Supply Chain Issues and Repair Complexity Major Concerns in 2022 by Ed Attanasio
Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs. Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times? Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/ Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry. Gotsch set the table for this year’s report before diving into the
numbers. “It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote.
ance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods,” she said. “As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them. “Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are having to re-examine Director/Industry Analyst Susanna Gotsch from CCC and restructure their supply Intelligent Solutions forecasts that supply chain problems, chains.” inflation and repair complexity will continue to be major The supply versus deobstacles for collision repairers in 2022 mand imbalance has also Obstacles created by supply impacted U.S. inflation in a huge chain issues are a concern to every way, which hit a 40-year high in December 2021, Gotsch said. body shop in the world right now. “Labor shortages have also “Despite new variants and ongoing debates on how best to bal- driven up wages across nearly all
industries, with Conference Board data pointing to higher wages in 2022,” she said. “The disruption experienced over the last two years has accelerated the pace of innovation across all industries, leading to the transformation of how business is conducted as technologies such as artificial intelligence (AI), telematics, mobile and cloud are being adopted to help inform and speed processes, and combat challenges stemming from labor shortages, new consumer expectations and other market dynamics.” The automotive repair industry is still struggling to find employees, Gotsch reported. “Representatives from Universal Technical Institute predict a wave of retiring baby boomers will create 100,000 auto technician job openings over the next decade or so, with the Bureau of Labor Statistics projecting a 4% decline in employment in the overall auto technician field through 2029,” she said. “Finding technicians with the right skillsets is also a growing challenge as
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