Keep Your Day Job

The number of Americans filing new claims for jobless benefits fell by an unexpectedly sharp 34,000 last week, the largest drop since 2002, due in part to fewer auto sector layoffs, according to a government report released in late July.

First-time claims for state unemployment insurance aid fell to 303,000 in the week ended July 16 from a revised 337,000 the previous week, the Labor Department said.

It was the largest one-week decline since December 2002 and brought new claims to the lowest level since April.

Will this encouraging report mark a turning point for the Collision Repair Industry? No, it will not. Although the report indeed mentioned fewer layoffs in the auto sector in July, the Motor City vehicle manufacturers, at least GM and Ford, are definitely preparing to cut back on white collar jobs to cut expenses after a disappointing quarter. It is only a matter of time before both corporations begin to plan production changes and possible plant closings, impacting many more employees. Hopefully, new car sales will continue to increase this month, due to the employee discounts offered to customers.

Our feature article this month asks the question “Exclusively Collision?” Should collision repair facilities offer additional products and services in today’s extremely competitive marketplace? Or should shops specialize in only collision repair? How a shop owner or manager decides the more profitable path for a particular facility is not an easy task, nor is it risk-free.

Thorough research of many questions are demanded. A few that come readily to mind are:

• What is already available in your area?
• What services are lacking?
• What are space, equipment, training, and pricing requirements?
• How much of an investment is needed?
• Will you need additional employees?
• How can the new services be marketed effectively?

A decision to be an exclusively collision repair service requires complete confidence in your facility’s niche in the marketplace and in your ability to draw a steady flow of work into your shop.

Exclusive or diverse? Both paths demand excellence in work and in customer service. Keep your day job by striving for excellence and knowing your marketplace.