Do you ever think about adding a new paint booth because the paint department is bottlenecked? Or, adding more employees because you just can’t get the work out? How about expanding your current space, or buying a bigger shop, because you can’t handle the volume? Before you do any of the above, try optimizing operational outcomes; a solution that will help increase your capacity TODAY.
Optimization of your labor is your future. It’s inevitable that profitability and survivability are going to force us into a more productive business model to thrive and prosper in an industry of constant and unpredictable change. The old model cannot sustain the evolving demands of the collision industry; by focusing on the optimization and utilization of your available skilled labor, your shop can not only survive, but thrive.
Why is Labor critical? New technicians are not entering the industry because the work is seen as chaotic and labor intensive. In an industry where current repair complexities are increasing in an industry with an average touch time of 2.6 labor hours per day, labor improvement is our greatest opportunity. An opportunity not just for profitability but the quality of life that comes with it.
Labor undoubtedly creates the biggest potential profit, typically returning over 60% or our gross margin. A full parking lot without the available labor to complete the work on-time (meet cycle time goals) is a undesirable situation for any collision center.
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