A case for genuine parts: Combating the decline in collision repair revenue

The pandemic has had a profound impact on the collision sector. Data shows a startling reduction in body shop repair estimate volumes across Europe.The reduction in business has led to financial distress for collision repairers, both for independent repairers and networks. Despite a slow increase in volumes in recent months, repairers are still operating on reduced revenue. The knock-on effects to workshops and parts suppliers have been significant, in some instances resulting in closures and job losses. And they have resulted in a reduction in OEM parts sales to collision repair centers or body shops.However, evidence shows that the collision repair businesses making strategic, customer-focused decisions are those most likely to survive the pandemic. Organizations most able to adapt are the ones who will find new ways to maximize their profitability.In this podcast, Andy Mills, Global Product Director Parts and Service, MSX, and his guests, Tony Bartlett, Senior UK Account Manager, MSX; Paul Collins, Collision Development Manager, MSX; Glyn Jones, Group Estimating Manager at KC Autos; and Pablo Linares, Director of Solutions Consulting and Innovation, GT Motive, discuss how the collision repair industry can better manage parts supply and insurance relationships, and overturn the downward trend in the use of genuine parts.“It’s key that there’s communication between the OEMs and the networks, that they can work together and come to an agreement about increasing the fitment of OEM parts.”Tony Bartlett, Senior UK Account Manager, MSX