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Letter to the Editor

Mitchell Releases Latest Industry Trends Report

This edition’s Quarterly Feature, “Measuring Alternative Parts Usage,” (APU) analyzes the increasingly popular trend of APU and the important role it plays in the collision repair industry, given that parts can typically comprise 40 percent of a repair’s dollars. The recent analysis, which cross-referenced a random data set of estimators and estimates against Mitchell’s extensive database of parts prices, clearly shows that the practice of choosing less expensive parts of equal quality over parts from an Original Equipment Manufacturer (OEM) has been on the rise for several years.

The analysis also demonstrates the various methods used to measure APU, including Percent of Dollars and Percent of Part Count, and their relationship to part cost differential. The study’s results indicate that the higher APU percentage, the higher the parts cost differential.

“Our analysis shows, without a doubt, that APU percentages and parts cost differential are closely linked to one another,” said Jamison Day, Senior Director of Information Solutions at Mitchell International. “It’s also quite interesting to note that our analysis shows that both APU metrics appear to be equally accurate predictors of cost differential.”

This edition also includes a special feature by Greg Horn, Mitchell’s Vice President of Industry Relations. The article examines the possible impact that importing Chinese vehicles into the U.S. could have on global salvage prices.

Other valuable points of interest in the current issue of Mitchell’s ITR include:

• In Q3-2007, the average Property Damage appraised vehicle Actual Cash Value was $11,957 compared to Q3-2006’s average of $11,957—reflecting no change from this time last year.
• At $14,070, the average Actual Cash Value of vehicles appraised for Collision losses during Q3-2007 was $673 more than in Q3-2006 and also reflected the presence of slightly older vehicles.

Complete content is available in the latest Industry Trends Report, which may be downloaded in PDF format at www.mitchell.com. First published in April 2001, Mitchell’s Trends Report has grown in both content and circulation, now reaching more than 23,000 collision and casualty industry professionals.

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