Unblocking the Log Jams – Help for Motor Vehicle Accident Repair Shops
Mia Constable of e2e Total Loss Vehicle Management considers how the vehicle recycling network could bring some relief to a beleaguered vehicle repair sector.
Turbocharged economic chaos is whipping up the “perfect storm” for vehicle accident repairers who are so important a component in the motor claims supply chain. The UK economy was beginning to emerge from its Covid driven decline, but post commencement of the Ukraine war the forecasted recovery is stuttering according to the World Bank. The so called “cost of living crisis” is hitting repairers as hard as any household. Compounding the situation, the industry is being hobbled by skills shortages, rising energy and property costs, finance costs, frictional relationships and lengthening key-to-key times caused by parts shortages and delays; all of which lead to daily cash flow firefighting. We are in danger of losing many fantastic repair businesses, which as relatively small independent businesses, simply don’t have the resources to weather the storm.
e2e has over 35 years’ experience in recycling end of life vehicles. Its network members have invested millions of pounds in state of the art “deconstruction” plants that reclaim, catalogue and store thousands of reusable items from vehicles. They are like vehicle factories placed into reverse. Their 50+ Authorised Treatment Facilities nationwide are Environment Agency compliant and their reclaimed vehicle parts are quality graded, warranty assured and meet the UK Standard via member audit and accreditation from the Vehicle Recyclers’ Association.
LinkedIn, the ABP Website and other forums are replete with comments from repairers saying that they are having severe problems sourcing parts for their work in progress. This means that partially complete repairs sit for what can be weeks awaiting the all-important delivery. Workshops aren’t storage sheds. They work on tight margins and need to be able to pull the vehicles through the workshop quickly to keep vital cash flowing into the business. When log jams appear, so does the associated failure demand. Everything takes longer, more customers call in more often, insurer claims departments seek more updates, vehicles are moved around more, mistakes multiply, rework escalates and costs and stress proliferate.
As a business e2e is anxious to talk to repairers about how we can help. I have been speaking with prominent members of the repair market in order to hopefully co-create ideas that could lead to new ways of doing things.
One avenue of help has been discussed many times before. It’s a well-rehearsed fact that reclaimed OEM parts offer savings of up to 75% on retail prices and if applied to borderline total loss vehicles can keep the repair in the workshop rather than see it written off and the job taken away. Perhaps a double-edged sword at present?
At e2e we also think our network can help workshops free log jams in work in progress by quickly sourcing that missing OE part that is holding up a job. Our members offer online ordering and run efficient back order lines that can be used to source that vital missing part or set of parts from our national connected network of recycling sites. Remember the reclaimed part is a reused OE part that has been skilfully and carefully removed from a donor vehicle by qualified technicians and boxed up ready to be shipped to anywhere in the UK overnight. Parts are graded for quality and provenance is transparent.
The pandemic saw many insurers and their salvage and automotive recycling suppliers develop closer, strategic relationships which can be leveraged to assist through the continued economic uncertainty. A strategic partnership based on mutual benefit, shared knowledge and value creation arms both parties with the flexibility to adapt swiftly to changing market needs. However, we are keen to extend this new era of partnership into the accident repair sector as well. Especially whilst we are all in the eye of the storm.
There have been many articles extolling the virtues of reclaimed parts published over the years. Yes, reclaimed parts are great for the planet and yes, they are a reliable source of OE quality parts at reduced cost, but as a battling repairer these are all nice to have things. Your concentration is on cash flow and your business survival strategy in these most challenging of times. e2e wants to be part of that strategy and believes it can efficiently and effectively bring relief to you in the area of motor vehicle parts procurement. Call us.
Mia Constable | Head of Business Development | e2e Total Loss Vehicle Management
Read more article from Modern Insurance Magazine here