CCC reported that repairable auto vehicle claims were down 21.3 % in 2021 — and 26 % if comprehensive claims were discarded.
The second quarter proved the worst for auto body shops, with all repairable claims down 35 % from 2021. Claims proceeded to hover at around 20 percent throughout the year: The 3rd quarter represented a 20.2 percent decline over 2021, and the fourth quarter finished down 19.7 percent.
December 2021 did slightly better than the fourth quarter as a whole, down 19.5 percent from 2021. Idaho was really up over December 2021.
“Non-comprehensive repairable appraisal counts however reversed course again in Nov'20 and Dec'20, as the CDC recommended people forgo holiday travel, and a third wave of the virus drove up new COVID-19 cases, hospitalizations, and fatalities,” CCC wrote. “Even numerous winter storms with a lot of ice didn't lift accident counts in December, because so many drivers were from the roads altogether, working remote and doing much of their holiday shopping on the web.”
Auto body shops along with other smaller businesses who saw revenue decline 25 % any quarter in 2021 are eligible for up to $2 million in Paycheck Protection Program “second draw” loans. The little Business Administration opened that program Wednesday to community banking institutions and promises to take applications from patrons of other lenders soon.
CCC director and analyst Susanna Gotsch in a Jan. 8 video offered some optimism: “In 2021, repairers should see repair volumes up from 2021,” she said. However, she anticipated the metric would still represent a decline from 2021 tallies.
“Repairer will need to remain nimble,” seeking new causes of revenue, she said.
Gotsch suggested scanning, reprogramming and calibrations could be potential income streams, though repairers would need to comprehend the requirements for a person vehicle.
Another option may be to pursue more retail work, which a minimum of have the virtue of being stable.
CCC data posted this month by Gotsch shows customer-pay repair orders appearing to fluctuate less dramatically than insurer-pay ROs in 2021. Maaco has reported significant success by concentrating on the previous market throughout the pandemic.
Gotsch cited a Nov. 9, 2021, Romans Group virtual MSO Symposium estimate projecting about 11 percent of the collision industry’s revenue is consumer-paid. Romans Group founder Vincent Romans throughout the event also described the collision repair industry a $38.3 billion concern. Theoretically, that’d exercise to some more than $4.2 billion customer-pay market.
Romans also estimated Nov. 9, 2021, that the average shop did about $1.2 million in 2021. A 21.3 percent decline would put the shop down $255,600 this year.
