GCIA Executive Director Discusses Results of Labor Rate Survey - BodyShop Business

GCIA Executive Director Discusses Results of Labor Rate Survey

At the Collision Industry Conference (CIC) meeting in July, Georgia Collision Industry Association (GCIA) Executive Director Howard Batchelor discussed the results of a labor rate survey of collision repair facilities in the metropolitan Atlanta area.

The survey was the association’s fourth annual one, and Batchelor said he believed the results he received were the best yet due in part to a change in strategy. In past years, the survey had focused on shop size, number of stalls, number of techs, etc. This year’s survey focused on labor rates and categorized shops solely by their annual gross sales: $2 million plus, $1-$2 million, $500,000-$1 million and $500,000 or less.

Shops were specifically asked for their non-DRP or posted rate – “the rate you would charge a cash, walk-in customer,” said Batchelor. A postcard with a link to GCIA’s website where the survey could be filled out was mailed to over 650 shops. Approximately 137 surveys were filled out online, and 154 were received through the efforts of a call center.

For the over $2 million category, the online survey results led to an hourly labor rate of $43.11, while the call center’s results led to $42.58.

“As to why there was a difference, we think some of the phone calls maybe weren’t getting to the right people, like perhaps an estimator or receptionist, whereas those who filled out the survey online were actual shop managers,” Batchelor said.

The purpose of the survey was to get an accurate non-DRP average labor rate and present the findings to the Georgia Insurance Commission and also to area claims managers.

“We found that labor rates increased 3.15 percent this year, which doesn’t even cover the cost of living increases,” said Batchelor. “The letter we’re drafting right now and plan on sending to all claims managers in the metropolitan Atlanta area will validate the results we came up with. We have four years’ worth of data now, and these surveys were conducted by an unbiased third party.”

The letter, Batchelor said, emphasizes that the findings do not reflect a contract rate between a shop and an insurer but the posted rate that the shop would charge a customer whose insurance company has no relationship with the shop.

The GCIA met with the five candidates currently running for the position of insurance commissioner in March to educate them on the issues facing collision repairers. Last June, GCIA met with them again to discuss the possibility of setting up a committee to survey labor rates in the state of Georgia, and according to Batchelor, the majority of the candidates were agreeable to that. Batchelor said the GCIA will follow up with that request in November.

“Is this a problem that can be solved legislatively? We’ll have to wait and see,” said Batchelor. “With the previous insurance commissioner, we didn’t have much success.”   


More information: 

Comprehensive labor rate survey results

GCIA

 

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.