Industry Analysis & Industry Trends
The Car Body Shops industry has been driving 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. While the recovering economy will benefit many automotive industries, car body shops will not fare as well. Consumers will prefer to buy new cars rather than have their older cars repaired. 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 Analysis Chapter
The Car Body Shops industry derives its revenue from drivers that pay these shops for certain automotive repairs. Some of these repairs, such as severe body damage and broken glass, are necessary because the vehicle would be unsafe to drive if left unattended. This segment of the industry is driven by the number of accidents that take place, which is primarily affected by the number of cars on the road and the average age of the cars on the road.
Increased activity in these areas increases the likelihood of collisions, leading to potential positive demand for the necessary repair segment. Other repairs are largely discretionary purchases and depend on consumer income. Depressed economic activity can lead consumers to postpone repairs to avoid spending money... purchase to read more