This week in the news associated with the auto body industry, we will take a look at why the average period of time which a consumer has a rental vehicle is at its highest in five years, along with why the estimated time for a repair is not in line with insurer expectations. Check back every week for new updates about what is going on in the auto body industry around the state, country and world!
Average Rental Time Continues to Increase
In an industry trends report issued by Mitchell on Tuesday, it was reveled that the average industry length of rental continued its trend to become longer and longer. One of the subjects that the information was released on was for collision losses, which was responsible for the longest rental periods of all incidents listed in the report. On average, quarter 1 of this year saw an average length of rental (or LOR) at 11.6 days, up from 11 days during the same period in time last year.
The reason this statistic is so important is that it is generally a good indicator of what the current cycle time is from the actual incident to the time the car is returned to the owner. Also included in this report was the fact that the country’s four largest insurance carriers continue to gain ground in the automotive insurance industry. The largest, according to this report, was State Farm – which dominated with 18.52% of the current market share. It should be of no surprise that GEICO, Allstate and Progressive were also included amongst the top 4 car insurance companies in the nation.
Average Repair Time
Another study was released this week, but this time from the Society of Collision Repair Specialists or (SCRS). This study revealed that the estimated time for repair by collision specialists did not live up to expectations of insurance carriers. Data from CCC Information Services Inc. and Mitchell International was analyzed to compare with data on average length of rental from Hertz and Enterprise. From this, experts were able to conclude that the time spent on a damaged vehicle did not meet their standard of 3 hours per day (or 10 days to finish a 30 hour job). Instead, it showed that only 1.5 hours per day were spent on repairing the damaged vehicle, thus taking twice as long to complete the repair project. This report revealed a huge disparity between the expectations of repair time to the reality of how long repairs were actually taking.
At Sanford Paint and Body and Martin’s Collision Center, we always give a realistic timeframe in which we expect to complete the repairs to your vehicle. This helps to eliminate unnecessary waste and additional days that a rental vehicle is required. Our personal relationship with the local Hertz and Enterprise has been ongoing since we opened for business and we have established a great line of communication with both of them. This is one of the many reasons why Sanford Paint and Body or Martin’s Collision Center should always be your first call when it comes to auto body repair work in the Orlando or Sanford, Florida area!
For years there has been a major issue facing the auto body and auto repair industry. On May 14th 2014, Steve Marks from I-CAR is set to address this issue and lay out the framework to a viable industry solution at the Great Designs in Steel Conference. The issue at hand is that there is a large disconnect between the collision repair industry technicians and repair shops with the OEMs (Original Equipment Manufacturers) in the automotive industry. The goal with the ideas being presented is to improve awareness of the challenges that repair workers are facing, aim at reducing gaps in repair information and also to help improve the standardization of accessibility to the information required to preform proper repairs.
I-CAR has and will continue to operate as the essential ‘linking pin’ between the manufacturer and the repair specialist. The idea of the ‘linking pin’ is part of four key elements in the I-CAR Reparability Technical Support program, which has been created in order to provide improved technical support to the repair industry as a whole, with the ultimate benefit being passed down to the consumer in the end. At the conference next month, Steve Marks will outline key changes they will be making in their process to ensure that as technology continues push the steel industry ahead, there is adequate support systems available to the repair specialist.
At Sanford Paint and Body and Martin’s Collision Center, we make sure that we are always on top of the leading and emerging technologies when it comes to car manufacturing and development. We want to make sure that we stay ahead of the curve as it pertains to what types of repairs we may be making in the future to these newly designed automobiles. In order to not be caught off guard by procedures or processes involved in auto body repair, we have maintained an I-CAR Gold membership for as long as we have been in operation. This ensures that we have the latest in techniques and technology when it comes to repairing any type of vehicle.
1Collision Network to Host Educational Events
1Collision Network, a Chicago based paint and body shop, stated this past Tuesday that they were going to hosting their annual Thriving in a Consolidating Marketplace educational workshop twice this year in June. The educational workshop is geared toward independent and dealer shops alike, with strategies, technology and tactics developed to help these smaller shops compete with the larger, nationally branded chains. Anyone who attends one of the two workshops will also be able to accumulate 14 hours worth of credits toward the Automotive Management Institute’s Accredited Automotive Manager designation.
In the past several weeks there has been a lot going on in the world of auto body collision repair and auto body painting. We would like to take some time today in order to address some of the more influential stories and discuss the impacts that the industry may feel in the coming weeks and months.
Just yesterday, April 22nd, the National Auto Body Council announced that Dan Young, VP of insurance at CARSTAR, would join the ranks of the Board of Directors at the NABC. Detailed in his duties as a board member, Dan will head up NABC’s Distracted Driving Initiative. This program is directed at educating young people about the dangers of distracted and inattentive driving, something that has been on the increase in recent years. The statistics associated with these types of related accidents has become something of a rising concern in regards to those involved in serious accidents when texting and driving. He will be advising and guiding this initiative to ensure that the word gets out about the extreme dangers associated with this type of driving.
Dan has served CARSTAR for 10 years as the Senior Vice President of insurance relations. His responsibilities include overseeing regional and national insurance partnerships, nation wide insurance program initiatives, and data analysis associated with claims management. His years of experience will likely help him be successful at starting, growing and managing the new Distracted Driving Initiative.
OSHA Targeting Isocyanate Exposure
In other news surrounding the industry the Occupational Safety and Health Administration (OSHA), is cracking down on body shops across the nation for exposing their employees to isocyanate. Isocyanates are highly reactive chemicals found in most clear coating material that is put on cars after a new paint job has been completed. During the annual Collision Industry Conference earlier this month, a representative from GMG Envirosafe warned attendees of the coming crack down due to the incredible statistics behind this chemical. It was found that employees of auto body collision centers, particularly those that do auto body painting, have an incredible 80 times more risk of occupational asthma from isocyanates than regular industrial workers do – thus confirming why OSHA will be targeting this auto body industry particularly.
At Martin’s Collision Center and Sanford Paint and Body, we ensure that all of our employees are more than adequately protected against such exposure. We have top of the line ventilation systems as well as safety masks that everyone is required to wear to ensure no exposures to these chemicals. We take our employee safety as our number one priority and want to ensure a safe and healthy working environment for all of our auto body collision experts. Come visit us today at one of our two locations in Sanford, FL for a free estimate!
We are proud to announce the launch of our new website! After over a month of development we have finally worked out all of the bugs and are ready to go live. Feel free to browse around and take a look at what we have come up with. We welcome comments and suggestions – please send an e-mail to one of the addresses on the home page if you would like to give us feedback!
Heidi & Dave