Is Big Money Driving Shops to Cruise or Crash?
by Alana Quartuccio
They say one has to spend money to make money. In the collision repair space, that phrase is an understatement.
Let’s face it. Dedicated collision repair business owners have always been known to pour blood, sweat and tears into their businesses, but nowadays it appears to be a lot less about sweat and tears and more about bleeding money into the various needs and requirements the industry commands in 2025.
Competition is out there, and that could easily influence independent body shops to keep up with the times. According to a recent CRASH Network “Who Pays for What?” survey, 52 percent of the 300 shops surveyed indicated their market as “very competitive.” And apparently, work won’t be drying up just yet, especially with LexisNexis reporting an increase in distracted driving by 68 percent year-over-year across all age demographics.
What does all this mean for the independent collision repair facility? Well, in order to have a stake in the game, a shop has to get their hands on as many accreditations as they can to prove they are the “shop of choice.” The picture varies from shop to shop but can easily include bundles of funds and time spent on I-CAR training and financial commitments into each and every OEM certification a shop wishes to pursue. Then, of course, there is all the equipment and training that goes along with all of the above. Combined, this can amount to a small fortune!
So, how does the independent body shop – the average collision repair facility, let alone the “mom and pop” shop – keep up with these demands of today’s collision repair world? Is it realistic for some and just a pipe dream for others?
“I think you’re always going to have a population of businesses that don’t want to invest in their business and continue to do what they’ve done, and that is very difficult to do in this industry, especially with the changing pace of technology and the expectations involved,” observes Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg. Many may view the various requirements of the industry as ways to get shops to spend more money, but they may not see the implications they have on the actual repair process based on all the various requirements that make training and equipment necessary and could lead to a viable business, he points out.
“It takes re-evaluating your business model on a regular basis to make sure the decisions and investments you make will deliver a return and can be amortized over a particular amount of time and can be recovered. Business owners, whether large or small, need to work closely with their support system to take a clear look at what they are spending in order to determine if they can maintain a pace and create a business model with pricing and the understanding of true cost of labor to be able to get a return on investment.”
Fifteen years ago, Jerry McNee (Ultimate Collision Repair; Edison) made the decision to pursue OEM certifications. All these years later, he currently has 26 OEM certifications.
He admits it hasn’t been a simple or easy process; some OEM certifications are simpler than others, such as ones with no parts restrictions. However, McNee says even the easier ones are “starting to be more invasive with what they are requiring and how specific things need to be. Keeping tabs on all the equipment, new products and tools required is practically a full time job.
“It almost requires a full-time employee just to manage the programs,” he says. “Between the training requirements, the tooling and audit reports, it’s a whole new entity by itself.”
“Shops need to have an understanding of what it means to be a true OEM certified shop and partner for that manufacturer,” suggests Dave Gruskos (Reliable Automotive Equipment) about making the right decisions for one’s business. “Before they even look at a certification, shops need to ask themselves if they regularly visit the dealer and know the general manager and sales manager. Because when a car is in a collision, the body shops will be involved in the OEM parts. There’s a relationship there and the dealer becomes a partner.
“All the certifications have very specific equipment required for the ones that are going to be restricting parts and such that will make it profitable for the body shop,” he continues.
As McNee indicated, maintaining certifications does take an investment in time – as well as money. “If they are truly partnering with the OEMs, they will be reading the emails that are sent to them from the OEM regularly informing shops on what is coming up, what is needed, as well as where and how to purchase it,” confirms Gruskos. “As far as training goes, it’s very difficult for the shop to manage multiple certifications because the paperwork coming up on the training, the emails coming in on the training and getting themselves registered in the proper training classes become a challenge, as well as the time they lose sending their best technicians away for training.”
“A body shop looking to pursue any of the big well-recognized certifications is going to spend upwards of half a million dollars right off the top on equipment,” indicates Gruskos. “That equipment will last a very long time and will have a very long life. So, knowing what to buy, what’s required and where and who to buy it through is so important.”
If it is all such a huge undertaking, what is motivating shops to embark on this path? For starters, McNee believes strongly in having the knowledge and support to back up fixing cars correctly because, at the end of the day, the liability is on the shop. It’s also a way to distinguish one’s business from the competition. It’s a big commitment. “A lot goes into it. It’s like the iceberg effect where you only see what’s on the surface and not everything below it.”
Collision shop owners need to think about what works best for their business and their market. “The days of ‘we fix everything’ are long gone,” says Mark Allen (Audi of America). A shop has to be realistic about what their market looks like and what works best for them. “Whether one is a single-person shop or an MSO, you really need to look at your business and determine what your business plan is. We shouldn’t be fixing everything, so you need to pick and choose what best suits your business, and that’s how you build your ROI from there.”
Addressing a common complaint that different programs require different tools, Allen says, “If you really look at it, there is commonality among many of the different brands. I say that knowing that [Audi] is the most specific. The equipment that we require has programming or design features unique to Audi and Volkswagen brands, but that doesn’t mean they’re exclusive to that. They can be used for Mercedes or BMW. Some shops leverage this to their advantage to build out their ROI.”
As for I-CAR training, it’s practically a “prerequisite to get anywhere else,” McNee states, especially in pursuit of OEM certifications. “JLR (Jaguar Land Rover) is done at an I-CAR facility. Honda and Acura are coming out with a new EV platform, and I-CAR will be hosting [training] for that. Some manufacturers are leaning on I-CAR for this type of training.”
Aside from meeting requirements, the larger challenge is finding the time and money to put into it all. “It can be a costly venture,” McNee admits, citing the expenses that go into flying technicians all over the map to train. “I just had five employees out in the last two months, and one is out currently for training. It just doesn’t end.”
McNee estimates that between training and travel costs, his business has spent close to $340,000 in just seven months of 2025 so far. On top of that, he believes another $160,000 has been invested in tooling and equipment this year alone.
“It’s not for the faint of heart, but not everyone has to be at this level,” he says of his business model.
Schulenburg says all the various training requirements can make a shop owner feel much like a travel agent these days. “They may have their most productive technicians on the road far more frequently than they ever did before, sending them off to in-person hands-on training to maintain those certifications. There’s now testing requirements that technicians need to meet in order to prove that they still have the capability of performing these tasks. There is a cost associated with that, not just in the cost of travel, but in the cost of lost labor for some of your most productive employees.”
I-CAR’s Gold Class program follows OEM repair standards and is recognized by 36 DRP and OEM network programs, providing shops with a baseline for professional development. Using this framework helps shops organize training, work efficiently, and stay compliant with the programs they choose based on their business objectives and market, supporting repairs that contribute to complete, safe, and high-quality outcomes for their customers.
What is the financial commitment to achieve I-CAR Gold or Platinum status? According to Kyle Thompson, CEO of I-CAR, costs are dependent on the shop size and technician experience. Monthly or yearly payment plans are offered for the Get to Gold Class package to help with budgeting and up to 10 percent discount toward remaining training to achieve Gold Class. Once achieved, Gold Class shops receive a 20% training discount and can join a subscription program with monthly or annual payment options.
“While the complexity and cost of vehicle repairs have increased due to ADAS, mixed materials and advanced systems, I-CAR has kept individual course pricing stable,” he explains. “At the same time, the depth and the quality of our training have grown to keep pace with evolving vehicle technology.”
Although costs may rise and vary per shop, Thompson reports “a steady increase in shops participating in training,” achieving two major milestones of 100,000 I-CAR learners trained within 12 months and 10,000 Gold Class shops. “These milestones not only demonstrate the dedication of shops and technicians to continuous learning but also signal a bright future for the collision repair industry, where commitment to skill development and safe, high-quality repairs continue to grow stronger every year while vehicles grow increasingly more complex.”
Are shops of all sizes keeping up with I-CAR training? According to Thompson, “Shop sizes naturally vary, influenced by each business’s objectives, regional needs and network involvement.
“Gold Class shops are represented across all sizes, segments and ownership types, from independent shops to MSOs,” he continued. “The drive to train and improve skills comes from the shop and its leadership.”
So, where small body shop businesses may need to rely heavily on large corporations like I-CAR and OEMs for guidance and to stay valid, most of them do set out to partner with the shop.
Allen says Audi’s certification program is open to all, and it includes resources such as their management tool, Entegral, along with position statements and videos lending to shops of all sizes.
“We have shops of all sizes, from one-man operations all the way up to MSOs,” Allen states of Audi’s certification program. Having OEM certification is indeed a distinction, but it also can more closely tie a business to the vehicles in the area. He suggests a business model be “relevant to where you live.” For example, where he lives, he sees many Audis and Teslas but a limited number of trucks and SUVs that perhaps General Motors, as an example, would manufacture.
“I think the heaviest investment of training is the initial part because you need to make sure that you have all your foundations laid out and set. After that first year, it becomes a maintenance sort of thing. Every two years, you need to re-certify for welding, whether it’s steel or aluminum.”
John Brown (Hyundai Motor America) notes that one of the major challenges shops face in pursuing OEM certification is cost, yet Hyundai program is designed to welcome businesses of all sizes. In fact, Brown emphasizes that Hyundai actively encourages independent body shops to join the program.
“Obviously larger shops typically have the resources to manage certification costs, but our program is not exclusive to them,” Brown explains. “We don’t focus on quantity, we focus on quality. We want larger shops, but we also want smaller, independent shops that often fill important niche roles in their communities. Many of these independents are exactly the type of partners we’re looking for.”
At the same time, Brown acknowledges that cost remains a real hurdle. Certification expenses come on top of the many other costs shops already manage. “Smaller shops, in particular, feel that pressure more acutely,” he says. “Since COVID, the financial landscape has changed dramatically and businesses are scrutinizing expenses more carefully than ever before.”
Brown adds that Hyundai continues to explore ways to further engage independents and multi-shop operators. “We’re always evaluating opportunities to provide meaningful support across the industry,” he shares. “That includes looking at how we can strengthen the value we bring to both larger operators and smaller independents. The goal is a well-rounded, inclusive approach that benefits shops of all sizes.”
Thompson says I-CAR made an update in 2019 to scale requirements to shop size so every shop, large or small, must have a proportional number of qualified role representatives in key positions to maintain designation, and each person can hold two of the four required roles. That way, each Gold Class shop “has the right level of trained professionals to meet industry standards, while also ensuring that they have a path appropriate for their business model.”
Where corporations may be open to working with shops of all sizes, there still are those true mom and pop shops who wholeheartedly don’t want to take that path – or just simply can’t (or won’t) – do it.
For Jeff McDowell (Leslie’s Auto Body; Fords), investing in OEM certifications is something he never felt was worthwhile for his business model. As for training, he’s spent his fair share of time on I-CAR in the past but has since decided it’s not for him. After 41 years, he is getting ready to retire.
“There’s not too many shops that operate the way I do,” says McDowell of his small operation. “It’s an old-fashioned mom and pop shop.”
He admits one of the reasons he’s retiring is because “it’s a modern world now. To upgrade, I’d have to spend a whole lot of money to keep up with the changes in the industry.”
McDowell knows he’s not alone. “It’s going to be harder for the small shop. In the tri-state area, traditionally there’s been the neighborhood shop, but with people aging out and not wanting to come into this field, a lot of the old shops are gone or on their way out.”
He suggests that perhaps in other parts of the country, it’s easier for smaller shops to survive as they likely won’t have to deal with MSOs as much. Although it’s only been a short number of years, MSOs have made their mark in the Garden State, but McDowell isn’t threatened. “I don’t really see MSOs as competition to replace someone like me here in my neighborhood.” He foresees once he closes his shop, that will be the end of the “mom and pop” shop in his area.
Could he invest in training and certifications if he wanted to? Perhaps, “but I’m a realist. I realize there are certain things I can’t do. I send a lot of work out to bigger shops [that can handle it]. You have to understand what your limitations are. If you go beyond that, you could get yourself into trouble.”
Shop owners need to be reminded that they do have choices. “Shops really have to analyze and ask themselves if that certification is even worth it,” Gruskos offers. “Because you can’t be everything to everybody and serve multiple masters. You have to pick the direction you want your company to go. If you do try to be everything to everybody, it’s simply going to be a race to the bottom.”
“Everything is an investment into your business, most especially training,” Allen suggests. Staying relevant and up-to-speed on the repair process and new technologies is an investment into the employees, as well. And to those who worry about investing in an employee who may abruptly leave, Allen suggests that training should involve everyone. “I think there’s some business maturity that we need in terms of how we grow our technicians and keep them in a career with us and give them what they need to grow as people. We kind of forget that technicians get old and tired. What is the next step for them? I think this is something the MSOs do a little bit better because they are more corporate driven. Some of the small shop guys do a really great job with this, but some don’t. It makes a difference for the employee.”
Thompson believes training is an investment into safe repairs underlining that I-CAR’s commitment to the industry is based on the belief that “repair standards, proper equipment and continuous learning are non-negotiable.” Free resources like Ask I-CAR, the Repairability Technical Support (RTS) portal and app and other features “help technicians gain knowledge and follow OEM repair procedures with confidence.”
“I don’t think you can truly be a professional in the industry today and not be investing in that ongoing development,” Schulenburg believes. “It will be hard for some people, and some will choose not to do it, but I think there are a lot of businesses who do and are making a case that is successful. I don’t always think that’s dependent on how large or small the business is. I think it’s about how committed you are to that notion that this is a part of delivering safe, proper repairs to customers.”
McNee relays his investments have 100 percent been favorable to his business, but it all comes down to what works best for the individual business. “You can be a body shop, or you can be a full-fledged collision center. Which do you choose to be?”
Want more? Check out the September 2025 issue of New Jersey Automotive!