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LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.
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While LOR continues to decrease from post-pandemic highs, ongoing market and economic conditions could impact future results.
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Enterprise Mobility data show rental durations declining for the third consecutive quarter, with faster parts delivery and higher use of alternative parts contributing to shorter repair times.
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The industry may not be returning to the lower LORs of 2019 and 2020 as two years of declining repair shop backlogs appear to flatline.
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As Q2 2024 started, the average backlog of work in shops nationwide declined significantly.
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Many auto repairers are finding ways to anticipate and operate in the new normal, but challenging market conditions remain.
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The trend of predictable seasonal length of rental continues, with the decrease as positive, and many repairers finding ways to anticipate and operate in the new normal.
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The growing trend of lower Length of Rental (LOR) is promising but still reflects "new normal," recent quarterly analysis shows.
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While the risks of an EV “thermal event” are far lower than gasoline tank fires, the rare occurrence can turn into an all-consuming catastrophe.
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The LOR decrease is positive, and many repairers are finding ways to anticipate and operate in the new normal, but challenging market conditions remain.
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