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A Year In Review: Theft, supplier strikes and repair cost top collision trends for 2023, says CCC Industry Solutions

Toronto, Ontario — According to CCC Intelligent Solutions, the 2023 collision repair industry in North America was marked by complex shifts and challenges related to the rise in vehicle theft, automotive strikes and the vehicle repair cost bubble.

In its yearly report, CCC Intelligent Solutions noted that the United States saw a 10 percent increase from 2022 in claims resulting from attempted thefts or other forms of automotive vandalism. Overall, the country saw one million vehicles stolen and this marks the highest auto theft since 2008 as well as a year-over-increase of 7 percent.

Canada has also seen a continued rise in automotive theft with Équité Association, revealing that 2022 marked the first time in history that Canada’s insurers paid over $1 billion in claims for stolen vehicles. This year, the Ontario government has planned to spend $18 million over the coming three years to help prevent theft statistics from rising.

Based on Q3 data from CCC Intelligent Solutions, domestic pickups have the highest rates of total loss due to theft.

Another factor affecting the collision repair industry in 2023 is the impact of strikes on suppliers.

CCC Intelligent Solutions’ report outlined how “the repercussions of the recent UAW strike also rippled through the industry, underlining the critical role of suppliers and emphasizing the need for a more resilient supply chain.”

Based on historical experience, the strike could result in increased cycle times over the next few months as well as the potential for non-OEM part price increases.

In total, the strikes resulted in US$10.4 billion in economic losses and suppliers accounted for almost a third of these losses.

Finally, CCC Intelligent Solutions’ report identifies the vehicle repair cost bubble as the third main factor affecting the collision repair industry in 2023.

According to the report, in the auto collision segment, total cost of repairs experienced subtle fluctuations influenced by factors like vehicle age mix and economic variables.

The increased age in the vehicle pool temporarily contained the total cost of repairs for the year and average new vehicle prices remained around $48,000.

CCC Intelligent Solutions’ report ended with the assertion that “acknowledging the challenges posed by theft, supply chain disruptions and shifting market dynamics is the first step toward devising proactive strategies [for the future]. By staying vigilant and agile, the industry can harness insights to fortify its foundations, ensuring a resilient and prosperous future.”
To read CCC Intelligent Solutions’ report in greater detail, click here.

 

 

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