One shop utilizes a meticulous teardown discovery and quality control checksheet; another posts OEM guidelines on a whiteboard to keep employees on their toes; others have dedicated diagnostic technicians.
There’s no one uniform way to run a collision repair shop, but these responses from shop operators that took the 2017 FenderBender Tech+Tools Survey signify one key trend: Those keeping up with the tools and technologies reshaping the industry are ready to adapt along with it.
And when flipping through the responses posted by the survey’s almost 150 respondents, the changes between FenderBender’s previous Tech+Tools survey in 2014 and today are evident. The difference in priorities between MSOs, dealerships and independent shops is also clear. This survey certainly isn’t a comprehensive representation of the industry, but it is a snapshot of what could represent a larger trend in shops’ willingness to keep up with rapidly advancing vehicle technology and structure.
In the following pages, FenderBender compares and contrasts the technology and tool trends our survey has observed, and how it could paint a landscape for the industry’s attentiveness to tools and technologies.
The Typical ShopRoughly 150 industry professionals completed the Tech+Tools Survey. And, while they were evenly dispersed across all U.S. markets, the majority of respondents followed a distinct demographic pattern that also closely aligns with our overall readership.
The Average Shop
Business Type: Independent, single–location repair business (64%)
Region: Midwest (40%)
Shop Size: 5,000–9,999 square feet (31%)
Staff Size: 11+ (37%)
Annual Revenue: $1M–$2.49M (29%)
Percentage of Sales from DRPs: 0% (31%)
The Tech+Tools Budget
A glimpse at how much revenue collision repair shops are dedicating to tools and technologies.
Lack of a Plan
Compared to the 2014 FenderBender Tech+Tools Survey, the industry’s overall willingness to budget for technology, tools and equipment investments has remained relatively unchanged. Despite the attention and focus that has been given to the importance of staying on top of tech and tool trends, myriad reasons have likely resulted in 29 percent of shops failing to have a specific budget in place for tools.
What percentage of your business's annual revenue do you allot for technology, tools and equipment investments?
0%: 2%
1–5%: 20%
6–10%: 26%
11–15%: 8%
16–20%+: 10%
21% or more: 6%
I don't have a specific budget for technology, tools and equipment: 29%
Who is Investing in Tech+Tools?
While it may be no surprise that MSOs and dealerships are more willing to dedicate higher portions of their budgets to technological upgrades, it turns out that collision repair shops are less and less likely to invest more money in tech and tools as their annual revenue trends up.
Under $1M
–0–10%: 53%
–11–20%: 17%
–21% or more: 6%
–I don't have a specific budget for technology, tools and equipment: 25%
$1M–$2.49M
–0–10%: 47%
–11–20%: 19%
–21% or more: 7%
–I don't have a specific budget for technology, tools and equipment: 28%
$2.5M+
–0–10%: 39%
–11–20%: 18%
–21% or more: 6%
–I don't have a specific budget for technology, tools and equipment: 36%
–––––––
Independents
–0–10%: 49%
–11–20%: 16%
–21% or more: 5%
–I don't have a specific budget for technology, tools and equipment: 30%
MSOs
–0–10%: 47%
–11–20%: 21%
–21% or more: 5%
–I don't have a specific budget for technology, tools and equipment: 26%
Dealerships
–0–10%: 46%
–11–20%: 15%
–21% or more: 12%
–I don't have a specific budget for technology, tools and equipment: 27%
The Horizon for Tech+Tool InvestmentsBreaking down which tools and equipment shops are seeking out in the next 18 months.
Tech+Tool Priorities
In what is likely a sign of the times, three years ago, when aluminum repairs were being introduced more heavily, shops were more likely to invest in aluminum-specific equipment (42% of shops in 2014) as opposed to 2017 (31% of shops). The same mentality can be applied to shops’ intentions to purchase diagnostic tools in 2017 (30% of shops) compared to 2014 (17% of shops).
Which tools, equipment and services does your business intends to purchase in the next 18 months?
–Hand and power tools: 38%
–Aluminum–specific tools and equipment: 31%
–Diagnostic tools and equipment: 30%
–Parts carts, stands and dollies: 27%
–Welding equipment: 18%
–Curtain wall/clean room: 17%
–Lift equipment: 16%
–Paint equipment (spray guns, cups, etc.): 15%
–3D measuring system: 14%
–Air compressor: 14%
–Plastic welding equipment: 13%
–OEM repair information system: 12%
–Paint booth equipment (lights, stands, heating and drying systems, etc.): 12%
–Frame pulling equipment or frame bench: 11%
–Wheel alignment system: 8%
–Breathing systems: 8%
–Estimating system: 8%
–Air filtration system: 7%
–Management system: 6%
–Paint booth: 6%
–Paint vendor: 6%
–CRM software: 5%
–CSI software: 5%
–KPI software: 5%
–Parts procurement software: 3%
Breaking Down Tech+Tool Investments
Perhaps what is most enlightening about this section of the survey is the breakdown of the specific tools in which businesses of various sizes are investing. According to the survey, a shop pulling in $500,000 in annual revenue has different tech and tool priorities than a shop earning $2.5 million—a similar trend when comparing independents and MSOs and dealerships. While all shops seems to be investing in the same equipment, dealerships (for example) are three times as likely to invest in 3D measuring systems, while shops earning over $2.5 million in annual revenue are twice as likely to invest in OEM repair information systems.
Top Tools by Revenue
Under $1M
–Hand and power tools
–Aluminum-specific tools and equipment
–Diagnostic tools and equipment
–Parts carts, stands and dollies
–Welding equipment
$1M–$2.49M
–Aluminum-specific tools and equipment
–Hand and power tools
–Parts carts, stands and dollies
–Diagnostic tools and equipment
–Breathing systems
$2.5M+
–Diagnostic tools and equipment
–Parts carts, stands and dollies
–Hand and power tools
–Aluminum-specific tools and equipment
–OEM repair information system
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Top Tools by Business Type
Top 5 Investments for Independents
–Hand and power tools
–Diagnostic tools and equipment
–Parts carts, stands and dollies
–Aluminum-specific tools and equipment
–Welding equipment
Top 5 Investments for MSOs
–Aluminum-specific tools and equipment
–Diagnostic tools and equipment
–Hand and power tools
–OEM repair information system
–Curtain wall/clean room
Top 5 Investments for Dealerships
–Aluminum–specific tools and equipment
–Hand and power tools
–3D measuring system
–Diagnostic tools and equipment
–Parts carts, stands and dollies
The Tech+Tools Trends
Stepping back, we can observe how technology at shops has changed in the past three years, from the front office to body to paint.
Front Office
While many shops were just as likely to invest in electronic estimating systems three years ago as they are in 2017, very little appears to remain the same when it comes to the front office of collision repair shops. The average shop that participated in FenderBender’s survey is much more likely to have a streamlined system in place for managing customer service, parts procurement and KPIs overall.
2014 vs. 2017
Percentage of shops utilizing...
2014
2017
An electronic management system
55%
65%
Parts procurement software
54%
70%
CSI software
37%
50%
KPI tracking software
33%
46%
CRM software
22%
36%
Paint Department
Although the 2017 FenderBender Tech+Tools Survey expanded the number of questions covering paint departments at shops, when analyzing comparable data between 2014 and 2017, some trends have continued to grow. Particularly, the use of waterborne paint has jumped by over 10 percent, and shops are much more likely to have multiple spray booths in place.
The Typical 2014 Shop
47% spray solvent-based paint
36% spray waterborne paint
58% have one spray booth
30% have two spray booths
54% have increased air movement for waterborne systems
64% have supplemental fresh air system for painters
The Typical 2017 Shop
37% spray solvent-based paint
48% spray waterborne paint
52% have one spray booth
39% have two spray booths
63% have increased air movement for waterborne systems
67% have supplemental fresh air system for painters
Body Department
When it comes to body departments, only a few differences stick out between the 2014 and 2017 surveys. While today’s shops are more likely to invest in tech and tools overall, there are some areas where shops have actually regressed since 2014.
2014 vs. 2017
Percentage of shops that have...
2014
2017
Equipment to rivet and bond body panels
75%
69%
Plastic welding equipment
72%
70%
A squeeze–type resistance spot welder
58%
69%
A 3D measuring system
55%
64%
Advanced Materials
As signified by the 42% of shops that were planning on investing in equipment for aluminum repairs in 2014, the immense 25% jump in shops capable of performing aluminum repairs should be no surprise—the same can be said about shops’ ability to handle carbon fiber components. But upon looking deeper at the numbers for each respective year, what perhaps sticks out more is what specific equipment shops are investing in.
Aluminum
2014
31% have the capability and equipment to repair aluminum components
81% have a 220v pulse MIG welder specifically for welding aluminum vehicles
30% have a designated welding fume extraction system
55% have a specialized aluminum self-piercing rivet (SPR) gun
50% have a clean room that isolates aluminum repairs
41% have frame alignment fixtures
73% have a designated set of hand/special tools specifically for aluminum vehicles
24% a wet mix dust-extraction system
0% have a dent-extraction system specifically designed for aluminum that contains an aluminum stud welder, heat gun, pyrometer, aluminum hammers, and dent extraction system
2017
56% have the capability and equipment to repair aluminum components
85% have a 220v pulse MIG welder specifically for welding aluminum vehicles
28% have a designated welding fume-extraction system
60% have a specialized aluminum self-piercing rivet (SPR) gun
50% have a clean room that isolates aluminum repairs
42% have frame alignment fixtures
87% have a designated set of hand/special tools specifically for aluminum vehicles
33% a wet mix dust-extraction system
0% have a dent-extraction system specifically designed for aluminum that contains an aluminum stud welder, heat gun, pyrometer, aluminum hammers, and dent extraction system
Carbon Fiber
2014
9% have the capability and equipment to repair advanced structural composites or carbon fiber components
56% have a GMA MIG welder with silicon bronze welding capabilities
46% have dedicated specialty hand tools
41% have a clean room to isolate carbon fiber repairs
33% have a designated dust-extraction system
26% have a hot bonder unit
23% have vacuum bagging equipment
10% have an electronic digital tap hammer
10% have a heat blanket system
5% Caul plates for molding carbon fiber
3% Freezer for prepreg carbon fiber reinforcement material
2017
15% have the capability and equipment to repair advanced structural composites or carbon fiber components
100% have a GMA MIG welder with silicon bronze welding capabilities
35% have dedicated specialty hand tools
30% have a clean room to isolate carbon fiber repairs
22% have a designated dust-extraction system
30% have a hot bonder unit
23% have vacuum bagging equipment
10% have an electronic digital tap hammer
10% have a heat blanket system
5% Caul plates for molding carbon fiber
3% Freezer for prepreg carbon fiber reinforcement material
Scanning Statistics
As signaled by the numerous stories FenderBender has dedicated to the subject, scanning vehicles has become a huge issue in the industry—much more so than in 2014 when the survey lacked questions about diagnostics. Still, just 48% of respondents said they have a process in place to ensure pre- and post-repair scans are completed when necessary. Roughly 55% say they use a third-party service for scans. Here’s what else FenderBender found:
How often does your business perform pre- and post-repair diagnostic scans?
–Never: 14%
–Always: 39%
–Only when required by OEM repair data: 37%
–Only on structural repairs: 10%
How many OEM scan tools does your business own?
–None: 29%
–1: 35%
–2: 25%
–3 or more: 11%
Does your business utilize a third-party service for scanning services (e.g., asTech, dealership outsourcing, etc.)?
–Yes: 55%
–No: 45%
How much does your shop charge for diagnostic scans?
–One full labor hour: 45%
–Less than one full labor hour: 23%
–More than one full labor hour: 32%
Does your business have challenges being reimbursed for diagnostic scans?
–Never: 14%
–Rarely: 61%
–Most often: 25%
Do you have a process in place to ensure pre- and post-repair scans are performed when necessary?
–Yes: 48%
–No: 52%
Certification and Training
While 26% of respondents did not participate in I–CAR training in 2014, that number shrank by 8 percent in the 2017 survey. It follows the overall trends FenderBender observed in questions regarding certification and training.
Has your business earned I–CAR Gold Class recognition?
–Yes: 45%
–No, but we participate in I–CAR training: 37%
–No, we do not participate in I–CAR training: 18%
How many auto manufacturer certifications does your business have?
–0: 46%
–1: 12%
–2: 13%
–3: 4%
–4 or more: 25%
Is your business involved in collision repair industry training beyond I–CAR and manufacturer programs?
–Yes: 31%
–No: 69%
