ed Attanasio eries was fairly stable over 2021. said, noting that returning unfin“What’s changed is the number ished vehicles requires thinking of outliers, the number of delays for through these issues and making individual components, which has sure everyone involved, including increased pretty radically,” Horn the customer and insurer, is on the said, reaching 14.7 days Decem- same page. with EdinAttanasio ber, up from 7.4 days in February Ben Clymer Jr. of Ben Clyand March of last year. mer’s The Body Shop in Southern He said if some relief from the California said he’s experienced microchip shortage enables auto- parts supply chain issues firsthand: makers to ramp up production this he’s driving his own vehicle with year, that should reduce used vehi- damage from an accident because cle values, putting moreStacey of those Phillips ve- five of the needed parts are on backwith hicles into the recycled parts supply order. chain. He said, like Radman, his com“It is probably the latter half of pany is returning more otherwise this year when we start to see some repaired vehicles to customers missrelief on both OEM and the recycled ing cosmetic parts, though he said that requires letting customers know parts side,” Hornwith said. Stacey Phillips Still-elevated transportation costs, well in advance that’s a real possihowever, have non-OEM parts man- bility, and also “triggers having an ufacturers in Taiwan rethinking what additional tracking system for all they ship. those vehicles.” “We’re also triple-checking “Should I put in one bumper cover that would take up the space of what can actually be repaired. Our with Stacey Phillips 10 headlight units, or do I ship those repair percentages are going up,” 10 headlights at a bigger margin,” Clymer said. Horn said. “So in the short term, I Rich O’Leary, manager of Fix think we’re going to see [shortages Auto Sierra Vista in Arizona, said or] price increases on larger after- another challenge of releasing vehimarket components.” cles with a cosmetic part that hasn’t The committee repairers arrived is the customer satisfaction withasked Stacey Phillips at the meeting what they are doing survey question related to whether to address parts issues. A majority they had to bring their vehicle back (70%) said one response has been to the shop. to return more vehicles to customers He said his shop has “invested with cosmetic parts still on order. in some steel and aluminum pulling Nearly two in five said that’s hap- equipment, and we do find ourselves pening with 30% or more of the cars repairing a lot more than we used
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to,” though he noted that entails understanding when that can be done as part of a safe repair, and what should not be repaired. O’Leary said they also use the PartsVoice website to locate needed OEM parts beyond the local market. “Often you’ll find a dealership around the country that has the part sitting on their shelf collecting dust,” he said. “It costs more to have them package and send it, but that’s an alternative.” But some at the meeting said searching for parts at dealerships out of your shop’s market doesn’t always resolve the issue. Some suppliers, for example, may not be willing to sell a part to ensure they have it for those in their market. “There’s a natural inclination when supply is short to take care of your best customers,” said Ken Weiss, who moderated the CIC dis-
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cussion. “One of my other concerns is that all of the parts platforms that I’m aware of on the shop or insurer retail side expect the supplier to pay for shipping. Because of that, I know there’s a lot of parts that are probably not put into the search network because the supplier is not going to absorb the shipping when it’s a low-cost part. “Or if it’s what we refer to as dimensionally-challenged; shipping a sheet metal quarter panel could cost more than the quarter panel is worth,” Weiss said. “But to me it’s better, especially if you’re the insurance company, to get the quarter panel and pay the shipping rather than have the car sitting in limbo for two months.”
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