The Age Of Aluminum – auto repair industry trends

You apparently bethink something in apple history about the Stone Age, the Bronze Age and the Iron Age. If it comes to the approaching of automobiles in America, the Age of Aluminum is aloft us. With added advancing CAFE (Corporate Boilerplate Ammunition Economy) standards getting formed out by the United States government, the move against aluminum and alien metals to access ammunition ability is ramping up into abounding beat as Ford unveils the new F-150 this fall.

The use of alien metal on physique panels is not something absolutely new as magnesium and aluminum accept been about for a while. However, in the accomplished these metals were mainly begin on college dollar, lower aggregate cars or on just a few panels such as the awning or lift gate.

The F-150 signals the aboriginal above use of aluminum as it is one of the best affairs banal cars in history. Blow adjustment and allowance claims industry professionals will be put to the analysis already these cars appointment their aboriginal fender benders. According to abounding sources including blow repairers, allotment suppliers and insurers, the appulse is ambiguous but there could be some activating changes aural the industry as the about-face to aluminum accelerates. Here are some accessible scenarios that may unfold.

1. Collision Adjustment Boutique Numbers Continue To Shrink. Over the accomplished decade we accept apparent a accelerated abbreviating and alliance in the adjustment industry. With the appearance of added specialized repairs, hi-tech cockpit gadgetry and newer metals, abounding adjustment accessories are artlessly unprepared. The investment appropriate to plan on aluminum includes specialized arresting tools, apple-pie allowance stations to annihilate cross-contaminates and abstracted exhaustion systems which are above the economics of abounding abate absolute shops. For abate shops to compete, there will acceptable be a trend against “specialization.” Abate shops may bandage calm in bounded areas with one absorption on new metals to advance activity while insurers will focus their DRP networks to the beyond MSOs and dealerships. Shops clumsy to acclimate will acceptable disappear, accelerating the crumbling boutique landscape.

2. Rising Adjustment Costs. For years the boilerplate adjustment severity has been adequately constant and insurers accept become actual adequate with this. With an access of blow admonishing systems, cameras, and aluminum, aliment costs could bound skyrocket. Aluminum aliment are a little added complex as aluminum does not absorb anamnesis like accepted area metal. Often, simple aliment that are accepted with area metal may crave backup with aluminum. Additionally, adjustment times may access on repairable panels arch to college aluminum ante and added big-ticket backup costs. Even if adjustment costs alone access 3% on a $2,500 repair, that’s an added $75 per car. For an insurer processing just 1000 files month, this translates about $900,000 in added adjustment costs per year.

3. Higher Premiums. If allowance carrier costs rise, the customer ultimately absorbs the cost. The next accessible book consistent from college adjustment costs due to an accretion arrival of aluminum cars would be college allowance rates. Allowance experts adumbrate that the amount to assure the new Ford F-150 will be college than the accepted pre-aluminum models while others feel it will even out if factoring in lower ammunition expenses. Added than likely, allowance premiums will acceleration until insurers accretion a butt on the accurate costs associated with aluminum adjustment and allotment replacement. One added adventitious achievability could be the access in uninsured motorists on the alley if some consumers apprehend they cannot allow coverage. They may yield risks and abandon insurance, which may advance to a subculture of abate amateur shops that attack aluminum aliment break creating added alarming cars on the road.

4. Rise in Absolute Losses. If the adjustment costs al of a sudden ascend on cars utilizing newer metals we may see assertive cars beat absolute accident thresholds added quickly. Insurers could face a fasten in absolute losses as aluminum use becomes accustomed and the aboriginal beachcomber of aluminum cars age. In a few abbreviate years this would abate repairable car opportunities for shops added abrupt the abbreviating blow adjustment marketplace. This may added accident the activity of abate absolute shops, as they would now lose ahead repairable cars to absolute losses.

Nobody can be assertive absolutely how the alteration will play out. As with all change there are consistently those with acute predictions that never appear to fruition. On the added duke there may be some accuracy to the warnings accustomed by those aural the industry. The acceptable affair is that innovators generally footfall advanced and abounding of the fears are alleviated with new solutions and technology. The blow industry and insurers just charge to be able to acclimate and innovate and accept that the approaching will be absolutely activating and the key is to be active and acclimate quickly.