As a collision shop owner, you may wonder how the industry will evolve in the next decade and how it will impact your business.
While it’s difficult to predict the future, a study suggests that due to the popularity of electric and autonomous vehicles, the overall collision repair revenue could potentially decline by 32% by 2030.
Such an incredible shift can be unsettling, but understanding why this is forecasted to happen and strategizing for adjustments now can help keep your business ahead of the curve.
In this article, we will shed some light on the possible causes of this decline and offer a few tips for addressing them.
If you plan to sell your business soon and need an exit strategy, schedule a free 20-minute conversation with Matt DiFrancesco. Discuss your vision and find out how you can adjust the nuts and bolts of your business and life to become prosperous.
The Rise of Electric and Autonomous Vehicles and its Effect on the Collision Industry
As the world steadily moves towards a greener future, the prominence of electric and autonomous vehicles is consistently rising.
With major automotive giants such as Tesla, Audi, and BMW already making significant strides in bringing these vehicles to the mainstream, it is not surprising that they could dominate the future of the automotive industry.
However, this shift towards electric and autonomous vehicles will significantly affect the collision industry. The increased safety and reliability of autonomous vehicles may lower the number of accidents and decrease the need for repairs.
Furthermore, the cost of repairing these advanced vehicles may rise due to their intricate and specialized technology.
The Types of Repairs that Electric and Autonomous Vehicles Require
The types of repairs required for these vehicles differ from traditional gas-powered cars and include a range of complex electrical components.
Autonomous vehicles’ self-driving technologies need extra care to operate dependably and safely. To provide safe and efficient repairs for these types of cars, auto body shops must adapt to these changes and stay current with the most recent technology and repair methods.
The Role of Technicians in Working with Autonomous Vehicles
The dynamics of the collision industry are changing as autonomous vehicles quickly replace traditional automobiles as the future mode of transportation. As a result, the demand for technicians who have the necessary skills to work with them is also increasing rapidly.
And since even minor errors can have significant repercussions, technicians play a crucial role in the upkeep and repair of autonomous cars.
Maintaining road safety and the viability of the collision industry depend on technicians having the training and expertise necessary to understand the complexities of this new technology.
Best Practices for Training Technicians to Complete Automated Vehicle Repair Jobs
Best practices are necessary when training technicians to repair jobs reliably and quickly. It not only helps improve the quality of repair, but it also provides a level of consistency throughout the industry.
Effective training programs ensure that mechanics have the necessary skills to fix cars according to the manufacturer’s guidelines, improving customer satisfaction and safety.
Adopting these best practices can significantly impact the collision industry’s growth and overall workflow.
Potential Challenges the Collision Repair Industry May Face in the Future
The collision industry has already seen significant changes with the introduction of new materials and advanced electronic systems in automobiles.
However, there is potential for even more challenges to emerge, ranging from the increasingly complex nature of vehicle design to the impact of autonomous vehicles.
Collision repair businesses must stay up-to-date and adjust to the changes in automotive technology because failure to do so could significantly affect the industry’s overall health.
How Can You Brace For The Impact of Electric and Autonomous Vehicles on Your Collision Repair Business?
At High Lift Financial, we understand that the number of electric and autonomous vehicles is constantly increasing, posing new challenges for collision repair business owners.
Our goal is to help you plan so you can mitigate potential risks to your business by creating a strategy that will help support your financial stability regardless of future changes to business trends or regulations.
Get started today – contact us at High Lift Financial and see how we can help protect your bottom line! Schedule a free strategy consultation with us to discuss a customized plan that will fit your business.
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The collision repair market is fiercely competitive and developing all the time. Shop owners need to be alert and up-to-date to stay on top of the game. High Lift Financial is aware of these difficulties and addresses all facets of financial planning by speaking with leaders and specialists in the field. Here are our top 3 recommendations for collision repair business owners that you might find interesting:
Disclaimer
Matt DiFrancesco is the Principal and Financial Technician at High Lift Financial. He is a Certified Exit Planner (CExPTM), an exclusive designation focusing on the collision repair industry. He can be reached at matt@highliftfin.com or (814) 201-5855. No tax or legal advice is intended.