Parts Prices Up 7 Percent
Nov. 1, LAS VEGAS—Parts prices are up roughly 7 percent year-to-date, CCC Senior Director Susanna Gotsch said Monday at the MSO Symposium at Mandalay Bay.
It’s the largest price increase CCC has ever seen, and most of it has occurred in Q3 alone, Gotsch said.
As part of the MSO Symposium, a panel of several top executives from some of the largest MSOs in the country discussed the parts issues their companies are facing.
Shawn Hezar, chief client officer for Caliber Collision Centers, revealed its shops have between $50 million to $60 million in repairs currently sitting in its lots waiting for parts.
“It’s evolving and it’s pretty painful,” Hezar said.
Darrell Amberson, president of operations for Minnesota-based LaMettry’s Collision, said his shop’s work in process is currently 10-20 percent higher than before COVID.
Hezar along with Mark Miller, vice president for OEM and quality for the Boyd Group, both admitted their service-level agreements have been impacted and they’ve seen their SLAs increase with their parts vendors. And while some insurers have been accommodating to those increases, several have not.
“There are some carriers that have dug their heels in and aren’t going to change,” said Marty Evans, chief operating officer for Certified Collision Group, adding that its members have seen customer satisfaction scores go down since the start of the shortage.
That has led to tighter margins. The panel of four all agreed the parts shortage has been felt in all aspects. It isn’t just certain parts and it applies to OEM and aftermarket parts. It also extends to tools and equipment, like scan tools, windshields, and other parts.