The Northern Michigan Body Shop Association recently hosted repair advocate attorney Erica Eversman at its annual membership meeting Oct. 26 in Traverse City, MI. The presentation focused on “Parts Procurement” and the impact it will have on the collision industry. According to Eversman, the State Farm parts procurement pilot program has recently expanded and while there have been many associations speaking out against the program, many shop owners are still unaware of the negative consequences.
Approximately 45 collision repairers and vendors heard Eversman describe how the parts procurement process would further affect the repairers’ loss of business control, reduce facility profit margins, and potentially lead to other types of “procurement type processes.” Expansion of this process into other profit centers within a repair facility, such as paint and material, will only further erode shop operations and margins. She explained the future of the industry hinges on what happens now and those who participate in these types of programs have little or no concern for the future of this industry.