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Friday, 28 January 2022 13:40

CIECAST Inspects Trends Affecting Collision Repair in 2022 and Beyond

Written by Autobody News Staff

 

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CIECA hosted its latest CIECAST webinar Jan. 27, “2022 and the New Norm in the Collision Industry,” featuring Susanna Gotsch, senior director, industry analyst for CCC Intelligent Solutions.

The one-hour broadcast, available above and on CIECA’s YouTube channel for replay, looked at how claim counts have been influenced by the COVID-19 pandemic, supply chain issues, microchip shortages and labor and wage pressures.

 

Gotsch said claim counts slowly recovered in 2021---they were 10% higher than 2020, but 2020’s count was 20% lower than 2019’s, before pandemic-related shutdowns. Further recovery in claim frequency is expected in 2022.

 

The number of miles being driven is now only down less than 5% as of November, but where and when people are driving remains different, Gotsch said. Remote work and reduced congestions is expected to continue through at least the first half of 2022.

 

“We will see how much a hybrid workforce changes things going forward,” Gotsch said.

 

Reduced congestion is also leading to people driving at faster speeds and many more reports of reckless driving, Gotsch said, which means of the claims that are made, many more are non-drivable or a total loss.

 

Repairs that can be made are costing more, and not just because of the severity of the damage, but also because of parts and microchip supply issues.

 

Gotsch said there will also be more pressure on labor and wage costs in 2022, which will also continue to drive up the cost of repairs.

 

The presentation also looked at vehicle prices, which are still high for both new and used vehicles.