Friday, 07 January 2022 10:47

ABAT’s Consumer Complaint Form Drive is Making a Difference

Written by Autobody News Staff


...other of like kind and quality or is not sufficient enough to make the repairs necessary for the manufacturer to honor the vehicle warranty.”


While ABAT is attempting to work with TDI to address the issues Texas auto body shops are dealing with, Richards said member shops dispute the process and data used to determine the market rate, and asserts it should exclude any contracted rates.


He recommends shops access www.laborratehero.com, which shows the retail door rate shops have reported by ZIP code.


Mike Anderson, president of Collision Advice and an ABAT member, said staffing is the top issue he observes from shops across the country.


“Until our industry can pay a more competitive wage, we’re not going to fix that staffing problem,” he said.


Anderson said at the end of the day, the industry is never going to hire the brightest and best and compete with other industries until we can pay people a better wage.


“This can only be accomplished by capturing more not-included operations, seeing an increase in labor rates, or a combination of both,” he said.


Tim Ronak, senior services consultant for AkzoNobel, said part of the challenge is the compensation received on an hourly basis.


“We’ve been watching individuals use parts margins to subsidize what they are paying their production staff,” he said. “A significant number of shops are making less than 50% gross margin on labor. When that happens, the technicians are making proportionately more money on labor sales than the shops are. The shop assumes...