NABR Creates Collision Economic Index
Sept. 15, 2016—National AutoBody Research (NABR) announced Thursday the creation of its new Collision Economic Index (CEI) and calculator, to help collision repairers and insurers make adjustments to the labor and paint-and-materials rates they charge or pay, based on rising costs of key components of the collision repair business.
These price increases help to pay the increasing costs of collision repairers and to maintain profit margins, improving industry economic health.
"Collision repairers are continually faced with a variety of cost increases such as paint, materials, health care, insurance, and much more," Sam Valenzuela, president of NABR, said. "Yet, we've found that many repairers need help in translating these increasing costs to increases in their labor and paint [and] materials rates. Just like other businesses who increase their prices from time to time based on costs, profit goals, or other business factors, collision repairers too need to make price adjustments to offset cost increases and maintain profit margins."
"NABR's new Collision Economic Index is exactly what this industry needs," said Burl Richards, owner of Burl's Collision Center in Henderson, Texas, and president of the Auto Body Association of Texas. "This will enable repairers to quickly and easily make necessary price adjustments to maintain and sustain their profits, like any other business would do, and base those price increases on sound reasoning, robust data, and good business principles."
The Collision Economic Index report and calculator will be included with a subscription to NABR's Variable Rate System (VRS). Non-VRS-subscribers may purchase the report and calculator separately.
NABR will formally announce the new CEI at the upcoming Texas Auto Body Trade Show in Richardson, Texas. The first CEI report is expected to be published in the fourth quarter.