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Digitisation drives more sustainable and efficient car repair practices

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Integrating circular economy principles alongside digital technologies in the auto repair industry is transforming efforts to reduce waste and cut emissions, setting a new standard for environmental efficiency.

Sustainability principles lie at the core of innovative collision repair group CARe Auto, which is cutting emissions and waste across its 14 repair centres. CARe Auto

By adopting tools such as automated systems, digital diagnostics and data-sharing platforms, the industry is already reducing resource consumption and improving carbon footprints.

However, circular economy principles take this a step further by focusing on designing products, processes and business models that support the reuse of materials and parts – it not only cuts emissions but also drives long-term efficiency in the auto repair sector, notes researcher Dr Tracey Dodd, of the Adelaide Business School.

“In the automotive industry, a circular economy entails designing, producing and using vehicles to minimise waste and maximise resource efficiency,” Dodd says.

“This involves practices such as remanufacturing, recycling and reusing materials and components to extend the lifecycle of vehicles.”

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Additionally, Dodd advocates for the use of sustainable materials, technologies and services such as car-sharing and leasing to enhance resource efficiency and reduce waste.

Sustainable approach pays off

For CARe Auto, an innovative collision repair group, these sustainability principles are already embedded within their business model. Launched in 2022, CARe Auto has embraced a digital-first strategy to streamline operations, increase efficiency and reduce emissions.

CARe Auto’s executive team (left to right): CEO Leigh Bryan, and co-founders Jim Vais and Norman Moss. The company prides itself on its “customer-first, digital-led, people-enabled repair process”. CARe Auto

Through its proprietary software, RPS, vehicles are triaged digitally, and parts are ordered in advance, optimising the supply chain and reducing turnaround times. As a result, the business has not only seen marked growth that has brought recognition in the AFR’s annual Fast Starters list but also a reduction in emissions, says co-founder and director Jim Vais.

“There was a gap in the market in terms of trying to digitise how we interact with customers, insurers and suppliers,” he says. “We developed a digital solution to bring the three parties together to streamline the process.

“Customers play a role in providing images and video footage of the condition of the vehicle, enabling the technician to digitally triage the damage and determine what parts are needed, then procure them cost effectively prior to the vehicle arriving at the repair centre.”

The next digital transformation will track energy consumption and help the business reduce emissions, Vais adds.

“One of the major energy consumers is the curing process for paint, which involves substantial gas usage,” he explains. “We are looking at new technology that could reduce curing times, significantly cutting gas usage by up to seven to 18 per cent.”

To date, the business has focused on organic customer solution-based growth, serviced by a rapidly expanding network of 14 repair centres across the east coast of Australia, employing 300-plus team members. A further two sites are scheduled to open early in 2025.

The business expects to double its revenues in FY2025 through further network expansion and expanded insurance/fleet service offerings, while poised to expand overseas in FY2026.

Leading the planned expansion is recently appointed CEO Leigh Bryan, who says the business is incorporating environmentally friendly practices such as water-based, fast-curing paint and energy-efficient equipment.

“For example, the use of water-based and UV cured paints can save over 65 per cent in energy consumption compared to traditional methods,” Bryan says. “Additionally, we have invested in a process that contributes to a 9 per cent reduction in waste and CO2 emissions, helping to make the overall process more sustainable.”

“Digitisation has given us a window to better source recycled alternative parts in line with what’s acceptable to the insurer and the customer. That’s not unique to CARe, but the window of time in which we can do it, is,” he adds.

A ‘digital-led, people-enabled’ approach

The digital platform has revolutionised the process, says co-founder and director Norman Moss.

“The main point of difference is not that we collect pictures and videos; it’s what we do with that information to drive an outcome for the customer and insurer,” he says.

“This is one of the few industries where planning was almost impossible because you couldn’t see what was coming in. But now, by looking ahead at damage capture images of work coming into the shop, management can schedule accordingly.

“Importantly, because it’s been designed by Jim Vais, a 40-year-industry veteran, it is based on what actually works. As a result, all stakeholders are seeing benefits: more organised workflows, lower costs and, ultimately, better outcomes for our team on site and our customers.”

The business is also looking ahead for solutions to current labour shortages in the industry, says Bryan. Part of that is offering an accelerated traineeship program alongside its apprenticeship scheme, empowering people to focus on specific tasks and roles, which can assist aspects of the broader technician role.

“We are finding ways to attract and upskill people with a passion for cars and innovation, to be the future labour force of our industry, and we are leveraging a sustainability-focused, digital-led and people-enabled approach to make that happen.”

To learn more, visit careauto.com.au/

Sponsored by CARe Auto

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    Original URL: https://www.afr.com/technology/digitisation-drives-more-sustainable-and-efficient-car-repair-practices-20241120-p5ks7k