Motor crash repairers are seeking an urgent meeting with insurers over concerns that they are being squeezed by insufficient payments when supply chain problems are fuelling surging cost increases.

The Motor Trades Association of Australia (MTAA) says the issues are compounding already unsustainable cost containment business practices by insurance companies, and otherwise successful collision repair businesses are being brought to the brink of collapse.

“Collision repairers have exhausted productivity improvements, and cost absorption strategies across all expense areas of their business and enough is enough,” CEO Richard Dudley said.

The MTAA, on behalf of state and territory associations and the Australian Motor Body Repairers Association, has written to the Insurance Council of Australia seeking a summit to resolve the issues.

Mr Dudley says repairers have reported one insurer that hasn’t adjusted the price it compensates repairers for automotive paint and coatings for 14 years, while one paint company has increased its prices three times in the past 14 months.

“Collision repair small businesses are already dealing with historic skills shortages and ballooning labour, parts and materials costs, and adapting to changing technology and materials in new cars,” he said.

The cost of containers that bring parts, panels, components, wheels and accessors to Australia has surged since before covid, the motor repairers say.