July 24, 2019—The Alliance of Automotive Service Providers of Massachusetts (AASP-MA) recently announced plans for the first official labor rate survey to be performed by an independent third party in that state.
AASP-MA contracted with National Auto Body Research (NABR) in an effort to independently collect information and data regarding the posted labor rates through a market study. The Variable Rate System (VRS) survey was established to measure the current range of market prices for shop labor and material rates in the body shop industry, taking into account factors such as shop location, training, equipment and certifications.
Based on a Mitchell Industry Trends Report from 2018, Massachusetts currently ranks last in terms of average labor reimbursement for collision repair in the U.S., at $38.28.
According to Jack Lamborghini, the chairman of AASP-MA’s labor rate committee, the organization is hoping to get more than 300 shops, statewide, to complete the survey. The organization feels that sample size would provide statistical relevance. Lamborghini said AASP-MA asks that shop operators take the survey and simply list their posted labor rate. Shops wishing to participate in the survey can contact AASP-MA at [email protected].
Lamborghini feels that Massachusetts’ average labor reimbursement is unjust, given the relatively high cost of living ratings for that state.
“The labor rate in Massachusetts is the lowest in the U.S.,” Lamborghini recently told FenderBender. “And the cost of living there is like second highest in the country. So, it has become next to impossible … to have a viable business.”
