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2021 Year-end Trends for Commercial Collision Claims

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The following data provides benchmarking insights and trends compiled from PPG’s ADJUSTRITE® Commercial Estimating system for the 4th quarter, 2021. This data reflects information compiled from both insurance and shop estimates from the United States and Canada. For all metrics, this information excludes known total losses, estimates with only one line item, and estimates <$100.
Severity for 2021 averaged $9,965—a 13.3% increase over 2020.  Severity for the 4th quarter experienced the largest increase, up 20.6% relative to Q4 2020. 

When looking at Sale Mix Percent for the past four years, the only year-over-year trend is that Sublet percent is increasing. Comparing 2021 to 2020, Parts and Sublet percentages increased, while Labor and Paint Materials decreased. All Sales Mix dollars categories saw increases in 2021.  The annual average for Parts dollars had the highest increase of 14.6%, while the lowest increase was for Paint Materials dollars at 10.1%.  

Table 1:  Sales Mix Percent for 2018 – 2021

In Table 2, the 2021 Labor Mix Percent shows an increase in Mechanical over 2020, while Body Percent continued to slightly decline.

Looking at Table 3, all Average Labor Dollar categories show an increase in 2021 relative to 2020, with the exception of Frame.  Body and Paint had the largest increases of 11.2% and 8.6, respectively.

Table 3: Average Labor Dollars for 2018 – 2021

Please note that a correction to Sublet was made for trends reported Q3 2021 and has been applied to all years. 

Average Dollars for Sublet, Paint Materials and Shop Supplies show a year-over-year increase. Compared to 2020, Shop Supplies had the highest percent increase of 14.8%. 

 

Thank you for your continued interest in following the latest trends for commercial collision claims.

 

About PPG ADJUSTRITE®:

The PPG AdjustRite Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. This system is a web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the PPG AdjustRite Commercial Estimating System, visit www.adjustrite.com .

Latest 2021 Trends for Commercial Collision Claims

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February 7, 2022 – The following data provides benchmarking insights and trends compiled from our PPG ADJUSTRITE® Commercial Estimating system for the 3rd quarter, 2021.  This data reflects information compiled from both insurance and shop estimates from the United States and Canada. For all metrics, the information excludes known total losses, estimates with only one line item and estimates <$100. 

Severity for the 3rd Quarter averaged $10,172—a 13.5% increase over the previous quarter.  

This average is 16.4% higher than Q3, 2020 and 22.2% higher than Q3, 2019. Severity data for October and November 2021 indicates that Q4 severity average dollars should climb even higher.

All Sales Mix dollars for Q3 saw double digit increases over Q3 2020.  Parts dollars saw the highest increase of 20%.

Table 1: Sales Mix Percent for Quarter 3 of 2019, 2020, & 2021

The Mechanical and Frame Q3 Labor Mix Percent increased compared to the same quarter in 2020. Mechanical Q3 Labor Mix Percent trended up, while Body and Paint Q3 Labor Mix Percent continued its downward trend over the last 3 years.

Table 2:  Labor Mix Percent for Quarter 3 of 2019, 2020, & 2021

Table 3:  Average Labor Dollars for Quarter 3 of 2019, 2020, & 2021

All average dollar categories in Q3’s Labor Mix showed increases compared to same quarter last year. Body and Miscellaneous had the largest increases of 11.4% and 16.4% respectively.

We revisited our previously reported value of approximately $700 for Average Sublet Dollars and discovered a calculation error within the aggregated data set.

Our updated table now reflects year over year increases for Sublet, Paint Materials and Shop Supplies and  double digit growth compared to 2019.

Thank you for your continued interest in the industry metrics provided.  

About PPG AdjustRite:
The PPG AdjustRite Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. This system is a web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the PPG AdjustRite Commercial Estimating System, visit www.adjustrite.com .

April Conference to Focus on EVs, ADAS, and Calibrations for the Heavy- & Medium-duty Collision Repair Industry

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Katy, Texas, February 16, 2022 – Electric vehicles, alternatively fueled vehicles, and those equipped with advanced driver assistance systems (ADAS) are posing new challenges in the collision repair industry. The challenges extend beyond repair and include concerns with safety and proper handling. Collision repair shop owners and managers, particularly those dealing with Class 5-8 vehicles, are finding their technicians and insurance partners with more questions than answers. Most are not clear or are challenged with the required repair procedures, estimating accuracy, needs for scanning, diagnostics, calibrations, and more.

With vehicle production, sales, and on-the-road appearances of these types of vehicles increasing daily, accidents involving these vehicles are beginning to ramp up. This year’s HD Repair Forum will focus on the impact of new vehicle technology and prepare the heavy- & medium-duty collision repair industry for the ever increasing number of electrified and ADAS equipped vehicles on the road today. 

Taking the main stage in April is a well-known list of companies, organizations, and industry experts who will help the industry with these challenges. Organizations represented include: PACCAR, Rivian, I-CAR, the RV Industry Association, NGVAmerica (Natural Gas Vehicles for America), TEXA and many others.

Attendees of the two-day conference will gain valuable insight on the latest trends with electric, LNG and CNG vehicles, ADAS, repair safety, best practices relative to alternative fuel vehicles and new vehicle technologies, as well as provided with staffing solutions. For more information on the educational sessions, sign-up for our e-communications and visit the HD Repair Forum website to review the event agenda

The HD Repair Forum is the only event dedicated to serving collision repairers and their industry partners in the heavy- & medium-duty markets via education, information, and networking opportunities. The HD Repair Forum is scheduled for April 5th-6th at The historic Hilton in Fort Worth, TexasEarly bird registration ends this Friday and sponsorship opportunities are filling up. Companies interested in having a presence at the HD Repair Forum are encouraged to book now as sponsorships are limited. More information can be found on the sponsorship page of the website or by contacting us at 281-819-2332. 

Latest Quarterly Trends for Commercial Collision Claims

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The following provides benchmarking insights and trends compiled from our PPG ADJUSTRITE® Commercial Estimating system. This data reflects information compiled from both insurance and shop estimates from the United States and Canada. For all metrics, the information excludes known total losses.

Severity for the 2nd Quarter averaged $8,644— a 7% decline over the previous quarter. However, this number is 1.8% higher than Q2, 2020 and 6.2% higher than Q2, 2019.
July 2021’s severity data indicates that Q3’s severity average dollars will climb back closer to Q4 2020 numbers.
The Sales Mix for Q2 saw a slight percentage increase in labor dollars over 2020, primarily due to a decrease in parts dollars. Sublet dollars also increased slightly.

Table 1. Sales Mix Percent for Quarter 2 of 2019, 2020, & 2021
Body and Paint categories in Q2’s Labor Mix showed slight increases compared to same quarter last year. Mechanical labor percentage experienced its first decline in a year, but still remained higher than Q2 2019.
Table 2. Labor Mix Percent for Quarter 2 of 2019, 2020, & 2021
Over the past four quarters, none of the average labor costs indicate clear trends, up or down. Given the decline in Q2’s average severity dollars, all average labor costs, with the exception of Mechanical Labor, declined from Q1. The average Miscellaneous Labor cost experienced the largest dollar decline. Compared to same quarter last year, Miscellaneous, Paint, and Body Labor costs increased, while Frame and Mechanical Labor costs showed a decrease.

Table 3. Average Labor Dollars for Quarter 2 of 2019, 2020, & 2021

 

 

 

Compared to last quarter, decreased severity in Q2 unavoidably led to average dollar decreases in Sublet, Paint Materials, and Shop Supplies.

Both Sublet and Paint Materials were down 5%, with Shop Supplies down 3%. Yet, Q2 2021’s average dollars for Sublet, Paint Materials, and Shop Supplies remained higher compared to Q2 2019 and 2020, with the latter showing the highest % increase of 9.0%.

Compared to Q2 2020, average Total Supplement Dollars were down 12.3%.

 

 

 

Thank you for your continued interest in the industry metrics provided.

About PPG AdjustRite:
The PPG AdjustRite Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. The system is a web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the PPG AdjustRite Commercial Estimating System, visit www.adjustrite.com .

Latest Quarterly Trends for Commercial Collision Claims

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The following provides benchmarking insights and trends compiled from our ADJUSTRITE® Commercial Estimating system. The data reflects information compiled from both insurance and shop estimates from the United States and Canada. For all metrics, the information excludes known total losses.

Severity over time graph

In Q1 2021, severity averaged 8.1% higher than Q1 2020 and numbered approximately $9,100, similar to the previous quarter. However, taking into consideration seasonal severity, the current trend indicates an increase from quarter to quarter.

Q1 Sales Mix Percentage Graph

Sales mix in Q1 shifted to parts from labor, sublet, and paint materials.  The largest negative swing occurred in sublet, a trend that began in Q2 of 2020 when the sublet percentage was 7.3%. 

 

Table 1 – Sales Mix Percent for Q1 of 2019, 2020, & 2021

 

 

 


Labor mix in Q1 further indicates a growing shift towards mechanical work, a trend noticed since Q2 2020.  Paint experienced the largest negative swing in the labor mix for Q1.

Table 2 –  Labor Mix Percent for Q1 of 2019, 2020, & 2021

 

 

 


Average labor dollars for body and paint in the first quarter saw increases of 7.2% and 4.7%, compared to Q1 2020.  Average labor dollars in the frame, mechanical and miscellaneous categories all experienced declines.

 

 

 

 


Table 3 – Average Labor Dollars for Q1 of 2019, 2020, & 2021

 

 

 

 

Compared to last year’s first quarter, Q1 2021 saw increases in average dollars per estimate for sublet, paint materials, and shop supplies, with the latter experiencing the largest increase of 9.4%.  Sublet in Q1 2021 showed its first percentage increase since Q4 2019.

Thank you for your continued interest in studying the latest industry metrics for commercial collision claims.

About AdjustRite:
The AdjustRite® Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. The system is a Web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the AdjustRite Commercial Estimating System, visit www.adjustrite.com.

Addressing HD Wheel Masking & Painting at the Shop Level – Issues and Remedies

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When painting a truck, bus, or trailer, repairers shouldn’t forget to paint the wheels. If the vehicle needs paint, chances are the wheels do too. While wheel preparation for the painting process is similar to the preparations for the cab, body, and chassis, there is one unique, taxing issue in wheel preparation: wheel masking.

The Issue
Traditional wheel masking is very time consuming, as one has to manually tape around each tire, hub, and lug nut. In the past, there were no “wheel masking templates” on the market, so repairers would have to spend time trying to fabricate them. Usually this has been done by cutting cardboard, which is flat and never fits, or by using excessive amounts of tape and paper.

The Remedy
A wheel masking system of pre-formed, reusable plastic maskers that cuts time and labor, and provides a professional finish with minimal clean-up now exists. This solution is known as “Tire Mask”. These wheel masking templates are available in many popular fleet wheel sizes (17.5″, 19.5″, 22.5″, 24.5″) and contour to each tire, wheel + rim component. In addition, Tire Mask users can trim or use extra tape for a custom fit. Each masker is reusable up to 20 times, and “Hubb Capps” last forever. The use of Tire Masks can reduce masking and clean-up by approximately 90%. Freshly painted wheels can drastically improve fleet appearances, while increasing resale value and decreasing DOT fines associated with neglect.

Useful Tips for the Road Ahead
When painting wheels remember, “The better the prep, the better the finish”.
Remove rust and be sure your lugs are properly torqued before painting, as this helps to avoid fresh paint in between the mating surfaces.
Follow FMCSA (DOT) Statute § 393.205 regarding wheels
Follow OSHA guidelines for painting, and the 3.5 mil paint thickness as recommended by the TMC.
As always, safety first.

To ensure the wheel masking process goes smoothly, TM Products, LLC. created a demonstration video for users to view.
For more information on Tire Mask you may visit, www.tiremask.com

A Look at Commercial Collision Claim Trends

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To aid those weathering the uncertainties of how 2021 will impact the commercial collision industry, we at PPG are sharing some benchmarking insights and trends, compiled from our ADJUSTRITE ® Commercial Estimating system, from 2018 thru 2020— including both insurance and shop estimates from the United States and Canada. For all metrics, except severity, the information excludes known total losses.

Severity trends reflect an industry experiencing increased complexity or
year-over-year increases.
In contrast to the approximate 4.7% increase in claim severity from 2018 to 2019, excluding total losses, there was a 2.7% increase from 2019 to 2020. The average claim severity in 2020 was $8,620.
(For all estimates including total losses, there was a 10.4% increase in severity in 2020, compared to 2019, with an average claim severity of $10,288.)

Total parts’ dollars also showed year-over-year increases. For 2018 to 2019, the average total parts’ dollars increased 3.3%. There was a 2.9% increase for 2019 to 2020.

Average total parts ‘dollars per estimate in 2020 was approximately $4,120. Total labor dollars also saw increases year-over-year.

 

 

 

From 2018 to 2019, total labor dollars increased 6.3%, and there was a 3.7% increase in 2020, over 2019. Table 1 provides a 3-year view of sales mix percentages.


Table 1:
Sales Mix Percent for CY 2018 – CY 2020

 

 

With labor dollar increases outpacing others, it is critical to review the labor mix percentages over the past three years, which averaged 61.8% body, 3.5% frame, 10.7% mechanical, 0.2% miscellaneous and 23.8% paint.

The 3-year trend saw a move of less paint and body to more mechanical and miscellaneous labor percentages. Table 2 provides a view of each year.

Table 2: Labor Mix Percent for CY 2018 —CY 2020

94.0% of estimates with body labor. The 3-year average percentages of estimates for each labor type were as follows:

    • 7.9% with frame labor
    • 23.9% with mechanical labor
    • 1.2% with miscellaneous labor
    • 71.0% with paint labor.

From 2019 to 2020, there were increases in estimates with frame and mechanical labor, and a decline in estimates with paint, body, and miscellaneous labor. Table 3 provides a view of each year.

Table 3: Percent of Estimates with Each Labor Type for CY 2018—CY 2020
Table 4:
Average Labor Dollars for CY 2018—CY 2020
A review of the 3-year trend for average labor dollars shows that all labor types experienced a year over year increase except frame and mechanical labor dollars. Frame labor dollars were flat from 2018 to 2019, however were down 5.4% from in 2020. Mechanical labor dollars increased in 2019 over the previous year, however remained flat in 2020. Miscellaneous labor dollars saw a double- digit increase of 11.5% from 2019 to 2020. Table 4 provides a view of each year.


In the parts count category, the 3-year average for number of parts per estimate is 23, with OEM parts used 95.5% of the time. When comparing average parts dollars for 2020, the OEM average part cost was $247—recycled parts was $1,433, and aftermarket new was $335. The split between repair and replace labor dollars in 2019 and 2020 amounted to 42% for repair and 58% for replace. “Front” was the most often flagged primary impact area in 2020, followed by “Right Front” then “Left Front.”

The 3-year average for sublet dollars per estimate is $711, with the average down 1.5% in 2020. From 2018 to 2020, paint and material dollars showed year over year increases of 6.6% and 5.2% respectively. Average paint and material dollars per estimate in 2020 numbered $547. Average shop supplies per estimate in 2020 was $168, an increase of 6.2% over 2019.There was a larger increase in shop supplies in 2019, over 2018.

Since 2018, the total supplement amount per estimate has continued to rise, increasing by 8.2% in 2019 and 34.8% in 2020. The average total supplement cost was approximately $3,800 in 2020 The percent of estimates with supplements increased from 25.9% in2018 to almost 28% in 2019. Last year saw that percentage drop to 24.2%, with 71.9% of those estimates having only have one supplement. Supplement dollars represented 33 – 34% of severity in 2018 and 2019, while 2020 saw that number increase to 44%.

 

Thank you for allowing us to provide you with insights compiled from our AdjustRite Commercial Estimating system. All of us at PPG Industries wish you the best of success in 2021! If you have any questions regarding our commercial estimating system, feel free to contact Ryan Woolfenden, PPG marketing manager, commercial programs, at woolfenden@ppg.com.

About AdjustRite:
The AdjustRite ® Commercial Estimating system is an industry-leading platform in the medium-to-heavy-duty equipment repair and claims industry. The system is a Web-based, fully mobile application, driven by a comprehensive database of commercial vehicles and equipment including: tractors, trailers, trucks, boxes, motor coaches, RVs, and buses. To learn more about the AdjustRite Commercial Estimating System, visit www.adjustrite.com .

SCA Appraisal Sending Free PPE and Speeding Appraiser Pay in Advance of COVID-19 Spikes

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Burbank, CA – In anticipation of an accelerating spike in COVID-19 cases and in the interest of safety for its nearly 800 franchise and network appraisers, SCA appraisal has launched a second round of up to $25,000 of complimentary COVID-19 PPE directly to field appraisers as an effort to mitigate potential exposure to COVID-19 and mitigate any possible exposure to clients.  Additionally, SCA is accelerating pay to appraisers and increasing the frequency of payments to help assist with any financial challenges associated with potential shutdowns.

“As a society and as businesses, we learned a lot about the impact of CVID-19 spikes and related shutdowns throughout 2020.  SCA wants to ensure we are doing all we can to promote safety and assist with financial stability in the event the increased COVID-19 cases being reported nationally translate into further business disruption.”, says Timothy Davis, Jr., president of SCA Appraisal.  “Nothing is more important to us here at SCA than our people, our franchise network and our clients’ vehicle owners.  The PPE and accelerated compensation is our small way of cementing the commitment to the industry that SCA has proudly-served for over 40 years.”

“For our franchise and network partners, getting them paid is more important now than ever and SCA has committed resources to expediting these payments.”, states Monica Warner, CFO.  “We know times may have been tight for some in the industry and we are proud to be able to extend payments faster than ever.”

Additional information regarding this program can be obtained by visiting SCA’s dedicated website at:  http://sca.claims/ppe

For inquiries:
Phil Langley
plangley@sca-appraisal.com / 214-914-0187

SCA Appraisal Launches Dedicated Department of Insurance (“DOI”) Re-inspection Unit: Names Jose Hermida Unit Leader

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Burbank, CA – In response to the growing demand of insurance carrier clients for Department of Insurance “(DOI”) re-inspections and regulatory compliance, SCA Appraisal has launched a newly-formed DOI Customer Success Unit.  Most SCA clients know Jose Hermida as he has been servicing SCA clients for over 20 years and is a client favorite. Jose will be leading the new DOI- CSU program.

“The regulatory environment in some states is becoming ever more complex and compliance is critical for our clients.  The establishment of a dedicated unit ensures that compliance.” says Tim Davis, President of SCA Appraisal.  “Being able to meet the unique needs of our clients in specifically-regulated markets with the DOI program further illustrates our evolution from an independent appraisal company to an integrated appraisal company.”

Clients will have three program options within the DOI program.  Specific vehicles can be assigned for re-inspection.  A selection of vehicles can be made by SCA based on geography and claim count.  Or, clients can opt for a fully-managed program that uses rental car logs to identify re-inspection opportunities in order to meet compliance.  In all cases SCA provides the necessary re-inspections and supplemental reporting.

In business since 1979, with franchise and supplier resources in all 50 states, SCA is a leading provider of private passenger auto, specialty, heavy equipment and financial services appraisals.  For more information, or to request a demonstration, please contact ClientServices@sca-appraisal.com.

SCA Appraisal Launches Customized Client Care Program

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SCA Appraisal Launches Customized Client Care:  Appoints Monica Diaz Senior Director of Customer Success, Lucano Figueroa, Yesenia Barreto & Amye Chow Customer Success Managers

Burbank, CA – To meet the evolving needs of its customers across a variety of industries, SCA Appraisal has implemented a Customer Success division and has re-allocated and added resources to specifically support clients across various markets. 

Monica Diaz has been appointed Senior Director of Customer Success and will be accountable for end-to-end delivery to clients across three unique markets: insurance, third-party administrators, and financial services/government.

“Our industry has experienced a lot of change over the 41 years we have been in business.  However, perhaps the most profound change has been our clients’ requests for company-specific requirements that leverage their own unique brands and identities” states Tim Davis, Jr., President of SCA Appraisal. “The IA space has long had a reputation for a one-size fits all approach, that is not acceptable at SCA. We are investing in our clients’ success and when they are successful, we are successful.”

Lucano Figueroa, an 18-year veteran of SCA will lead the Financial Services/Government group.  Yesenia Barreto, brings her 13 years with SCA to lead the Third-Party Administrators group.  Amye Chow, with SCA since 2011 leads the Insurance group. 

“All aspects of a claim will be handled by a vertically-integrated team that is familiar with our clients’ business objectives and processes.” says Monica Diaz.  “We know we are an extension of our clients’ claims resources and we are aligned accordingly. Customers will see industry-leading service.”

In business since 1979, with franchise and supplier resources in all 50 states, SCA is a leading provider of private passenger auto, specialty, heavy equipment and financial services appraisals.  For more information, or to request a demonstration, please contact ClientServices@sca-appraisal.com