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Paul Martin Managing Director Motorcycle Accident Repairs: Time to rethink the model?

Paul Martin Managing Director Motorcycle Accident Repairs: Time to rethink the model?. “If things are going to stay the same, there will have to be some changes made” Lampedusa, The Leopard.

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Paul Martin Managing Director Motorcycle Accident Repairs: Time to rethink the model?

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  1. Paul Martin Managing Director Motorcycle Accident Repairs: Time to rethink the model?

  2. “If things are going to stay the same, there will have to be some changes made” Lampedusa, The Leopard

  3. Has the rapid evolution of the structure of motorcycle accident repairs delivered the expected benefits? Despite the changes in motorcycle repair structures costs have not been contained!

  4. Are current models for motorcycle accident repair up to the job and are they right for the future? • Dangers of “Convergent thinking” and rejection of alternative ideas • Scale is no guarantee of future success • Lack of adaptability to changing circumstances (HBOS, Northern Rock, Dinosaurs) • Costs have a habit of appearing elsewhere

  5. The ascent of motorcycle repairs.. From dealer to super-centre to….. Claims Management Companies Super Centres Networks Independent Repairer ? Dealer

  6. Motorcycle Dealers.. • Repair quality high (all new parts) • Customer service & relationship good • No genuine repair capability • Expensive • Very high total loss rate • No leverage for insurers • Little in the way of cost control

  7. Management & Claims Companies… • Implement insurer claims handling process usually based on the car model often not recognising or understanding of the difference • Processing structure geared to cars • Understanding of what can and can’t be repaired • Engineering • Attitude to Repairers • Significant imbalance between value added and costs imposed • Once the contract signed contact usually focussed on complaints and problems-no added value to repairers

  8. Networks and independent repairers… • Independent repairers; the real drivers of change and laid foundations for future development • Allowed repair cost reduction • Reduced total losses • Improved customer focus and quality • Platform for future development • Multiple outlets • Complexity and the challenge to middle management of something you didn’t understand (car mentality) • The allure of the mythical cost reduction • Variable skill sets and consistent approaches • “major repair centre” in the NW that has no specialist skills (outsourced)

  9. Super-Centres… • One stop shop has its attractions • Easy to manage • Good contract terms • Apparent in house reduction of cost • People • “Product Tail” (motorcycles) is no longer a problem; or is it?

  10. Super Centres: what are the challenges and risks…? • What is the capacity & availability of repair skills • What are the real skill capabilities of a super centre? • Workforce mobility-nationally and locally • What is the real repair capacity and what does a lack of it cause? • How many super centre companies can the market sustain? • Consolidate operations into a very small group & loss of diversity • Leading to de-skilling across the UK • Independents will become sub-optimal to survive • Loss of negotiating position • As average repair times are 4-6 weeks then super-centres require substantial storage facilities, with rising transport and energy costs, where are the costs recovered? • What does scale do to customer and other stakeholders relationships and service?

  11. Super Centres: what are the challenges and risks…? • What is the business model and the drivers of revenue and how does that affect the drive for better & more cost effective repair; where is the management focus? • Non Fault: Hire & PI, Integrated Engineering • Total loss costs-rates, storage & other charges • Raises questions over conflict of interests • Sensitivity of potentially highly geared, high volume lower margin businesses to economic downturns

  12. What might be the way forward for motorcycle accident repairs? • Place for claims/repair management companies but • Managed by people who understand motorcycles • Focus on motorcycles and not just an add on to cars • Engineering process needs to be properly integrated with engineers who understand motorcycles • Well structured, streamlined network of independent repairers focussed on what they do best: repair motorcycles • Centralisation of key processes managed by web based IT

  13. The questions are ours to ask, the decisions are ours to make and the future of motorcycle accident repair is ours to shape…

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