Peering through the Glass – New England Automotive Report’s Survey Results

by Alana Quartuccio

Fighting with insurers, insufficient reimbursement rates, intimidating technology – all things a body shop owner in Massachusetts has to contend with. It can be isolating, leading one to think they are a lone soldier in combat. But that’s not the case at all. No two shops are exactly the same, but there are many shared struggles and concerns. 

The New England Automotive Report 2024 Industry Survey gave shops the chance to speak out about what concerns them most and peek into the window of the collision shops down the street, three towns over or in another part of the state to see what they have to contend with. 

Check out the following pages to get a feel for the state of the industry here in the Commonwealth by reading this year’s survey results. A big thank you to all the shops who took the time to participate in this survey. We hope that you find value and insight from this information. 

How long have you been in business?

1-5 years: 3%

6-10 years: 3%

More than 10 years: 94%

Are you on a referral or program?

Referral: 8%

Program: 3%

Both: 8%

No: 81%

If you selected “yes” to being on a referral, how many referrals are you on?

1-5: 57% 

6-10: 42%

More than 10: 0%

If you selected “yes” to being on a program, how many programs are you on?

1-5: 100%

6-10: 0%

More than 10: 0%

It appears that more and more body shops are severing their ties to insurance companies, according to this year’s survey results, with 81 percent reporting they are not involved with any referral or programs. When this survey debuted four years ago, that number was only at 52 percent. 

This increase illustrates the changes taking place in the Commonwealth as body shop professionals have been vocalizing the benefits of working independently and taking the time to educate themselves and consumers as they “break free” from contracts. 

How many full-time employees do you have, including yourself? 

1-5: 42%

6-10: 29%

11-20: 18%

More than 20: 11%

How many part-time employees do you have? 

1-5: 92%

6-10: 3%

11-20: 3%

More than 20: 2%

What is the age of your oldest employee?

30-40: 3%

41-50: 8%

Over 50: 89%

What is the age of your youngest employee?

18-25: 55%

26-35: 21%

Over 35: 24%

It’s surely not a shock that the average body shop employee is aging out as this year’s results show. The percentage of shops with employees over the age of 50 have ranged from 89 to 94 over the past few years. Even the youngest employees aren’t getting any younger. When the survey made its debut in 2021, 64 percent of shops surveyed reported having employees between the ages of 18-25. That figure dropped all the way down to 46 percent last year yet climbed back up to 55 percent in 2024. Perhaps the jump is a sign that things are improving in the way the industry recruits new people; however, issues with finding new employees remain a hardship for many collision repair businesses. 

Where do you look to hire new employees?

Word of mouth/referrals: 60%

Online: 37%

Local vocational schools: 37%

Everywhere: 36%

Not searching: 13%

Finding good quality help continues to be a thorn in a shop owner’s side. Word of mouth/referrals remains the number one recruitment source for body shops. In 2023, 60 percent of respondents indicated they went online to find workers, yet that number plummeted down to 37 percent this year, an indication that people are thinking outside the box more. Some respondents are getting the word out by social networking and making good use of networking, including talking with “salespeople who come in the door” as one survey respondent stated. 

What is the annual salary of your lowest-level employee?

Less than $25,000: 16%

$25,000-$35,000: 24%

$35,001-$45,000: 31%

$45,001-$55,000: 13%

$55,001 or more: 16%

What is the annual salary of your highest-level employee?

Less than $70,000: 11%

$70,000-$85,000: 8%

$85,001-$99,999: 21%

$100,000 or more: 60%

Lowest level employees making $45,000 or less is unchanged from last year; however, this year’s survey results show a 12 percent increase in how many employees make $100,000 or more from last year. This year’s results show a steady decline in employees making between $70,000-$85,000 with only eight percent reporting salaries at this level down from 19 percent in 2023. 

Are you familiar with AASP/MA’s legislative agenda for the current session?

Yes: 100 %

No: 0

Do you feel that your customers care about the issues facing the collision repair industry?

Yes: 35%

No: 65%

Effectively communicating with consumers may be working as 35 percent of respondents believe customers care about what is going on in this industry, a significant increase from last year’s 26 percent. 

Many truly believe in the benefits of educating their customers: 

“Labor rates are low and suppressed by insurance companies. We educate every customer, and we post our labor rate.”

“Educate and advocate [for] customers. Make calls on their behalf.”

“[Customers] appreciate learning.” 

“We educate, and we show them.” 

“We spend a lot of time educating the consumers.” 

While many feel strongly about playing a role in educating consumers, others were less enthusiastic about taking the time for many reasons. 

“I feel they are unaware.”

“People think they should not have to deal with anything and that insurance companies should just pay the invoice. They can’t be bothered with calling and fighting for reimbursement.”

“Some are sympathetic; others have their own problems.”

As an industry, how do you think we can better educate customers? 

Television/radio commercials: 54%

Social media campaigns: 77%

One-on-one conversations with the customer on-site: 58%

Office signage: 38%

Emails and letters sent from shops and the Alliance: 35%

By better educating shops so they can educate more customers: 65%

Shop owners believe there are many ways to reach consumers on the perplexing issues the industry faces; however, social media campaigns and one-on-one interaction top the list. 

Others offered some outside the box suggestions:

 “Hire a PR firm to manage the messaging and create targeted campaigns.” 

“Create a quick video from a lawyer about consumer protection laws, insurance policy/tricks and legal service.” 

Do you balance-bill customers (charge a copay) when insurance reimbursement does not cover the entirety of your invoice?

Yes: 58%

No: 42%

Once again, the majority of body shops who took this survey indicated they balance-bill their customers, which is in line with the message the Alliance has been sending to shops throughout the Commonwealth; however, this figure reflects a four percent decrease from last year. This small change could mean that insurers are paying more toward repairs, or perhaps shops are doing a better job at writing complete estimates and documenting everything they write. 

How do you educate your current and potential customers?

The debut of this question resulted in a number of interesting responses with every single respondent indicating that verbal communication is the key factor:

“One-on-one conversations.” 

“We just mention the rate the insurance company offers, and most customers get it. We keep them updated throughout the repair process on what is not being covered and why they must cover the difference.” 

“Explain to them that their car is a rolling computer.” 

“We talk with them and tell them that it isn’t us; it’s them (insurance company) not paying.” 

“We have phone calls and face-to-face conversations. We explain the importance of insisting upon following OEM procedures. We explain the potential problems created when a party other than the OEM dictates the repair plan.” 

What do you think is the most pressing issue affecting shops today?

Labor reimbursement rate suppression continues to top the list for collision repairers in Massachusetts along with insurer interference/referrals and programs. Although this year’s survey showed a slight decrease in respondents indicating workforce shortage is an issue, the problem still plagues shops. 

One respondent offered up vehicle complexity as a major concern, and another brought an interesting issue to light: “Unqualified shops doing work that they aren’t capable of and/or not getting compensated properly ruins it for the good shops that do everything correctly.” 

Are you currently certified/recognized by an OEM to perform collision repairs?

Yes: 31%

No, but I’m working toward it: 35%

No, and I do not plan to become certified/recognized: 34%

If you answered that you ARE certified/recognized by one or more OEMs, please list them below. 

Out of all the motor vehicle manufacturers listed, more than two-thirds of respondents are certified in Honda/Acura. Hyundai, Kia and Nissan were also popular choices for OEM certification. Others listed General Motors, Ford, Subaru, FCA, Lincoln, Mazda, Audi/Porsche/Volkswagen and Volvo. 

If you answered that you ARE certified/recognized by one or more 

OEMs, what is your incentive to continue with the program? 

Every shop owner has his or her own reasons for how they do business, but those who answered the survey believe OEM certifications improve their shop’s reputation. Enhanced access to OEM procedures is another major reason shops chose to make these investments. One respondent relays that OEM certification “provides us with leverage when enlightening appraisers about required processes and procedures.” 

How would you rate your current state of business?

1-3: 15%

4-6: 23%

7-8: 31%

9-10: 31%

A first since the survey debuted, 31 percent rated their state of business at the highest level. This number has nearly doubled since 2022, a good sign that things are improving for collision repair businesses. 

How does your shop handle ADAS calibrations?

Repair In-House: 15%

Sublet repairs to dealership: 31%

Sublet repairs to ADAS calibration center: 54%

If you calibrate ADAS in-house, who performs the calibrations?

Shop owner: 23%

Repair planner: 0%

Dedicated calibration tech(s): 62%

Whoever works on the repair: 15%

Motor vehicle technology advancing at rapid rates have made ADAS a household name and a resident in just about every single car manufactured today. Per CCC Intelligent Solutions’ 2024 Q1 Crash Course Report (cccis.com/reports/crash-course-2024/q1), 95 percent of light duty vehicles manufacturers in 2023 came equipped with automatic emergency braking. Not too long ago, shops may have believed ADAS calibration needs would be few and far between, but that quickly did not become the case. Some shops jumped on the bandwagon early and found ADAS calibrations to be its own revenue source. (See the feature in the November 2024 issue of New England Automotive Report available at grecopublishing.com/near1124coverstory).

The debut of this question revealed that 15 percent are already performing ADAS calibrations in-house, while the majority is still subletting the work to dealerships or ADAS calibration centers. 

Clearly, training in this area is key to performing these calibrations correctly, so it’s reassuring to see 62 percent of respondents have a designated staff member(s) devoted to performing this work.

Over the past year, have your sales increased, decreased or stayed the same?

Increased: 42%

Decreased: 23%

Stayed the same: 35%

These numbers have certainly fluctuated over the years. This survey first debuted when body shop businesses were just trying to make a comeback from the major hit the pandemic swung at them. Each year since, the majority of shops have indicated an increase in sales or no change from the prior year; however, this year, that number falls below 80 percent for the first time since 2021. 

What are you doing to combat rising P&M costs? 

Fighting to get reimbursed for paint and material costs has been a major sore spot for collision repairers – and it’s only gotten worse over the years thanks to increasing costs and tighter insurer purse strings.

While some respondents rely on vendor invoicing software, others indicated the use of paint calculators or Mitchell paint sheets. One survey taker noted, “Charge paint sheet based on color, not hourly rates.” Another said, “Provide actual invoices for P&M paid and used on each job.” 

One shop owner advised, “Insist upon proper compensation from the insurance carrier or charge the client for providing costs if denied by the carrier,” while another indicated his business is considering charging the customer for P&M shortpays. One respondent believes getting reimbursement is not in the cards. “Nothing. It’s set by the Mitchell guide and the insurance company.” 

How would you define the “future” of collision repair?

A slew of interesting answers came in from respondents who pointed to a number of concerns as they look toward the “future” of the industry. Some forecast a decreased need for the trade, claiming “fewer cars to be fixed. More cars will be forced to go to the dealer.” 

Some other predictions: 

“There will be fewer shops, especially independent ones. All will specialize.” 

“Quality will go down. Even if we finally get a fair reimbursement rate, we will not have people to do the work. The advancement of technology is also making it more difficult to repair vehicles.”

“Dominated by insurance steering.” 

“It’s a bleak race to the bottom.” 

Many maintain a positive outlook as one person indicated, seeing a future that is “very positive if we can stay educated and maintain alliances with like-minded collision repairers. Educated collision repair facilities are becoming a commodity.” 

Another believes it’s “survivable” as long as there is change for small body shops, else “it will eventually be dealerships with long waits for body work.” 

Ultimately, repairers want things to improve. Perhaps the most telling answer was the respondent who simply stated, “Things have to change.” 

What are your biggest concerns about Artificial Intelligence (AI)?

Talk to the average person on the street, and they are likely to admit they are afraid AI will take jobs away from them. It’s a concern shared by most industries, collision repair included. However, repairers keeping up with the industry via the Collision Industry Conference or SEMA learn from presenters about the many AI-related tools in development designed to help body shops with customer service, appointment set up and then some, but that doesn’t easily erase concerns overall as answers to this debut question revealed. While some admitted to knowing very little about AI or have “no care in the world,” others are concerned about what the insurance industry may use it for. 

“If insurers use AI, it will increase the lack of ability to negotiate.” 

“AI could be used wrong by insurance companies.” 

“It’s already hard enough to speak to insurance companies via the phone. AI will just add to that issue. It will be more difficult to get issues resolved.”

“The progression of AI is happening at a faster rate than collision repairers can educate for.” 

“Insurance companies have big pockets to influence dialogue.” ​​

In your experience, which insurer do you find the most difficult to deal with, and why? 

This question gave shops the opportunity to call out their insurance foes, and most took full advantage of that, naming a total of 12 insurance companies they find most difficult to work with. Topping the list was MAPFRE, Progressive and Commerce with State Farm, Allstate and USAA trailing behind, but not by much. 

One shop cited MAPFRE for “heavy steering,” and another survey taker called out the insurer for refusing to pay for “parts, procedures, and P&M, which all other companies pay for.” 

“MAPFRE is way out in left field,” wrote one survey taker. 

One shop said Progressive “is suffering from incompetence and low staff levels.” 

Another shop called out Progressive “because of the cycle time” and Commerce for “rejecting labor rates and costs.” Another said, “Commerce does not negotiate at all.”

One respondent called out Progressive, along with GEICO and State Farm for “demanding aftermarket parts.” 

Another came forward simply with, “THEY ALL SUCK!” 

What is the current hourly labor rate you are being reimbursed by insurers?

Less than $40: 4%

$40-$59: 85%

$60-$79: 7%

$80 or more: 4%

What do you think your labor rate should be?

Less than $60: 0%

$60-$79: 27%

$80-$99: 61%

$100 or more: 12%

Despite some small increases by a few insurance companies, Massachusetts continues to be burdened by a rate so low and insufficient that it’s put some shops completely out of business. This severely insufficient rate of $40 per hour (the lowest in the entire nation) has plagued the Commonwealth for decades, although change is on the way. 

Big news came out in December when this survey was being conducted that an Auto Body Labor Rate Advisory Board will be established to study and review the labor reimbursement rate in order to make recommendations to the Division of Insurance for a fair and equitable labor rate. (See the January 2025 issue of New England Automotive Report for more at grecopublishing.com/near0125coverstory) As these responses reveal, change is absolutely needed as 85 percent of repair facilities are being reimbursed at less than $60 per hour, and four percent are still getting paid less than $40. 

How do you promote your business to current and potential customers?

Word of mouth/referral/reputation: 96%

Internet (social media/website/Google/Yelp): 65%

Local advertising (cable/radio/community involvement): 42%

None: 0%

Shops continue to believe it’s word of mouth and referrals that are the main source for bringing customers to their bays with social media and local advertising also being ideal. 

How do you feel social media and digital platforms like Yelp have impacted your business?

A positive impact: 62%

A negative impact: 19%

A mix of both: 15%

No impact: 4%

Do you feel that your shop is prepared to repair electric vehicles (EVs)? Why or why not?

Yes, we are prepared: 43%

No, we are not: 57%

These numbers have steadily changed over the past few years. Initially, nearly two-thirds felt they were not prepared to fix these vehicles, and now, that number has fallen down to 57 percent as more body shops are starting to educate themselves about the EV revolution. 

Have you and/or your employees undergone any training in the past year?

Yes: 62%

No: 38%

Part of being successful in such an ever-changing industry is keeping up with the requirements for fixing cars correctly. Most of the respondents indicated they invested their training in I-CAR Gold or Platinum status and in ADAS calibration. 

What type of training does your shop need more of?

Some survey takers unveiled they want to prepare for the future, listing EV and ADAS training needs, while others stressed the importance of OEM training. One respondent pointed out how one may have 30 years of experience, but that “does not prepare for us the cars of today, which is why OEM procedures are an absolute necessity.” 

Outside of training, how much time do you invest in keeping up with industry trends? 

Some respondents feel very strongly about staying informed via AASP/MA and also nationally with the Society of Collision Repair Specialists and 20 groups. One survey taker invests roughly 20 hours per week toward news and updates. Some indicated they spend just a few hours a week reading industry publications, while others admit they try to put the time in but need to do more. Then there are some who are ready to hang up their tools when it comes to the industry, claiming “At this point, I don’t care about industry trends. I just want to close my shop and get out of this.” 

If you could change anything about this industry, what would it be?

Many areas were covered throughout the survey, including technology, technician shortages and labor reimbursement rates, so it’s really no surprise that these are the areas collision repairers believe need the most work. In fact, as indicated by the responses, they are all intertwined. 

“Labor rate, and we need vocational schools to teach the correct auto body curriculum to get more kids into the industry.”

“Everything, starting with fair wages that will entice future talented people to come into the industry.” 

“The compensation for the technicians. I feel they should be getting paid double what they are. This would increase the number of technicians and the quality of the repair. It would require a fair labor rate. If auto body shops could compete financially with other trades, the industry as a whole would benefit.” 

For one survey taker, it all comes down to education on the issues.

“I would insist on education requirements for all collision repairers. This would increase the safety and quality of the repair. Educated repairers would insist upon a fair and reasonable labor rate. Currently, the masses of uneducated repairers contract with the insurers who require zero education to make them ‘preferred.’ This is the core of our problem. Education requirements would weed out the unprofessional repairers. Insurers would have much less success convincing educated repairers to accept a suppressed labor rate. The consumer would be safer and collision repairers would be fairly compensated.”

Closing

The industry continues to evolve. Vehicle technology is doing the same. In fact, body shops are evolving as well. As the survey indicates, change is needed, change is happening, and the shops that plan to stick around are making changes to keep up with it all.

No shop is all alone in the fight. In fact, it’s been proven that strength in numbers can lead to wins. We hope this year’s survey leaves you with some guidance and hope toward what is to come down the pike and what may be needed when they happen. There will always be changes, especially in this industry. The important thing to remember is that everyone is in it together. 

Want more? Check out the February 2025 issue of New England Automotive Report!