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Wednesday, 19 June 2013 20:51

GCIA 2013 Survey Results Shows Need for Higher Rates to Meet Labor & Material Costs

The Georgia Collision Industry Association (GCIA) recently completed its 7th Annual Labor & Materials Rate Survey for metro Atlanta and Georgia. This year, 305 shops participated in eight regions.

Results were tabulated by region and by annual gross sales. For example, 199 shops who grossed $1 million or less responded with a rate of $43.27 for body labor, $43.28 for paint labor, $62.65 for frame labor and $29.61 for P&M.

In Region 7, which includes the cities of Macon and Warner Robbins, 101 shops responded their body labor rates were $42.92 with paint labor at $42.88 and frame labor at $64.88.

“I think this year’s survey continues to show the need for higher rates in the market to keep up with the rising expense of labor and material,” said GCIA Executive Director Howard Batchelor. “As I have expressed in the past, the survey is a tool that shops can use to negotiate the market rate. If a shop has DRPs, they can also use the survey to review their current rates with insurers and chose to participate or not. Because of the Most Favorite Nation program, if a shop offers a rate to another insurer, then they must offer to them. The one thing that shops can do is use the survey to validate why they are charging their rate. No other insurer performs a survey so how do they determine what the PCP is? Our survey determines the PCP.”

For complete survey results, go to gcia.org/about/labor-rate-survey/.

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