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43% bodyshops don’t use green parts due to insurer and policyholder “resistance”

green vehicle partsAccording to the latest ABP Club State of the Industry Report, 57% bodyshops currently use green parts, but 43% don’t due to “resistance” from work providers and policyholders.

The 2019 report, which is sponsored by Mirka UK, provides research and analysis of the UK Body Repair Industry. ABP Club conducted a detailed online survey of bodyshops and found that 57% bodyshops said they do fit recycled (green or second-hand) parts.

Bodyshops who said they do fit green parts, said they do so:

  • To avoid a total loss at request of policyholder – 84%
  • When the policyholder asks me to – 68%
  • When the new part is no longer available – 63%
  • When the work provider asks me to – 60%
  • To avoid a total loss at request of work provider – 50%
  • When the new part is not available in a reasonable time scale – 46%

Bodyshops who do not fit green parts said they don’t because of:

  • Resistance from the policyholder – 45%
  • Resistance from the work provider – 41%
  • Poor availability – 33%
  • Poor quality – 23%
  • Delivery delays – 13%

second hand vehicle partsHOWEVER, with ‘bottom line discounts’ given as the most significant threat to business (40% said this was a huge threat – greater than low labour rates, shortage of skilled labour and unsustainable profit margins), and many of the verbatim comments from repairers citing serious issues with average parts discounts, could 2020 could be the year of change for green parts in accident repair?

“The labour rate isn’t our biggest challenge,” according to one bodyshop, “it’s the discount we are giving on parts that is the problem.”

 

“Average parts discount has reduced from 28% to 19% with as low as 5% on captive parts,” said another repairer, “yet we still have to give almost 16% rebate back to the work providers who are not interested in helping.”

 

Another survey respondent claimed manufacturer parts prices were “driving bad behaviour”.

Check out the results, in full, in the NEW State of the Industry Report 2019, sponsored by Mikra, in print and online click here. 

This is the ninth annual UK Body Repair Industry report. It includes new data from over 200 bodyshops who took part in the annual, detailed online survey.

For further information about the Auto Body Professionals Club, visit www.abpclub.co.uk 

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