Costs for collision repair have risen an eye-popping 44.7% since 2019, Doug Orr says data from AdjustRite shows. AdjustRite is PPG's estimating software for commercial vehicles.
"The good news is that in the 2023 data, it appears it has flattened out," Orr says.
What's causing it? Everything.
Orr showed AdjustRite data indicated increases across the board: 42% in parts, 21% in labor, 55% in sublet, 41% in paint materials and 56% in body supplies.
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"The one that surprised me was labor," Orr says. "But all of these factors weigh in to that 44% increase in severity."
Volume is also on upswing since the pandemic, Orr notes, saying "it's trending in the right direction." U.S. estimates per user are finally recovering in 2023, Orr showed, with increases across the country except for int he West.
Orr also broke down estimates according to the software's data as well as impact points input into the system. AdjustRite shows estimates are usually 50% parts and 40-45% labor, with the rest materials and other work.
"Based on the point of impact, this changes dramatically for the style of unit," he says, which can indicate an opportunity for training or technology to mitigate damage from collisions.
Most truck impacts occur at the front, Orr showed, while coaches and RVs tend to experience more rear collisions. One attendee attributed a higher incidence of right-side impacts on mirrors and driver training. Orr agreed.
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"We can possibly identify the new technology to reduce right-side impacts," Orr says. Of course, that technology tends to cost more, and can increase the price tag when a vehicle equipped with advanced systems is involved in a collision.
Orr says AdjustRite's data hasn't gotten to the level of new technologies adding to severity, but once such features become more standardized, it would be possible. Also, what helps refine AdjustRite's data even more, Orr says, is for shop employees to fill out all the possible information in the software.
"If you want this data to be as accurate as possible, have your team fill all of this information out," he says.
