The cost of repair rose 14% between H1 2019 and H1 2021 and is likely to continue to climb according to the latest research from Trend Tracker.
Using Audatex data as basis for its repair insight, data shows parts and paint rose 12% and 13% respectively between 2019 and 2021, whilst ‘additional costs’ – those relating to areas such as Covid-19 charges and ADAS calibrations – rose by 46% during the same period.
Per repair, average parts costs rose from £810.76 in 2019 to £919.47 in 2021.
Paul Sell, associate director of Trend Tracker explained, “Parts costs are increasing at a rate of over six per cent year-on-year, this is a significant amount, and the situation is unlikely to ease as challenges continue across all supply chains globally in light of the pandemic and vehicle part technology increasing too.”
A survey carried out in partnership between Trend Tracker, ARC360 and NBRA – the full findings of which are included in Trend Tracker’s Emerging from Covid-19 report – revealed 92% of the supply chain had experienced parts delays in the supply chain since the turn of the year.
In the report Trend Tracker goes into detail on rising unit costs, an example being a reference to Rushton International which claims housing cost inflation during 2020 rose around four per cent as a result of the impact on supply chains which included increased lead times, increased cost in raw materials and labour issues (shortages).
The challenge of rising costs within the claims sector was covered in a recent ILC Home webinar which focused on the increasing price and scarcity of building materials.
ARC360 on demand (14 July), featuring Trend Tracker, will take a closer look at the challenges currently faced by the supply chain and provide an in-depth insight into what it might mean for the claims sector.
