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Articles by Steve Kessel
THE VOICE OF THE AFRICAN COLLISION REPAIR INDUSTRY
DRIVING CHANGE: TAKEAWAYS FROM THE AUTO BODY PARTNER NATIONAL ROADSHOW The Auto Body Partner Industry Roadshow recently concluded a high-impact tour across Durban, Cape Town, Johannesburg, Pretoria, and Bloemfontein. Facing an era of rapid technological shift and tightening commercial margins, the repair sector turned out in record numbers, bringing together body shop owners, insurers, brokers, OEMs, and technology suppliers under one roof.
THE INSURANCE “DIVIDE AND RULE” PRINCIPLE IS ALIVE AND WELL
THE INSURANCE “DIVIDE AND RULE” PRINCIPLE IS ALIVE AND WELL THE INSURANCE “DIVIDE AND RULE” PRINCIPLE IS ALIVE AND WELL The sudden onset from a raft of local short-term insurance providers to sign and return the annual service level agreements renewals just a few days before the December shutdown can almost be seen as an act of bad faith. At that stage of the game, body shops were up to their necks tying up loose ends, finishing urgent jobs and getting everyone paid.
THE REPAIRER CONUNDRUM ON REPAIR VERSUS REPLACE
THE REPAIRER CONUNDRUM ON REPAIR VERSUS REPLACE Much has been said about damage quantification. It is almost a daily debate that estimators, along with assessors, discuss the outcomes of due more specifically to dictatorial enforcement, which may not always apply sound principle in regards to safety versus the cost of claim, to return the damaged vehicle to as similar condition as before the accident.
IS ANYONE LISTENING OUT THERE?
IS ANYONE LISTENING OUT THERE? As the National Director for the Collision Repair Association (CRA), there are a few brief moments when I ask myself if we are making any progress whatsoever in terms of sustainability and profitability within the collision repair business?
Journal Highlights the Unique Research Value of Zoos and Aquariums
feature Journal Highlights the Unique Research Value of Zoos and Aquariums min read As zoos and aquariums evolve collectively in the twenty-first century to address the manifold threats facing the planet, our conservation science portfolios continue to expand.
CRA FOCUS ON SUSTAINABLE SKILLS TRAINING WITH THE C3 ACADEMY
CRA FOCUS ON SUSTAINABLE SKILLS TRAINING WITH THE C3 ACADEMY CRA FOCUS ON SUSTAINABLE SKILLS TRAINING WITH THE C3 ACADEMY The subject of exactly where the collision repair trade will be able to upskill learners for the future has been a focus of the CRA since its inception, 2023. The CRA have partnered with C3 Academy as they have an excellent track record and a passionate team.
GRINDING IT OUT - AUTOREF
GRINDING IT OUT If you thought that South Africa was the only global market to be dealing at low profitability margins, we are clearly not the only nation of body shop repair concerns as a recent UK national has just revealed. The result of the investigation showed that only 3% of insurance claims in repair shops were awarded the top rate of labour charge out rates.
UPDATE REVIEW OF OEM CERTIFIED REPAIR ADVERSE DEMANDS
UPDATE REVIEW OF OEM CERTIFIED REPAIR ADVERSE DEMANDS The CRA have been in receipt of a number of complaints in regard to ongoing approval programme management companies who, despite a marginal market with low volume collision repair and decreased work supply, continue to implement costly and financially unreasonable provider specific repair approval pieces of specialised equipment.
TIMEOUS AND SUSTAINABLE REPAIRS FOCUS
TIMEOUS AND SUSTAINABLE REPAIRS FOCUS By Steve Kessel Recent body shop meetings drew a large number of our esteemed members to regional venues for updates and strategy collaboration. They came together to discuss a number of pressing issues that currently affect the vehicle repair trade. The issue most concerning is the lack of building on insurer relationships and the ever-increasing admin burdens in our facilities, which have now become a major concern.
UNFAIR LABOUR PRACTISES UNACCEPTABLE
UNFAIR LABOUR PRACTISES UNACCEPTABLE What exactly is the hold up with the Department of Trade and Industry (DTI) as no progress is being made? It is quite an alarming state-of-affairs to note that many cases of enforced anti-competitive protocol have been recorded in the vehicle collision aftermarket since 2017. To date not one of these escalated compliance complaints from the industry operational level have seen any resolution or even provided closure or updated feedback.
CRYSTAL BALL VIEW IS MOST LIKELY NEEDED FOR THIS YEAR
CRYSTAL BALL VIEW IS MOST LIKELY NEEDED FOR THIS YEAR As usual the state of play in the collision repair trade is like the curate’s egg, only good in parts as we stare back at the head winds that showed progress to a type of pristine outlook. Firstly, the slow progression to the road of a normal business cycle post-Covid proved to be very slow and in fact many current members are on record to say that volumes took most of the year to return to close to their normal trade levels of activity.
PROPOSED ACCESS TO SALVAGE VEHICLE DATABASE
The media have recently brought attention to the manner in how vehicles considered uneconomical to repair by short term motor Insurers are disposed of.
AWARENESS AND COMPLETENESS OF VEHICLE DAMAGE QUANTIFICATION (VDQ)
We are facing unprecedented times and the need for profitability has never been so great at MBR level. In terms of their construction, today’s vehicles have become far more complex. The inclusion of life-preserving technology, complex software, pyrotechnics and exotic steels have added to the intricacy of compiling an accurate repair specification.
OVERCOMING SUSTAINABLE LOSSES THROUGH REPAIR PROTOCOL
Recent research shows a failure to provide support for OEM repair methods as part of the damage quantification estimate review and this amends authorised allowance on the process where it is deemed required. The only protection we as an industry have in this type of predicament is to do the repair correctly and validate that we did so. It is also the responsibility we have to the consumer, who has entrusted us as an industry with the safety of their family.
CRA guest column: Right to repair; an industry interpretation - Repairer Driven News
CRA guest column: Right to repair; an industry interpretation By Guest Contributor on August 13, 2021 Announcements | Business Practices By Guest Contributor Editor’s note: The Collision Repairers Association of South Africa’s (CRA) Operations Director Steve Kessel first published this column on August 2, 2021 in Automotive Refinisher, the voice of the African collision repair industry. The global perspective on the state of the industry in Africa is presented here without edits.
RIGHT TO REPAIR; AN INDUSTRY INTERPRETATION
A cause of considerable concern for best practice on authorised repair is the quality to form and fit, the delay on parts sourcing with the all too often inferior parts being supplied for alternate parts sourcing as well as having to be purchased through an enforced partnership supported by and decided without collaborative agreed integration into Audatex software. This appears to be focused mainly on a single selected supplier.
RIGHT TO REPAIR; AN INDUSTRY INTERPRETATION
The publication on various platforms and the differing opinion on the implementation of the Competition Commissioner guidelines abound. However, the base of not being invested in educating the consumer on the risks they will now be expected to understand as well as the concern of not acquiring add-ons such as motor plans or warranty protection on vehicle purchase in very worrying.
TRUTH AND EQUITABLE PROCUREMENT - MOTOR BODY REPAIRER SURVIVAL
It is amazing during times of lower authorised repair volumes how the influence and strategy change is implemented through Insurers on procurement terms and conditions of trade. We are all aware of the outcomes of the COVID pandemic and the effect this had on disposable and profit earning processes across the economy.
WORK STEERING, FOR BETTER OR WORSE?
At the core of many problems experienced in the Collision Repair Industry is the fact that insurers have disowned consumers of their freedom to select a Motor Body Repairer (MBR) of their choice. Instead they have sold the consumer’s rights to entrench their position of dominance in the industry. The outcome gives them the power to decide if a repairer will receive work or not.
CRA NEWS - INSURERS PUSH FOR FURTHER UNACCEPTABLE PAYMENT DISCOUNTS
There is continued reduction of margins by trade discounting on procurement direction by Insurers. Turmoil has been evident in our new world post the Covid-19 Pandemic shutdown and even since allowed re-opening for trade in our repair industry under level 3 lockdown stress associated by making ends meet has been a challenge beyond expectation.
HAS INDUSTRY CAPTURE REACHED HUGE PROPORTIONS?
Almost anyone who has been associated with the collision repair industry for any length of time can recognise how absolutely dysfunctional it has become with an ethic of being purely transactional and rarely, if ever, transformational. This is probably because of the sheer scale of the task being a bit too daunting to undertake. As such, we have come from a small and evolving trade with often an insurance repair model, which is not fit for purpose.
CRA RESPOND TO DRAFTED THE AUTOMOTIVE COMPETITION PROPOSAL
Here is a response from the Competition Commission from the CRA on behalf of our members, as well as thinking about the collision repair industry as a whole and the preservation of this market. Collision Repairers Association (CRA) take the opportunity to thank the Commissioner for allowing the right to comment on maintaining and promoting competition in the Automotive Aftermarket Industry.
CONSIDERATION FOR ENFORCEMENT OF CONTRACTORS ON THE REPAIR PROCESS IN AUTO BODY REPAIR FACILITIES
We have progressed into a new year and with hope for a successful and innovative year based on inclusive collaboration of fair and equitable synergy. We at Collision Repairers Association (CRA) have as with our members of the accident repair industry shown technique of survival of accredited service provision under extreme and at times challenging circumstance beyond equitable commercial protocol and the process of arbitral interpretation.
CRA UPDATE - “NO REAL APPRECIATION OF THE REPAIR BUSINESS THROUGHOUT THE INDUSTRY” CLAIM
In the continuing cycle this year there has been no appreciation of business throughout the industry. Perhaps this is because not a day goes by without some insurer or appointed administrator undermining proposed operating mandates which takes a great deal of effort to justify and understand to keep pace with it all. The mandates appear to be driven through fear or favouritism or as in relevant media terms mentioned should this be determined as industry capture?
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