Industry Insight
—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.
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MSOs Discuss Collision Parts Challenges, Increased Work-in-Progress
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A panel of representatives from a of course once they get docked, you like we can build three-fourths of number of multi-shop collision re- still need trucks and people to un- the job or even more, but too often pair operations at the MSO Sympo- load them. It’s evolving, and it’s there’s that one critical part—even with Ed Attanasio a common part, like a bumper covsium in Las Vegas in November dis- pretty painful.” cussed how disruptions in the parts Darrell Amberson, president er—that we’re waiting months for.” supply chain are impacting their of operations for LaMettry’s Colli- Hezar said that type of situation business. sion, which has 10 collision repair now means Caliber has “somewhere All agreed the parts challeng- shops and three mechanical shops in about $50 million to $60 million of es are not limited to any particu- Minnesota, concurred. work-in-progress…with cars sitting in parking lots, waiting to lar parts segments, including new with Ed Attanasio be finalized.” OEM, used and non-OEM. “I think we have problems in all Amberson, too, said his categories,” said Marty Evans, an company has seen an increase of between 10% MSO operator in Washington who and 20% in his company’s also is COO of the Certified Colliwork-in-progress compared sion Group banner network. to pre-pandemic. Shawn Hezar, chief client offiwith Ed Attanasio The panel discussing parts supply chain issues at the “It’s a mixed blessing becer for Caliber Collision, agreed all MSO Symposium included, pictured left to right, Mark the parts industry segments are fac- Miller, Shawn Hezar, Darrell Amberson and Marty cause in today’s world we ing the same challenges, in terms of Evans almost have to have more labor and logistics. work-in-progress to keep “I live in Los Angeles where we “We’re seeing it among Asian our people busy,” Amberson said. can actually seewith the ships lined up, manufacturers, Europeans, domes- “Because there are too many jobs Ed Attanasio waiting to be docked,” he said. “And tics,” Amberson said. “It often feels for which we’re waiting for insur-
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ance authorization or parts. But the downside is it creates a lot of chaos, and delays for the customer, more cycle time for the insurers.” In some cases, other panelists acknowledged, it is impacting their customer satisfaction. “As a general rule, yes, we are seeing CSI going down, and that’s very painful,” Evans said. “As much as we try, as much as we be proactive and communicate, you sometimes get the head nod or yes, that they understand, but the survey goes out and that conversation never took place. We’re all doing everything we can to communicate, but you’re not going to win every time.” Hezar said Caliber was “knocking it out of the park” in terms of CSI in 2020 when work loads were down, but said 2021 “has been tough.” That in turn, he said, can have an impact on employee morale.
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