Steering, Labor Rates Top Industry Concerns for '09, Nebraska Study Says - BodyShop Business

Steering, Labor Rates Top Industry Concerns for ’09, Nebraska Study Says

The Nebraska Autobody Association (NABA) recently released results of a survey gauging the most critical issues facing collision repairers in 2009. The survey, taken during the last quarter of 2008, asked repairers to name those issues that would be most crucial in the new year, and 85 percent rated steering as the top concern.

NABA’s survey also reflected the national changes occurring in the design, manufacture and repair of motor vehicles. Changes in both technology and repair procedures rated relatively evenly: 74 percent of repairers said technology would be a concern in 2009, and 73 percent identified changes in repair procedures as a significant issue.

The practice of third-party desk reviews ranked among the top five concerns with 69 percent of survey respondents, followed closely by labor rates that are not independently verified or validated (68 percent).

Other top-10 issues included DRP concessions demanded by insurers, which 61 percent of repairers identified as problematic, followed by state legislative issues (60 percent), quality of recycled parts (58 percent) and the refusal by insurers/adjusters to adhere to P-pages (57 percent).

The following are the top 17 industry concerns as found by the NABA survey:

• Steering of claimants by insurers – 86 percent
• Changing automotive technology – 74 percent
• Changing repair procedures – 73 percent
• Third-party desk reviews – 69 percent
• Labor rates that aren’t independently verified or validated – 68 percent
• DRP concessions demanded by insurers – 61 percent
• State legislative issues – 60 percent
• Quality of recycled parts – 58 percent
• Refusal by insurers/adjusters to adhere to P-pages – 57 percent
• Enforcement of Nebraska unfair claims settlement laws – 57 percent
• Database times that are too low – 55 percent  
• Quality of aftermarket parts – 54 percent
• Rising costs of automotive refinishes – 54 percent
• Adjusters/field staff lacking experience and/or understanding of collision repair – 51 percent
• Employee (tech) retention – 51 percent
• Fear of insurer reprisals – 50 percent
• Refusal by insurers to acknowledge OEM repair specifications – 50 percent

NABA’s survey is part of an ongoing effort by the organization to identify and document a variety of collision industry issues. For more information, visit www.nebraskaautobody.com.

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