A New Year Needs A New Approach

From the ever-evolving landscape of Advanced Driver Assistance Systems (ADAS) to shifts in the retail auto market,  collision repair shops must adapt to thrive. With claims count decreasing and vehicle complexity on the rise, the pressure is on to maximize profit per job, streamline operations, and ensure repairs are correct and complete every time. Resolutions are cliche, but 2025 is the year to focus on getting it right. Proper ADAS service, WIP (work in progress) management, and maximizing touch time will be paramount to success.

The Growing Importance of Servicing ADAS

ADAS technologies are no longer a luxury—they are standard in many new vehicles. These systems, including lane-keeping assist, adaptive cruise control, and automatic emergency braking, require precise calibration after an accident to ensure they continue functioning correctly. As more vehicles on the road are equipped with ADAS, the need for calibration and diagnostic services will increase. However, many shops still assume no light on the dash means there are no issues. Servicing ADAS systems requires specialized equipment, training, and knowledge. Collision repair shops must decide how to address ADAS in their repair spaces in 2025. Whether they invest in the space, equipment, and training to take calibrations on themselves or have a trusted sublet partner to handle the work, ignoring ADAS in 2025 is not an option. Failing to address ADAS may result in missed revenue opportunities, improper repairs, customer service issues, and warranty comebacks. As we look to 2025, shops prioritizing staying up-to-date with ADAS technology and certification will position themselves as leaders in the industry, ensuring they are prepared for the challenges ahead.

Decreasing Claims Count and Falling Used Car Values

Another significant challenge facing the industry is the ongoing decline in claims filed. The Q4 Crash Course report from CCC notes drops in claims count and used car values (https://www.cccis.com/reports/crash-course-2024). As vehicles become more reliable and advanced, accidents are expected to decrease, directly impacting the volume of work for collision repair shops. In addition, falling used car values mean that the repairable vehicle pool is shrinking due to increased repair costs and lower vehicle values. Every repairable vehicle counts. This presents a serious dilemma for repair shops. Fewer claims mean less revenue, and lower payouts on claims mean smaller profit margins. As a result, collision repair shops must adapt by maximizing profitability for each job they handle. Refining internal operations becomes crucial for processes that impact internal KPIs.

Maximizing Profit Per Job

Every completed repair must be precisely that—complete. Customer service reviews count more in decreased volume settings, so it’s a win anytime a comeback can be prevented. Complete repairs also maximize revenue. This is not a year of leaving things on the table. Efficiency is becoming more critical moving forward. To start maximizing repair revenue, you can improve your outcomes and efficiency with blueprinting, improving touch time, and getting a handle on your work in progress.

Blueprinting: is doing a complete teardown and providing a proper estimate for every vehicle every time. In short, this entails bringing the car in, assigning a technician, having the technician complete the disassembly, and writing a single estimate that captures all the damage and operations. This includes pulling procedures for operations, running your 1Source ADAS report, and confirming parts price and availability. Having a complete estimate at this stage allows for effective negotiation and lets you set realistic promise dates. Getting paid in full for your work and delivering the car on time becomes attainable for almost every repair.

Touch time is the time per day a technician spends actively working on a vehicle. By improving touch time, shops can reduce cycle time and increase throughput, allowing them to complete more jobs within a given period. For instance, reducing unnecessary downtime between tasks, streamlining workflows, and eliminating inefficiencies in the repair process will result in higher productivity without increasing labor costs. How often do your technicians have to stop working on a vehicle? Remove those stoppages, and you’ll see a world of difference. Not sure what the causes are? Just ask your techs!

Work-in-progress (WIP) management is another critical factor in maximizing profit and workflow efficiency. Efficiently managing WIP ensures that repair shops don’t have idle vehicles waiting for parts or labor to become available. Delays in parts procurement or disorganization in the shop can significantly increase cycle time, resulting in lost revenue and decreased customer satisfaction. By improving WIP management, shops can reduce idle time, get parts in faster, and keep technicians busy. Know how many hours per week your techs can handle and schedule accordingly. Shops that properly blueprint, maximize their touch time, and improve WIP management will remain profitable even with fewer jobs. This efficiency translates to improved cash flow, better customer satisfaction, and more revenue per repair. It’s about doing more with less, making the most of every job, and ultimately staying competitive in a changing market.

The Road Ahead

The collision repair industry is facing challenges that are reshaping the way shops operate. The rise of ADAS technologies, decreasing claims counts, and falling used car values create pressure to evolve quickly and efficiently. However, by implementing programs to turn ADAS into a revenue stream, properly blueprinting vehicles, and improving internal KPIs like touch time and WIP management, shops can survive and thrive in 2025 and beyond. The key to success is embracing these challenges as opportunities for growth and improvement. Shops that invest in technology, streamline operations, and maximize profitability on each job will be well-equipped to navigate the future of the collision repair industry. The road ahead may be uncertain, but repair shops can ensure they are ready for whatever comes next with the right strategies.

The 1Source ADAS Difference

A complete repair plan before ordering the first part is crucial for efficiency. ADAS operation identification is a critical step in the blueprinting process. With the 1Source ADAS platform, you can upload a repair estimate to identify every calibration, pre-calibration requirement, and required safety inspection. The 1Source ADAS platform reviews your estimate and provides the requirement documentation and procedure pages for completing every aspect of the ADAS portion of the repair. Start your free seven-day trial today at https://1SourceADAS.com to see all the benefits proper ADAS reporting adds to your repair process.