News: CCAR’s HazmatU Now Available in Spanish
New index will help both collision repairers and insurers make periodic 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.
NABR announced the creation of its new Collision Economic Index (CEI) and calculator, to help both collision repairers and insurers make periodic 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 defray the increasing costs of collision repairers and to maintain and sustain repairer profit margins, improving the economic health of the industry.
Similar to the Consumer Price Index (CPI), which tracks changes in price over time for a market basket of consumer goods and services, NABR’s Collision Economic Index (CEI) tracks changes in price over time for key elements of repairers’ business such as paint and materials, general business costs such as health care, energy and insurance, as well as overall price inflation.
“Collision repairers are continually faced with a variety of cost increases such as paint, materials, health care, insurance and much more,” said Sam Valenzuela, president of NABR. “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.”
Burl Richards, owner of Burl’s Collision Center in Henderson, Texas, and president of the Auto Body Association of Texas, added, “NABR’s new Collision Economic Index is exactly what this industry needs. 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.”
For collision repairers, the Collision Economic Index report and calculator will be included with their subscription to NABR’s Variable Rate System (VRS), while 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, and expects to publish the first CEI report in the fourth quarter.