From calibrating ADAS to repairing critical mechanical components, collision shops handle far more than body work. Kevin Gallerani, a seasoned professional in the industry who manages both collision and mechanical repairs, has witnessed firsthand the profound shifts in vehicle technology and the challenges that collision repair shops face in adapting to these changes and getting paid fairly for the work they do.
Gallerani is a fourth-generation owner of Cape Auto in Plymouth, MA, and has spent more than the last decade managing the family’s body shop and service center, which also handles mechanical service repairs. Through his experience and insights, he sheds light on the daily obstacles that collision repairers encounter.
The Complexities of Modern Mechanical Repairs
Kevin Gallerani.
Gallerani cited ADAS calibrations, safety systems and module programming when asked about the most common and complex mechanical repairs his collision shop handles. Advanced Driver Assistance Systems (ADAS) are now a staple in modern vehicles, ranging from automatic braking to lane-keeping assist. These intricate systems require technical expertise and access to up-to-date software and tools.
“Technicians must be very well-versed in reading electrical diagrams and looking up OEM procedures,” Gallerani said. “The technology in modern vehicles changes daily.”
This constant technological advancement has made vehicle repairs significantly more complicated and, more importantly, more expensive. Gallerani highlighted a persistent issue that all repairers face: the never-ending race to keep up with new software and tools.
“Trying to keep up with training and software upgrades is never-ending,” he said. “Not only are the vehicles smarter and harder to fix, but they are more expensive to fix -- for both the consumer and shops!”
The increasing sophistication of vehicles has introduced various challenges, not just for technicians but for repair shops that must invest in expensive tools and equipment to keep up with manufacturers’ demands. However, these tools and software upgrades come at a high price, which many shops struggle to afford. Gallerani said many shops are sticking with certain brands or aftermarket scan tools because they cannot afford the proper software for every vehicle manufacturer.
Fair Compensation for Collision Repair Labor
A related concern is mechanical labor compensation. In many industries, labor rates vary depending on the work being performed. Gallerani believes the technicians in collision shops should be paid at the same rate as those in traditional mechanical shops.
“I believe that mechanical labor in a collision shop should be reimbursed at the same rate as a mechanical shop. Why are we not getting the same pay if it is the same work?” he said.
Gallerani noted the inconsistency in determining labor rates, especially when “mechanical procedures are the same whether performed in a collision shop or a mechanical shop.” For him, it doesn't make sense that insurance companies have the authority to dictate reimbursement rates when the quality and complexity of the work are identical.
Another source of frustration is the challenges collision shops face when negotiating fair collision labor rates with insurers. Gallerani explained that insurance companies “are in the business of keeping their money and not spending it,” which is why they often refuse to pay fair market rates.
Battling Insurers for Fair Rates
Massachusetts, where Gallerani’s shop operates, is one of the most expensive states to live in but also home to some of the lowest labor rates in the country.
“Corrupt insurance companies are suppressing the rates, and Massachusetts agencies like the Department of Insurance and the Attorney General’s office turn their back on repairers and refuse to step in and help,” Gallerani said.
Despite the growing profits for insurers, Gallerani feels the industry is turning a blind eye to the struggles of repair shops. “Every year, we see insurers making bigger and bigger profits for their shareholders and CEOs but refusing to reimburse collision shops properly.”
Gallerani has strategies to maximize insurer payouts. “I try to push back with proper OEM documentation and subletting as many mechanical repairs as possible to my service shop that gets a labor rate three times higher than insurance reimbursement,” he said. “Easier said than done, though.”
Balancing ASE Certification and OEM Training
The issue of training and certification in the collision repair industry also came up. Gallerani emphasized the importance of both ASE certification and OEM training.
“You can never have too much training. We have all our mechanics undergo ASE training because it is consistent and hard to pass the tests. It proves that the technician has trained and studied for the test. They earn it!” he said.
ASE certification remains a cornerstone of industry credibility, but Gallerani also sees value in OEM training.
While manufacturers vary in how they train and certify technicians, the overall importance of formalized education cannot be overstated.
“OEM certifications are also essential, but all manufacturers do it differently, so it is tough to compare them all,” Gallerani said. “All shops need training and certifications to prove they have been trained properly. It should be required to open your business.”
Should Collision Shops Bring Mechanical Repairs In-House?
As vehicles grow more complex, many wonder if collision shops will eventually bring mechanical repairs in-house rather than subletting them. Gallerani’s perspective is clear: the reimbursement rate remains the biggest obstacle.
“I think collision shops would bring more in-house if they could get the proper rates,” he said. “But why struggle to do repairs for which you are not getting a fair wage?
“If the compensation for in-house mechanical work doesn’t align with the complexity and time required, collision shops have little incentive to bring these repairs under their roof,” he added. “The harder the repairs get, the harder for collision technicians to keep up with them, so they should go to a certified mechanical shop specializing in these repairs.”
A Call for Licensing in the Collision Repair Industry
Gallerani proposed a system that could elevate the collision repair profession. “Plumbers and electricians have a license system. You must do a certain amount of training and hours worked under a licensed master before applying for a license. Even barbers who cut hair for a living must pass a test to get a license to work.”
Gallerani believes mechanics and collision technicians should also be required to earn a license to stay with them for life and reflect their expertise.
“How is it possible that you could work on a high-tech vehicle with more safety systems than an airplane but get paid less hourly than a barber who cuts hair?” he said.
Leona Scott