ICBC Announces Material Cost Allowance Adjustments

On June 13, ICBC announced they will be making adjustments to material cost allowances for collision and commercial vehicle repair suppliers. They will be providing a six percent increase for materials related to body work and 11 percent for paint by August 1, or sooner if possible.

“From the perspective of the industry, the announcement from ICBC is going to give us an opportunity to resolve at least some of the ongoing concerns dealing with the cost of materials,” said David Ribeiro, ARA’s advisor for the collision industry. “Although it doesn’t satisfy our concerns around labour rates, it does open the door for ICBC to potentially look at this issue in greater detail in 2020.

“It is by no means going resolve all our issues but it is a start and ICBC recognizes that. Industry is very appreciative that at least we have some recognition from ICBC that things are moving forward.”

ICBC is currently focusing on making changes to reduce the significant financial pressures they are facing; however, they also recognize industry has been facing substantial material cost increases. The ARA looks forward to continuing to work together with ICBC.