Training Pays – and here’s the proof...

by Gloria Mann

At the recent I-CAR General Session in San Antonio Texas, one of the most powerful presentations came from Jeff Peevy, Senior Director of Field Operations with I-CAR.  Peevy discussed a recent pilot study showing the direct impact of training on shop profits. 

Acknowledging that many aspects of shop operation contribute to Key Performance Indicators, I-CAR maintains that knowledge and education form the “foundation for excellence”, by increasing operational efficiencies, reducing cycle times and minimizing repair mistakes.

Peevy noted that in the US, 11 per cent of collision repair facilities are Gold Class – a further 20 per cent provide some level of consistent technician training.  Incredibly,  69 per cent of facilities provide no technician training.  Peevy noted that in 2010-2011, 7 per cent of the shops in the non-training category went out of business.

The Training Study

To test the impact of training on profit, I-CAR studied eight collision repair facilities which had previously not participated in formal training. The shops were relatively large, averaging 12 technicians/estimators and $2.1 million in annual revenue. After an initial period of knowledge assessment, the technicians were trained to the I-CAR Platinum standard over six months, with KPIs measured every 30 days (equipment, software, paint system, processes, etc. were unchanged). The results were excellent:

·                     CSI scores improved by 5.06 per cent

·                     Cycle time improved by an average of 14 per cent

·                     Touch time improved by 45 per cent

·                     100 per cent of the shops experienced increased monthly revenue over preceding months

·                     Half of the shops averaged 5 per cent increased revenue ($8.00 gained for every dollar spent)

·                     The other half averaged 10 per cent increased revenue ($16.00 gained for every dollar spent)

I-CAR has embarked on a broader and more detailed study, but the initial findings clear show the importance of role-relevant training and knowledge to growth and success.