Technical 51 www.aftermarketonline.net JULY/AUGUST 2024 Counting the cost of innovation What’s driving up the cost of cars and repairs? Repairify Innovations director Martin Pinnell-Brown shines a light on the issue When a vehicle rolls off the production line it is packed full of ADAS systems, which use sensors, cameras, and other technology to perceive their surroundings, process data, and make decisions in real time. But with the new technology comes a price; the price of the vehicle when it is brand new and the cost of repairs when it is involved in an incident. There are several distinct and simple reasons why repair costs are high, and cars are becoming more expensive to buy. The first is due to the parts shortage. An acute shortage of key components, ranging from semiconductors to raw materials required to make the parts, has led to issues that businesses have to deal with regularly. An example of this is a part that would normally take a few days to arrive can now take months — or in some cases they are simply unavailable until more can be manufactured. This is leading to increased key-tokey times for jobs and some businesses have to place vehicles in storage before work can be started when the part arrives. This means the costs are increasing very quickly. In addition, the price of components is getting ever more expensive, and the way manufacturers ensure they can pay for the technology and parts in the vehicle is by passing the cost onto the end user, which leads to the price of the vehicle continuing to rise. The second issue involves the complexity and sensitivity of the technology in vehicles, which is continuing to evolve with the addition of devices such as sensors, radar, lidar and cameras. We know these items are very sensitive, so even minor damage to something like the front radar can greatly increase the cost and may need specific tools or training to perform the work. Alongside this, even if everything goes back together, is calibrated and road tested, there may be indications that there is another issue somewhere else in the vehicle that needs to be dealt with, which again leads to additional costs as it will need to be dealt with before the vehicle can go back on the road safely. Thirdly, there is the ongoing skills shortage in the industry which, according to the IMI, will see a shortfall of 160,000 workers in the automotive sector by 2030. These figures highlight that there are a finite number of technicians in the sector who have the knowledge and skills to work on ADAS systems, leading to an increase in key-to-key times and the cost of repairs because the trained technicians qualified to perform the work are potentially stacked up with jobs. The current skills shortage in the automotive industry reminds us of the importance of understanding evolving vehicle technology. It is crucial for technicians of all ages to keep up with these advancements through ongoing training and upskilling. To do achieve this, repairers are investing in training because they understand that having the knowledge and skills to perform work on ADAS systems opens new revenue streams while futureproofing the business. Repairify is committed to upskilling its own employees and workforces across the country through continued investment in training programs. This is because we understand in no uncertain terms that training will assist in providing our team and the industry with the skills that are needed to keep pace with the work hitting the workshop floor. We understand that ADAS technology is becoming increasingly important as we move closer to autonomous vehicles. As more technology is integrated into vehicles or existing technology advances, the cost of cars will likely continue to rise. However, businesses should prioritise investing in training and the right tools for repairs. By doing so, they can save money and pass those savings on to customers.
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