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CIECA announced early bird registration is now open for its annual conference, CONNEX 2021.

The in-person event is being held Sept. 14-16 in Charlotte, NC. In addition to a line-up of top industry speakers, there will be networking opportunities, a vehicle gifting by the National Auto Body Council (NABC) as part of its Recycled Rides program and a tour of the NASCAR Hall of Fame.

All industry stakeholders, including CIECA members and non-members, are invited to attend to hear about current and future industry challenges and opportunities; gain timely, relevant business and technical knowledge; and take part in learning opportunities for all industry segments.

For more information about CIECA CONNEX, including sponsorship and speaking opportunities, visit https://cieca. zohobackstage.com/CONNEX2021#/?lang=en Discounted room rates at the Hilton Charlotte University Place are available now.

Source: CIECA others took advantage of local opportunities to continue growing their footprint.

In short, the additional competition for quality MSOs has kept buying interest and valuations high despite the pandemic.

People ask us what we are paying most attention to in the industry

1. OE requirements and certifications. OEMs are increasingly recognizing that access to technologically complex parts and certifications gives them more ways to improve their OE parts sales and margins. A $4,500 headlight with a patented sensor included is a not-so-subtle way to insure parts profitability.

2. Consolidation―discussed above. We expect the acceleration of consolidation to continue.

3. Diversification. Caliber is now emphasizing its diversification into glass, service and ADAS work. LKQ has added ADAS services to its offerings and is buying up smaller ADAS firms. LKQ now claims with the acquisition of the Elitek subsidiary, it’s the largest U.S. provider. Many regional operators are creating their own ADAS companies as well.

4. Changes in DRP networks. Painful reductions in the State Farm and USAA DRPs, GEICO shifts and Progressive expansions have really impacted both large and smaller MSOs. Replacing State Farm volumes with smaller DRPs cannot make up the difference.

5. Changes in insurance market share. When one considers the remarkable changes among auto insurers over the last 10 years, the most surprising and far-reaching impact is how the direct marketers―GEICO and Progressive―have grown their total market share. These two companies have grown from 16% to 27% of all premiums written in the U.S. in a decade. The top 10 insurers have grown to almost 75% of all vehicles insured. More and more clout is moving to fewer and fewer insurers.

What we expect to see for the rest of the year

Miles driven: We think travel by car will come roaring back. People are so anxious to move around the country. They still can’t travel to Canada or Mexico very easily so expect summer travel in the U.S. to be up above 2019 levels.

Many more transactions: With two active national consolidators, five super-regional MSOs and at least six private equity firms still looking for platforms, we expect to see many more transactions in 2021 and 2022. Much of the volume will be driven by the expansion plans of these acquirers. Some will be driven by potential tax rate increases both at the national and the state level. Many will be driven by retirements of operators. And sadly, many will be driven by the exits of struggling businesses.

We thank Focus Advisors for reprint permission.

www.autobodynews.com

Rivian Receives Property Tax Abatement after Exceeding Expectations in Normal, IL

by Maria Merano, Teslarati

The Normal, IL, Town Council approved a property tax abatement for Rivian, noting the company exceeded expectations. In 2016, the town council approved an economic incentive agreement with Rivian Automotive relating to the company’s location and operation of an automobile manufacturing facility, formerly owned by Mitsubishi. As per the agreement, the Town of Normal—and other affected taxing bodies—agreed to abate Rivian’s property taxes for five years, provided that the EV automaker met specific criteria. Rivian was given the following benchmarks for reductions in its 2020 property taxes, paid in 2021: • Invest at least $32 million in project expenses • Employ 300 full-time employees with an average salary equal to greater than the average weekly salary in McLean County as measured by the Bureau of Labor Statistics of the U.S. Department of Labor

According to the Economic Development Council’s Patrick Hoban, Rivian met 2020’s benchmarks and the following year’s abatement criteria. “The original plan, as you know, was to create about 500 jobs, and I think they’re about at 1,300,” Hoban noted. Zach Dietmeier, Rivian’s senior manager of plant communications in Normal, not so subtly hinted the EV automaker actually employed more than 1,300 people thus far. He said Rivian surpassed 1,400 hires as of May 3, noting the companyadds 50 to 80 employees per week at its current pace. Dietmeier also said Rivian has contributed 1,800 construction jobs at its peak to Normal, separate from the jobs directly linked to the company. Councilwoman Karyn Smith added Rivian exceeded its expected investment of $32 million by 2020 10 times over. As of May 3, Rivian has invested $300 million in the town of Normal. The town council seemed pleased with Rivian’s progress and adherence to the abatement agreement. Following the unanimous approval for the property tax abatement, council members approved Rivian’s plans toexpand its manufacturing factory.

We thank Teslarati for reprint permission.

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