Industry Analysis & Industry Trends
Operators in the Car Body Shops industry have been driving on a bumpy road over the past five years. The recession has had lingering effects on the industry, with consumers holding off on essential repairs and pulling back on discretionary services like paint jobs. Over the five years to 2019, the industry is expected to grow in line with a strengthening economy; however, consumers will prefer to buy new cars rather than have their older cars repaired, threatening demand for industry services. Furthermore, manufacturers are introducing safety technologies into new cars, which will reduce collisions, something that this industry depends on for work... purchase to read more
Industry Report - Industry Investment Chapter
The Car Body Shops industry has a low level of capital intensity, which is largely due to the large amount of labor required to perform most of the industry's services. The industry spends about $0.04 on capital for every dollar spent on wages. Independent operators and nonemployer firms have limited financial resources to invest in large-scale machinery and many labor functions activities cannot simply be replaced with investments in machinery.
Examples of equipment used in this industry include pick hammers (to fix small dents), hot-air welding guns, metal-cutting guns and painting tools. While the industry is increasingly requiring more technologically advanced repair machinery and tools, an equally high-end labor force is required to operate those tools... purchase to read more