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Collision repair industry urges statutory fix to raise auto body labor rates
Summary
Body-shop owners, trade groups and industry representatives told lawmakers that current labor reimbursement rates do not cover training, equipment or advanced repair work and urged passage of bills to establish a data-driven mechanism for prevailing rates and ongoing advisory board review.
Owners and trade associations representing collision repair facilities urged the joint hearing to support legislation they say is necessary to update labor reimbursement rates for auto body repair in Massachusetts.
Lucky Papageorge, executive director of the Alliance of Automotive Service Providers of Massachusetts (ASPMA), and David Brown, fixed operations director for a family of dealerships, said current average reimbursement rates paid by insurers — frequently cited around $44–$46 per hour during testimony — were inadequate given rising costs of equipment, training and vehicle technology. "Body work at my shop averages in at about $44 an hour right now," Brown said. "We can't sustain that. We need them. It's a small family owned business."
ASPMA and other witnesses supported House bills 12 60 and 12 85 and Senate Bill 7 97, saying the measures would either create a data-driven mechanism so repair facilities could present prevailing market rates or provide ongoing advisory-board review and annual recommendations to the Legislature and the commissioner of insurance. Papageorge described the national average as "just shy of $70 an hour" and said Massachusetts rates remain substantially below that level.
Witnesses said insurers often pay higher rates to mechanical shops than to collision shops despite the complexity of modern collision repair, which can require calibration of advanced driver-assistance systems and costly equipment such as frame machines and downdraft spray booths. "You're dealing with cars that are now hybrid with ... complicated technical accident avoidance systems in them," a speaker said, noting costs of compliance and training.
Representatives of repair shops emphasized workforce concerns: technicians are aging out of the trade, vocational programs are shrinking, and young workers can often earn more in other driving or logistics jobs than in collision repair. Industry witnesses urged the committee to advance legislation that would allow periodic, documented adjustments to labor rates so shops can maintain safety standards and remain viable.
Ending: Representatives asked the committee to issue favorable reports on H1260, H1285 and S797 and noted the auto body labor rate advisory board will meet again to gather data and make recommendations.
