A new whitepaper from Opus IVS shares findings from an industry study the company says it conducted to better understand how the strategic adoption of diagnostic solutions affects the efficiency and profitability of collision repair shops.

Opus IVS conducted an online survey in January to which more than 3,000 collision repair shop professionals responded. Respondents were from OEM dealership affiliated/owned, MSO franchise, MSO corporate-owned, and independent collision repair shops.

The majority of respondents (34%) work at MSO corporate-owned shops followed by 26% at independent shops, 22% at MSO franchise shops, and 18% at OEM dealership affiliated/owned shops.

“The study found that an average of 33% of all repair orders (ROs) experience problems with insurance reimbursement, and over 70% of shops are short one or more technicians,” the whitepaper states.

“The study also highlights that selecting the right diagnostic scanning partner can mitigate these challenges, potentially reducing the time to recruit capable technicians and the overall technician shortage at a shop by up to 40%. Choosing the right solution for diagnostic vehicle scanning has been found to deliver a reduction of up to a third in insurance reimbursement issues experienced by a shop.”

Issues with receiving full insurance reimbursement typically stem from the accurate assessment, diagnosis, and documentation of technologically advanced and complex modern vehicles, according to the whitepaper.

“As vehicles continue to become more technologically advanced, accurately assessing repair needs has become increasingly challenging, exacerbating insurance reimbursement challenges,” Opus wrote.

Strained shop resources as a result of the ongoing technician shortage negatively affecting cycle times compromise customer satisfaction and shop reputation — issues that Opus says more complete diagnostic documentation can help alleviate.

“These solutions empower collision repair shops with advanced scanning tools and software enabling them to conduct comprehensive vehicle diagnostics, generate detailed reports on repair requirements, offer remote support services to bridge the gap in technical expertise, and improve overall efficiency; all while integrated with the shop’s repair order management system,” the whitepaper states.

Leveraging advanced diagnostic capabilities and remote expertise can also help collision repair shops attract and retain skilled technicians, Opus added.

“As vehicles become increasingly complex, collision repair shops continue to face unprecedented challenges in delivering timely and high-quality repairs, and these results tell us that the right diagnostic solution not only can help streamline the repair process but also address critical issues such as insurance reimbursement challenges and technician shortages,” said Brian Herron, Opus IVS president and CEO, in a news release. “Our study underscores the transformative potential of diagnostic solutions and we remain committed [to] driving efficiency gains and ensuring the long-term viability of collision repair shops.”

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Featured image credit: Ika84/iStock

Pie chart provided by Opus IVS