Vehicle Advancements Increase Cycle Time
CCC Information Services’ (www.cccis.com) research shows increases in key-to-key cycle time is due to the complexity of newer vehicles. Susanna Gotsch, the company’s leader of creation and on-going development of industry data and the author of CCC’s annual Crash Course publication, recently wrote a blog, published in Claims Journal, about what drives repair cycle time.
The average days between vehicle in and repair start, and the average days between repair complete and vehicle out have essentially remained unchanged over the last three years, according to Gotsch. Each averages slightly less than one day, whether the vehicle is driveable or non-driveable, and remain an opportunity for the industry to further streamline check-in and check-out, said Gotsch.
Over the last three years, the average number of days from the date the vehicle is brought into the shop to the date it is picked up, or “keys to keys,” has grown from 8.9 days to 9.4 days, according to CCC.
The article stated increases in average number of labor hours per claim and the average number of parts replaced per claim show that vehicle complexity plays a part in increasing overall cycle time. According to CCC, this comparison - repair time by vehicle age - helps underscore how newer non-driveable vehicles have repair cycle times that dramatically exceed those of the older models. For year-to-date 2016, a current model year non-driveable vehicle had an average repair cycle time of 16.2 days, versus a vehicle aged 7-years plus of only 11 days. The company’s previous articles show repair costs rise in new model year vehicles. As repair costs climb, so do cycle times, according to Gotsch. The article stated that non-driveable repair times have increased the most over the last three years which shows how even low dollar repairs such a headlamp replacement that might deem a vehicle non-driveable has increased by over half a day. As repair costs rise, efficiency falls, stated Gotsch. While the overall average of labor hours per repair day was 3.7 hours for vehicles from $1K to $3K, productivity well as the repair costs rise.
The blog also stated that automotive claim frequency is up. Reasons for this include more miles driven and more vehicles on the road. Severe winter weather, greater driver distraction, higher speed limits, more road congestion, and more miles on the interstate have also been blamed.
To read Gotsch’s entire blog post, go to www.cccis.com.