Eagan auto shop runs on recession, boosted efficiency
Superior Service Center has thrived in hard times
by Jessica Harper
Dakota County Tribune
Superior Service Center owner Dan Sjolseth has been able to boost business by taking advantage of the poor economy and improving efficiency at his Eagan auto body and repair shop. - Photo by Jessica Harper
The stalled economy and improved efficiency have driven one local auto mechanic into good times.
“Business is growing at a rapid pace on the mechanical side as people keep their cars longer,” said Dan Sjolseth, owner of Superior Service Center in Eagan.
Superior Service Center’s body shop generated 10 percent more revenue in 2010 than in the previous year, while its repair business grew 30 percent, Sjolseth said.
Total revenue has risen as well, to $4 million annually, which has increased profit margins, he said.
As businesses across the nation faced tough layoffs, Sjolseth was able to hire six new employees last year, bringing his total to 30 employees.
Sjolseth credits much of this growth to the slow economy and improved efficiency at the shop.
“If we can do more without increasing our square footage, it’s a big gain,” he said.
Four years ago, Sjolseth implemented an organizational system in which every tool and piece of equipment is placed in a designated spot, mapped, and labeled.
Equipment that is unused or rarely used is stored or placed into a recycling or refuse bin.
Superior Service Center has been able to hire six new employees thanks to increased revenue and profit margins in the past few years. The body shop generated 10 percent more in revenue in 2010, while the repair shop brought in 30 percent more than in the previous year. - Photo by Jessica Harper
Sjolseth also implemented a detailed system for assessing damage, disassembling vehicles, inventorying parts and filing records.
The setup, borrowed from the Lean Manufacturing principles developed by automaker Toyota, has enabled Superior Service Center to shorten its average collision repair time from 10 business days to 3.2.
Insurance companies often reward this efficiency through bonuses, Sjolseth said.
Sjolseth heard about the system from a vendor who implemented the system at his shop.
The greatest challenge to implementing the changes was getting everyone on board, Sjolseth said.
But once everyone joined the effort, it began to pay off.
Several industry leaders have visited Superior Service Center to learn about the process. The business has also been featured in Enterprise Minnesota and industry magazines.
In his blood
The auto body industry has been Sjolseth’s passion for most of his life — it’s in his blood. As a teen, he helped his father at the family’s service station.
“When I started in the ’70s, I was very passionate about cars,” he said. “Now it’s not so much about the cars — it’s the people.”
Sjolseth worked at several auto body shops and dealerships for nearly 10 years before founding Superior Service Center, an auto body shop, out of his Richfield home in 1982.
He moved the shop two years later to a 6,000-square-foot building in Eagan’s Cedarvale neighborhood. At the time, he also had a repair shop at another location.
In 2004, the city announced its redevelopment plans, which would not include Sjolseth’s shop.
“I knew it would be a challenge, but it would end up being best for everyone,” he said.
Four years later, he moved to his present location at 3750 Pilot Knob Road in Eagan, where he has a 20,000-square-foot building to house both his auto body and repair shops.
Sjolseth describes having both shops together in one building as a “marriage in heaven.”
The Great Recession dampened the body shop’s business slightly in 2008, but the repair side continued to grow, Sjolseth said.
“As the economy picks up, we’ve already seen a big difference in the body shop,” Sjolseth said.
Jessica Harper is at
jessica.harper@ecm-inc.com.
