CIC Day Two: Vehicle Repair Costs on the Rise

April 13, 2018
Susanna Gotsch of CCC said the industry is seeing an overall longer cycle time as vehicle technology advances and repair costs grow. Vehicle repair costs are projected to increase 2 to 3 percent annually.

Westminster, Colo., April 13, 2018—The Collision Industry Conference (CIC) wrapped up its spring meeting with a busy day that included updates from the definitions committee, the governmental committee, and the parts and materials committee.

One of the highlights was a presentation from Susanna Gotsch, an industry analyst and director for CCC Information Services, who shared data from the 2018 “Crash Course” Report (which she previously broke down in an interview with FenderBender earlier this month).

The industry is seeing an overall longer cycle time as vehicle technology advances and repair costs grow. For a repair that costs closer to $20,000, a shop could be seeing as many as 50 days for the repair.

Gotsch said 50 percent of total loss claims are for vehicles 15 years or older.

In the future, vehicle repair costs will increase 2 to 3 percent annually. The number will be determined by how many newer model vehicles make it into the mix versus older model vehicles that have a higher repair cost.

Outside of Gotsch’s presentation, the definitions committee launched a CIC Wiki page for a glossary of industry terms. The page allows people to submit additions, deletions and revisions to any of the terms or definitions.

Sixty-eight percent of CIC attendees voted for the committee to review the submissions and update the body quarterly.

And to end the day, John Oleachea, compliance assistance specialist for OSHA, said  the most common citations are respiratory protection citations.

He said that other common hazards include chemical usage, personal protective equipment and paint, and solvent storage.

In June, OSHA will be rolling out a new standard for silica usage.

Forty-five percent of CIC attendees have had an OSHA inspection. 56 percent of attendees have not had an inspection.

Only 38 percent of attendees said they have had a lift inspection by a qualified inspector within the last year.

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