Yoswick also offered some insights from his latest survey regarding repair and supplement approval times: “From about 500 shops who responded to a CRASH Network survey in June, the average time those shops spend waiting for a supplement approval hit another record high in 2023, approaching times that are nearly double what they were pre-pandemic. Shops say they are waiting 4.9 days on average for an insurer to complete an in-shop inspection to approve repairs. Prior to 2020, that time was just 2.9 days. Wait times for a remote desk review---or ‘virtual inspections’---are averaging 4.3 days, almost two full days longer than the 2.4-day average reported in 2018.”
According to the CRASH Network results, shops cite approval times---along with some continued parts availability issues---as contributing to having more jobs at some stage in process, a factor that generally cuts into overall productivity.
Among the shops who shared data in CRASH Network’s June survey, the average shop had work in process (WIP) equal to 66% of their typical monthly volume. That’s down from the fourth quarter of 2022 when shops’ WIP was averaging 78% of their monthly volume. But the average WIP is still higher than it was a year earlier when shops’ WIP averaged 59% of their typical monthly volume.
Total Loss
For rentals associated with total loss claims, LOR was 16.5 days, a 0.8-day decrease over Q2 2022.
While Alaska had the highest results at 25.3 days (+5.1 days), the next highest was Kentucky at 20.3 days, followed by Montana at 20.0 days.
D.C. had the lowest total loss LOR at 13.5 days, followed by Nebraska at 14.5 days.
Total Loss LOR varied greatly; excluding Alaska, the highest increases were Wyoming at +2.2 days and Maine at +2.1 days. Twenty states (less Aalaska) had an increase of 0.9-days on average. However, 29 states plus D.C. had an average decrease of 1.6 days, with 17 states plus D.C. down an average of 2.2 days.
Summary
As the numbers show, the trend of "predictable" seasonal LOR continues. The LOR decrease is positive, and many repairers are finding ways to anticipate and operate in the new normal. However, challenging market conditions remain, and overall LOR remains significantly higher than it was pre-pandemic.
Enterprise is committed to partnering with insurers, repairers and suppliers on all of the issues impacting repair times and LOR. Through foundational support provided by the Enterprise Holdings Foundation, Enterprise is spearheading the Collision Engineering Program, designed to attract and develop entry-level talent to fill essential roles within the collision repair industry.
Enterprise is thrilled to expand its longtime partnership with Ford Motor Company, through its philanthropic arm, the Ford Fund, to expand the program and help address this ongoing industry challenge. For more information, visit www.beacollisionengineer.com.
Source: Enterprise
Abby Andrews