The collision repair industry is currently facing two significant challenges: rising operational costs and a shortage of skilled technicians. These issues aren’t something any single business can solve alone, but at LKQ, we understand the importance of being part of the solution. We’re committed to supporting the efforts that are driving positive change across the industry.
One of the most pressing concerns for shop owners is attracting and retaining skilled technicians. As wages rise and competition for talent intensifies, ensuring profitability becomes essential for the survival of collision centers. A key area that directly impacts profitability is Paint and Materials. At LKQ Refinish, we’re working with our partners at AkzoNobel to help shops overcome the challenges of managing Paint and Material costs.
Simplifying Paint Costs: Introducing Valorem
A common issue shops face today is understanding the true cost of paint. Often, traditional paint systems include costly “extras” that increase prices without adding value. This can lead to lengthy negotiations to remove those components, further complicating the paint purchasing process. To address this, LKQ introduced Valorem, a simplified paint system that eliminates unnecessary costs while maintaining premium performance.
Valorem provides exactly what you need: a high-quality refinish system, supported by the technical expertise of LKQ and AkzoNobel, designed to maximize profitability. Valorem’s streamlined approach means shops only pay for what they need, without sacrificing quality or performance.
Thanks to AkzoNobel’s industry-leading digital color tools, Valorem ensures first-time-right color matching, helping shops increase throughput, reduce rework, and ultimately boost profitability. In addition, the Valorem Guaranteed Quality Plan gives vehicle owners the confidence of knowing their repair is backed by a lifetime warranty promising a long-lasting, invisible repair. Whether the job is large or small, Valorem guarantees that every vehicle is restored to prime condition, delivering peace of mind and unparalleled quality.
Designed for those who demand excellence and value without compromise, Valorem delivers the power, performance, and protection of AkzoNobel and LKQ—at a great price.
Managing Inventory with NuVentory
In addition to paint costs, another area where collision centers often miss out on potential revenue is the tracking and billing of supplies. This is where NuVentory comes in—an innovative inventory management system designed to streamline operations and increase profitability. NuVentory helps shops track and bill supplies more efficiently, reducing waste and ensuring the right materials are always in stock at the right time.
NuVentory’s easy-to-use system organizes inventory effectively, using a color-coded system to indicate which supplies need replenishment. The built-in tech scan feature allows shops to run detailed reports, track material usage, and compare it against production levels. This data enables shops to spot trends, identify inefficiencies, and improve billing accuracy.
Here are some key questions NuVentory helps address:
- Were all materials billed to the job?
Ensuring accurate billing of all materials used on each job helps maximize profitability.
- Which materials were used more this month than last?
Understanding material consumption trends can help adjust purchasing strategies and control costs.
- Who is using the most materials, and does it correlate with production?
The system’s reporting capabilities allow you to analyze material consumption against production levels, providing valuable insights into how to optimize operations.
In today’s competitive environment, an effective inventory management system is no longer a luxury—it’s a necessity. With materials being manageable costs within the repair process, having the right tools in place can significantly impact your bottom line. NuVentory is designed to empower shops to manage their inventory smarter, reduce waste, and increase profitability.
The Importance of a Trusted Refinish Partner
While managing materials is crucial, it’s equally important to partner with the right refinish provider. This is why we’re excited to introduce FinishMaster by LKQ, a new exclusive premium brand that combines the best features of two industry-leading brands—Keystone Platinum Refinish Series and FinishMaster Smart products. With over 650 SKUs, FinishMaster by LKQ delivers high-performance products designed to meet the specific needs of collision centers, at an excellent value.
According to Ed Pietrzak, Vice President of Specialty Sales at LKQ, “To successfully develop your own brand, it’s critical to meet customer expectations for product performance and quality, while offering great prices. With years of experience from both LKQ and FinishMaster, we’ve established ourselves as a trusted provider of cost-effective, high-quality refinish products. FinishMaster by LKQ continues this legacy, delivering exceptional value without compromising on quality.”
Investing in the Future: Supporting the Next Generation of Technicians
At LKQ, we’re also committed to addressing the technician shortage by supporting organizations dedicated to bringing new talent into the collision repair industry. One such organization is the Collision Repair Education Foundation (CREF), which we have supported with over $2 million in lifetime monetary donations along with numerous parts donations to schools across North America.
LKQ’s Commitment to the Collision Repair Industry
LKQ is committed to being part of the solution by offering innovative products and services designed to enhance profitability and streamline operations. From simplifying paint purchasing with products like the Valorem system to optimizing inventory management with NuVentory, we are helping shops reduce waste, improve efficiency, and maximize their bottom line. Additionally, our new FinishMaster by LKQ brand brings top-quality, cost-effective refinish products to market, further strengthening our partnership with collision centers. As we address the needs of today, we are also focused on investing in the future of the industry—supporting education and training initiatives to cultivate the next generation of skilled technicians. At LKQ, we are not just navigating the challenges of the present, but actively working to build a stronger, more sustainable future for the collision repair industry.
