Because of the diversity of opinions between repairers and insurers two separate written survey forms were sent out independently. This survey was sent out to 126 collision repair businesses and 24 insurance companies. We received back 32 completed body shop surveys representing a 25% return, and 11 insurance company surveys representing a 60% return.
The respondents where asked to rate issues by:
1. Priority--in what order should the CIC address the issues? (1-10, 1 = highest, 10 = lowest)
2. Importance--what do you feel is the most important to the industry? (1 = very important, 2 =
important, 3 = not important)
Collision Repairer Survey
The report from these surveys will list in order of priority and include the importance rating. The
following are the results for the Collision Repair Surveys:
| Priority | Avg. Priority Rating | Avg. Importance Rating |
|
|---|---|---|---|
| 1 | Data Base Times Shrinking | 1.5 | 1.2 or 2nd |
| 2 | Declining Margins | 1.8 | 1.1 or 1st |
| 3 | Suppressed Labor Rate | 2.1 | 1.4 or 3rd |
| 4a | Shrinking Labor Pool | 2.7 | 1.6 or 4th |
| 4b | Lack of Computer Standards | 2.7 | 1.8 or 6th |
| 5 | Not enough profit to pay and attract good people | 3.0 | 1.7 or 5th |
| 6 | Transfer of Administrative Work Costs with Direct Repair Programs | 3.3 | 1.7 or 5th |
When asked which employees are the hardest to find in the shrinking labor pool, the respondents
rated from one to four (1 = hardest, 4 = easiest)
| Classification | Average Difficulty Rating |
|---|---|
| Body Technicians | 1.4 |
| Paint Technicians | 2.3 |
| Office Staff | 2.5 |
| Detailers | 3.3 |
When asked what would they do with additional profits, the respondents replied:
| Percentage | Number | |
|---|---|---|
| Reinvest in the business | 44% | 14 |
| Attract better people | 31% | 10 |
| Reinvest in Equipment | 19% | 6 |
| Reinvest in Training | 19% | 6 |
| Better pay and benefits | 13% | 4 |
| Pay Down Debt | 6% | 2 |
| Advertise more | 3% | 1 |
When asked for the Primary reason for the decline in margins, the respondents replied:
| Percentage | Number | |
|---|---|---|
| Shrinking Data Base Times | 31% | 10 |
| Higher Overhead | 22% | 7 |
| Funny Times, Funny Rates | 22% | 7 |
| Increase in Parts-to-Labor % | 19% | 6 |
| DRP Programs | 13% | 4 |
| Insurer Control of Information Data Providers | 13% | 4 |
| Fewer Line Items Allowed by Insurer | 9% | 3 |
| Increased Competition | 6% | 2 |
| Small Margin on Non-OE parts | 6% | 2 |
| Lower Gross Profit | 3% | 1 |
| Lower Paint Material Margins | 3% | 1 |
| Movement towards real time | 3% | 1 |
When asked what other issues are of concern and CIC should address, the respondents replied:
| Percentage | Number | |
|---|---|---|
| Realistic Labor Rate | 9% | 3 |
| Insurers Over Controlling | 6% | 2 |
| Pressure from Insurers for Body Shops to Absorb More Costs | 6% | 2 |
| Eliminate DRP and Steering | 6% | 2 |
| Cost of Electronic Commerce | 3% | 1 |
| Underlap by Insurers | 3% | 1 |
| Industry Consolidation | 3% | 1 |
| Repair Quality Standard | 3% | 1 |
Insurer Survey
The report from these surveys will list in order of priority and include the importance rating. The following are the results for the Insurer Surveys:
| Priority | Avg. Priority Rating | Avg. Importance Rating | |
|---|---|---|---|
| 1 | Lack of Trust Between Insurers and Repairers | 2.1 | 1.2 or 1st |
| 2 | Claims Process Cycle Time | 2.2 | 1.5 or 2nd |
| 3 | Air Bags (totaling cars, new vs. used) | 2.3 | 1.5 or 3rd |
| 4 | Title Branding Legislation | 3.1 | 1.5 or 4th |
| 5 | Confusion over CAPA Parts with repairers; lack of desire to use other parts options besides OEM | 4.3 | 2.3 or 5th |
| 6 | Diminishing Value Costs | 4.9 | 2.6 or 6th |
When asked what other issues are of concern and CIC should address, the respondents replied:
| Wasted time, money and friction between insurers and repairers |
| A way to compensate all shops based on the differences in their experience, equipment, and quality of repair, and not paying all shops the same rate |
| Fraud in all industry segments |
| New approach to estimating paint materials |