FIXED OPS JOURNAL ILLUSTRATION FIXED OPS JOURNAL SERVICE COUNTER By the hour Average hourly labor rates in body shops in select states California Illinois Arizona Hawaii New York New Jersey Ohio Rhode Island Michigan Texas Florida *Through September 2017* 2016 $ CHANGE $56.75 $52.16 $51.46 $51.36 $49.33 $48.04 $47.90 $46.81 $46.67 $46.11 $43.50 $55.49 $51.98 $51.09 $50.24 $49.07 $47.84 $46.00 $45.96 $46.27 $45.74 $42.94 $1.26 $0.18 $0.37 $1.12 $0.26 $0.20 $1.90 $0.85 $0.40 $0.37 $0.56 % CHANGE 2.3 0.3 0.7 2.2 0.5 0.4 4.1 1.8 0.9 0.8 1.3 Among new cars and trucks sold in 2016, breakdown of accessorized vehicles VEHICLE TYPE % OF ACCESSORIES MARKET Pickups Midrange/traditional cars SUVs CUVs Upscale cars Sports cars Small cars Vans Alternative-power vehicles 30 18 16 10 8 7 7 3 1 Source: 2017 SEMA Market Report Source: Mitchell International Added value Winter's tale Use of winter tires by drivers once snow and freezing conditions occur Don't use winter tires Install winter tires right away Install winter tires, but not right away Based on online scientific survey of 1,000 motorists, Oct. 25-30 Source: Michelin PAGE 6 Dressing up the ride FEBRUARY 2018 12% Growth in U.S. retail sales of auto accessories and other specialty equipment YEAR 62% 26% SALES (IN BILLIONS) 2011 2012 2013 2014 *Estimated $29.99 $31.32 $33.41 $37.18 2015 2016 2017* $39.09 $41.16 $43.17 Source: 2017 SEMA Market Report