Exploring the Hidden Costs of Understaffing in Collision Repair Shops

Skilled technician using Bolt's auto repair technician platform to find flexible work

In the United States, an estimated 6 million vehicle crashes occur every year. Some are minor fender benders. Others cause major damage that keeps drivers off the road for days or weeks. When someone’s car is out of commission, they want it fixed, and fast. But between lingering parts shortages and long repair queues, that’s getting harder to deliver.

According to industry data, the average auto insurance repair cycle time reached 23.1 days in 2023, an increase of 6.2 days from 2022 and more than double the turnaround time in 2021. That’s three weeks without a vehicle, and not every insurance policy covers a loaner for that long. The frustration builds for customers and for shop owners alike. And one of the most overlooked reasons behind the delays? Staffing.

The Real Price of Too Few Hands on Deck

When a collision repair center doesn’t have enough technicians, estimators, or support staff, the understaffing costs go beyond lost productivity. You start to see ripple effects across every corner of the business:

  • Missed revenue opportunities: Vehicles waiting in the lot don’t make money. Without enough people to process estimates, order parts, and complete repairs, throughput drops, and so does profit.
  • Customer dissatisfaction: Delayed turnaround times lead to unhappy customers, negative reviews, and lost future business.
  • Employee burnout: The remaining staff often pick up the slack. That can lead to rushed work, mistakes, and turnover, creating a costly cycle that’s tough to break.
  • Declining operational efficiency: Bottlenecks develop when one department, like parts ordering or painting, can’t keep up. Each delay compounds the next, dragging down the shop’s operational efficiency.

Understaffing doesn’t just slow down repairs. It chips away at quality, morale, and reputation.

The Other Side: Overstaffing Comes With Its Own Risks

While the pain of being short-handed is easy to spot, overstaffing can be just as damaging. Vehicle accidents are unpredictable, and repair demand fluctuates. Bringing on more people than needed might seem like a proactive move, but it adds financial pressure during slower months.

Payroll becomes one of the largest expenses, and when technicians don’t have consistent work, morale can slip. Skilled workers might leave for busier shops, leaving management scrambling once volume picks back up. Finding the balance is the real challenge for collision repair shops that want to stay profitable year-round.

Striking the Right Balance

The best-run collision centers plan staffing based on historical data, seasonal trends, and local traffic patterns. For example, more collisions tend to happen during winter months in snowy regions or during heavy travel seasons. By anticipating those spikes and using flexible staffing strategies, like part-time help or short-term contracts, shops can better manage labor levels without overcommitting.

This approach allows shops to maintain operational efficiency even during unpredictable periods. And when the inevitable surge of repair jobs arrives after a storm or icy weekend, they’re ready to take it on.

How Understaffing Hurts Long-Term Performance

Beyond daily delays, chronic understaffing can quietly erode the foundation of a business:

  • Reduced training opportunities: When the team is stretched thin, there’s little time for mentorship or skill development.
  • Lower quality control: Overworked technicians might cut corners, resulting in rework or warranty claims.
  • Declining safety standards: A rushed environment increases the risk of accidents in the shop itself.
  • Loss of reputation: Word spreads fast. Customers notice when timelines slip or quality dips, and referrals suffer.

These hidden understaffing costs can be more damaging than temporary dips in workflow. A shop’s reputation, safety record, and employee retention are all at stake.

Benefits for Shops and Technicians

Finding the right staffing balance benefits everyone. For collision repair shops, it means fewer delays, happier customers, and a steadier flow of revenue. It keeps operations running efficiently without overextending payroll or burning out the team.

For collision repair technicians, it means consistent hours, manageable workloads, and a work environment where they can focus on doing quality work rather than racing the clock. In turn, this supports better morale, stronger performance, and long-term loyalty.

At Bolt, we understand that no two repair centers are alike. That’s why we connect shops with skilled technicians ready to step in when demand surges, and help techs find stable, rewarding work when they’re needed most. 

Because keeping cars and people moving starts with having the right team in place.Request a demo today to get started.