Are You Going to Thrive in ’25?

by Evangelos “Lucky” Papageorg, AASP/MA Executive Director

As we transition from “MORE IN ’24” to “THRIVE IN ’25,” it’s clear we have much more to achieve. Our efforts, along with those of our members, are beginning to bear fruit. All members of the ALLIANCE are well-acquainted with the advances we’ve made and the changes we’ve helped implement.

Our relationships with legislators, members of the executive office and regulators have strengthened significantly. Notably, there are key personnel changes in our industry that will shape our future. We continue our advocacy on behalf of the industry. Additionally, changes in the leadership of the ALLIANCE are on the horizon, with elections taking place for a new Executive Board and fresh faces joining our Board of Directors for the upcoming two-year term. Together, these Boards steer our efforts to educate members, expand our membership and influence legislators in favor of consumers and the collision repair industry as a whole.

Just as with our national and local elections this past November, we each have the opportunity to voice our preferences and impact our direction, setting goals and implementing plans to accomplish them.

It is hard work; nothing worth achieving comes easily. At times, it may feel like we are bogged down, but that is when we must keep up the pressure to maintain our momentum. This applies to issues such as fair and reasonable labor reimbursement rates and ensuring that all parties involved in the claims and repair process are held accountable – from insurance companies to claims adjusters and physical damage appraisers.

We have seen positive momentum because there are those among us who continue to apply pressure and remain steadfast in pursuing the goals they have set for themselves, their employees and their businesses. They have come to realize that they hold the power to enact changes that directly affect their success. Many shops are discovering that when given the opportunity to explain the insurance practices that hinder them – those that fail to abide by regulations designed to expedite the claims and repair process – vehicle owners often understand and advocate for themselves. These vehicle owners recognize they have been victimized by insurers who fail to keep the promises made through indemnification insurance policies, designed to make them whole again in the event of a loss. They understand that repair shops advocate not only for their own interests but also truly care about the vehicle owner, unlike the insurers who consistently focus solely on their bottom line, often at the expense of the vehicle owner. 

Insurers are guaranteed a profit, regardless of their performance. They create their own poor business practices and then pass the resulting increased administrative expenses onto policyholders. Adding insult to injury, their CEOs receive exorbitant salaries (see this month’s cover story beginning on page 28), all while claiming losses – despite reporting billions in profits. Just because you didn’t meet expectations doesn’t mean you lost money!

Together, many shops and vehicle owners are saying “enough is enough.” Vehicle owners are beginning to understand the importance of paying for proper procedures, even when the insurer refuses to acknowledge that “recommended” means “must” in order to ensure the return of the vehicle to a safe, pre-loss operational condition. Savvy vehicle owners recognize they must pay for necessary procedures, just as they would when visiting their doctor. When a doctor “recommends” a specific medical procedure or test beneficial for diagnosis and treatment, the patient is likely to agree, even if the insurer deems it unnecessary – after all, the doctor is the expert, not the insurer. It has been said many times before and bears repeating: YOU ARE THE EXPERT in the damage repair process, NOT the appraiser or the insurer!

To have any chance to “Thrive In ‘25,” you must embrace this concept. Do NOT be afraid to charge a fair and reasonable labor rate for what has become an increasingly technical repair field and carries significant liabilities if you fail to provide proper repairs. You must stay vigilant about the changing OEM repair requirements and recommendations, which can shift rapidly. You also have to ensure you can pay your staff and technicians fairly for the knowledge and expertise they bring, which is vital to your success – and even more importantly, to retaining them.

We all know that the collision repair field has always been challenging and has become increasingly difficult, especially for those who persistently strive to do the right thing. Yes, even the insurance industry recognizes this! They are merely more resistant to changes from a third-party payee perspective. They will continue to practice the “three Ds” – Deny, Delay and Defend. Those shops that do not take a proactive approach, instead waiting for the insurance industry to change, will not thrive in the future. They may survive for a bit longer, but this will ultimately be to the detriment of the entire industry. It will be the knowledgeable, fearless and forward-thinking shops that will reap the benefits of the impending changes.

You must ask yourself, “Where do I see my business in the next five years?” If you want to be a successful, integral, contributing member of this great and essential industry, you must start taking the right steps TODAY! The saying “He who hesitates is lost” could not be truer; however, it is NOT too late. It will take hard work and perseverance. This association is, and will continue to be, here to help! It is a partnership, however. If you are not currently a member, join us now using the application on page 7, or sign up online via our website, aaspma.org under the JOIN NOW tab.

TOGETHER, WE WILL ALL “THRIVE IN ’25”!

Want more? Check out the December 2024 issue of New England Automotive Report!