SIMPLE STRATEGIES FOR SUSTAINABLE OPERATIONS
Column by ALYSSA MARCHESE
The urgency of addressing climate change has never been clearer, and businesses across all sectors must step up to decarbonize. By making conscious decisions about utility usage, wastage and overall operational efficiency, collision repair centres can play a significant role in this transition. The automotive repair industry is particularly well-positioned to lead the charge, given its fluency in data management and their direct impact on emissions.
WHY DECARBONIZATION MATTERS FOR PROFITABILITY
The financial benefits of decarbonization are tangible and compelling. Simple changes in behaviour and processes can reduce energy costs by over 20 percent, offering the same financial boost as a five percent increase in sales for many collision repair centres—without the need for significant capital investments in new equipment. This illustrates a crucial point: sustainability can drive profitability, and it does not always require massive financial investment. The potential for savings is significant, especially when collision repair centres begin to recognize energy consumption as a critical factor in their operational costs. Carbon equates to cost in a business, and it should be acknowledged and dealt with as such.
LEVERAGING DATA TO DRIVE OPERATIONAL EFFICIENCY
Many collision repair centers already operate with data at the core of their decisionmaking, driven by key performance indicators (KPIs) and service-level agreements (SLAs) set by work providers. However, collision repair centres often overlook the insights prominently displayed in their utility bills. Energy data, when analyzed effectively, can be a powerful tool for identifying inefficiencies (also understood as wastage) and improving profitability.
Simplicity Car Care’s data collection program has revealed that tracking utility Alyssa Marchese delivers valuable emissions insights at Simplicity Car Care’s 2023 Growth Conference. Simplicity Car Care is striving for net-zero carbon emissions in its network and has hosted several carbon-negative events. The network also holds an exclusive agreement with Carbon Neutral Repair (CNR) to assist in calculating carbon footprints. usage, waste management, and operational inefficiencies can pinpoint areas where energy is being wasted, resulting in a significant reduction in both costs and emissions. For instance, our analysis has shown that embedding a “repair-over-replace” strategy can reduce electricity consumption by 7.8 percent. This is achieved through technological optimization, but more importantly by changing the way we approach repairs and customer service.
When combined with behavioural changes—such as turning off compressors or heating systems when not in use—these savings can reach up to 20.6 percent. By simply managing energy consumption more effectively, collision repair centres can cut costs without investing in new technologies or equipment. The goal is to create a culture of awareness where every employee understands their role in managing utility resources and reducing waste.
EMPLOYEE ENGAGEMENT: A KEY FOR SUCCESS IN DECARBONIZING
A critical element of reducing utility consumption is engaging employees. While owners and managers are acutely aware of rising utility bills, employees often don’t feel the same impact. Educating staff on how their actions can reduce waste and improve efficiency is crucial to achieving these savings. Simple steps, such as ensuring that lights and equipment are turned off when not in use, can lead to measurable reductions in utility usage, contributing to both the shop’s profitability and environmental goals. Furthermore, fostering an inclusive environment where employees feel empowered to suggest improvements can lead to innovative solutions that benefit everyone, including the Earth, which is a key stakeholder in all businesses, regardless of the sector or size.
For example, hosting training sessions focused on strategies to conserve energy and implementing sustainability initiatives can help keep these concepts at the forefront of employees’ minds. Recognizing and rewarding those who actively participate in utility-saving measures can also reinforce positive behaviors and contribute to a culture of sustainability and responsibility.
TACTICAL STEPS FOR DECARBONIZATION
Decarbonization efforts extend beyond energy management. For example, maintaining workshops at optimal temperatures (14°C for workspaces and 18°C -19°C for offices) can significantly reduce heating costs, as heating costs rise by eight percent for every degree of overheating. This presents an opportunity to implement smart thermostats and other energy-efficient technologies, which can optimize and automate heating and cooling without requiring constant manual adjustments. Prioritizing automation will significantly assist in decarbonization efforts. Regular maintenance checks, such as fixing leaky compressors that unnecessarily consume power, can help prevent inefficiencies and thus wastage. These small yet impactful changes can collectively drive substantial savings while minimizing the shop’s carbon footprint. Regular audits of equipment and energy usage should be conducted to ensure that all systems operate efficiently.
A key practice of all business owners should be to regularly compare their utility consumption against shop output to identify any discrepancies. If energy usage doesn’t align with the number of jobs completed, inefficiencies are likely present and incurring cost in your business. Monitoring utility usage closely, setting a baseline, and involving staff in utility-saving initiatives is a no-cost way to achieve measurable results. It takes some time, but the payoff can be significant if these practices are utilized consistently. A systematic approach, such as establishing a monthly energy review, can help identify trends and provide actionable insights. This allows collision repair centres to make informed decisions about potential improvements and investments in utility-efficient technologies.
SUSTAINABILITY AS A COMPETITIVE ADVANTAGE
Collision repair centres that integrate sustainability into their operations not only reduce their environmental impact but also gain a competitive edge in a market where work providers and customers increasingly prioritize businesses aligned with net-zero goals. As awareness of environmental issues continues to rise, customers are more likely to choose businesses that demonstrate a commitment to sustainability.
Sustainable parts procurement, which includes prioritizing repair over replacement and using green parts, can reduce carbon emissions by up to 65.4 percent. By sourcing materials that have a lower environmental impact, collision repair centres can further enhance their reputation and appeal to environmentally conscious customers.
Additionally, embracing emerging technologies such as UV paint systems can cut carbon emissions by 46 percent and reduce process times by 64.7 percent, leading to increased operational efficiency and reduced environmental impact.
COLLABORATION AND STANDARDIZATION FOR LASTING IMPACT
Achieving decarbonization goals requires collaboration across the supply chain and the standardization of efficient processes. The introduction of simple procedures, such as energy surveys and opening and closing checklists, can lead to significant long-term savings by ensuring that daily operations are as efficient as possible.
These measures, combined with sustainable procurement practices, can significantly lower both costs and emissions. For instance, the “repair-over-replace” approach reduces not only repair costs but also cycle times, leading to faster job completion and improved customer satisfaction. By integrating sustainability into every aspect of the business, from customer interactions to supply chain management, collision repair centres can create a holistic approach that benefits both the environment and their bottom line.
Moreover, sharing best practices and collaborating with other collision repair centres can lead to a more significant impact. Industry partnerships can foster innovation and accelerate the adoption of sustainable practices across the sector. By working together, collision repair centres can amplify their voices and influence positive changes within the industry and sector. We call for everyone in the industry to innovate and collaborate. It is only through industry collaboration and adoption that we will make an impact than can address the climate crisis we are all experiencing.
As such, decarbonization is not just an environmental imperative, it is a strategic business opportunity. By implementing datadriven practices, engaging employees, and standardizing procedures, collision repair centres can reduce costs, improve efficiency, and achieve long-term profitability.
At Simplicity Car Care, we believe that sustainability is not only about protecting the planet but also about driving profitability. By embracing these practices, collision centres can lead the industry in both environmental responsibility and financial success. The transition to a sustainable business model may seem daunting, but the potential rewards— financial, reputational, and environmental— far outweigh the challenges. What is important is a consistent strategy, focused on data-driven insights that drive business goals. As we look to the future, the automotive repair industry must rise to the level of consciousness of their key stakeholders, proving that we can achieve remarkable success while contributing to a healthier and happier planet for those who live and depend on it.
The financial benefits of decarbonization are tangible and compelling. Simple changes in behaviour and processes can reduce energy costs by over 20 percent, offering the same financial boost as a five percent increase in sales for many collision repair centres.
