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Ed Attanasio

Ed Attanasio is an automotive journalist based in San Francisco. Ed enjoys sports of all kinds and is a part time stand-up comedian.

 

He can be reached at era39@aol.com.

Tuesday, 29 March 2022 14:28

Supply Chain Issues, Repair Complexity Major Concerns for Collision Repair Industry in 2022

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Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions forecasts that supply chain problems, inflation and repair complexity will continue to be major obstacles for collision repairers in 2022. Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions forecasts that supply chain problems, inflation and repair complexity will continue to be major obstacles for collision repairers in 2022.

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Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs.

Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times?

 

Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry.

 

Gotsch set the table for this year’s report before diving into the numbers.

 

“It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote.

 

Obstacles created by supply chain issues are a concern to every body shop in the world right now.

 

“Despite new variants and ongoing debates on how best to balance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods," she said. "As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them.

 

"Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are having to re-examine and restructure their supply chains.”

 

The supply versus demand imbalance has also impacted U.S. inflation in a huge way, which hit a 40-year high in December 2021, Gotsch said.

 

“Labor shortages have also driven up wages across nearly all industries, with Conference Board data pointing to higher wages in 2022," she said. "The disruption experienced over the last two years has accelerated...


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