The cost of paint and materials (P&M) for collision repair has been increasing significantly in recent years. According to industry data, P&M costs have increased by nearly 44% between 2017 and 2022, while P&M reimbursements have only gone up by 18.5% in the same period. This means that collision repair shops are losing money on repairs due to rising costs.
Causes of the increase:
+Disruptions from earlier years have mostly subsided, but lingering effects and ongoing inflation contribute to price hikes.
+The cost of materials used in paint production is rising.
+Both paint labor rates and overall repair labor costs are increasing due to inflation and the demand for skilled workers.
Impact and solutions:
+Shops using the traditional “multiplier method” for P&M invoicing may struggle to keep up with rising costs.
+More shops are adopting material calculators that account for specific paint needs, potentially reflecting higher costs more accurately.
+Collision repair shops can explore invoicing software that integrates with paint company pricing scales and allows for specific paint cost calculations.
As a result of these factors, collision repair shops are having to raise their prices in order to stay afloat. This is putting a strain on insurers and consumers alike.
Read more: https://www.repairerdrivennews.com/2024/05/06/paint-and-materials-costs-up-another-24-since-q1-2022/
#collisionrepair #costs #inflation #paintprices #bodyshop #repairindustry
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