PRESS RELEASE 8-24-2006 For Immediate release: The New York State Auto Collision Technician’s Association has commissioned an Economic Study of the Auto Body Repair Industry. This recently completed study was born from numerous requests for an independent analysis by members of the New York State Senate and Assembly at past meetings with association representatives. The Association retained the services of renowned economist, Dr. Frederick B. Jennings, Jr., Ph.D. of EconoLogistics who has performed similar studies for Rhode Island, Massachusetts and Ohio. This report addresses the effects of a profit squeeze by insurers on independent auto body repair shops in New York and elsewhere. The study conclusions support our longstanding contention that the Auto Body Repair Industry in New York State is suppressed by the insurance industry and has been for many years. The insurance industry has reaped enormous profits at the expense of the consumer and the Auto Body Repair Industry. The report illustrates auto insurance rates have increased over 145% in 19 years while Auto Body Repair labor rates have risen by 45% or $12 per hour for the same period. Even in 1987, the first year examined, Auto Body Repair labor rates of $28/hour were 40 to 50 percent below the prevailing comparable labor rates for mechanical auto repair of $40 to over $50 per hour, showing that a profit squeeze stemming from insurer’s suppression of labor rates already existed at that time, although perhaps it was not as severe as it became by 2005. This situation has led to many undesirable losses, both for independent Auto Body Repair shops and for New York consumers. Repair shops are experiencing grave difficulties in attracting and retaining qualified personal in an environment of inadequate labor rate reimbursement Several remedies for this situation are suggested. The most obvious and immediate solution at hand is to raise allowable Auto Body Repair labor rates in New York. These increases should at least keep pace with the economically comparable Mechanical rates and address the rising energy and overhead costs of performing Auto Body Repair work in New York State. For further information contact Ed Kizenberger, Executive Director 631-941-9647