Down shifting: Growth from economic recovery is expected to subside moving forward

Over the five years to 2018, the Car Body Shops industry experienced steady revenue growth. The average age of vehicles in the United States grew during the period, and consumers have resumed spending money on costly discretionary items for their vehicles. Pent-up demand for nonessential auto repairs, such as paint jobs and window-tint installation, also caused industry revenue to grow during the five-year period. However, improvements in vehicle technology reduced the number of collisions requiring major body repairs, although the industry continues to benefit from an increasing number of vehicle registrations and a higher average age of vehicles on the road...purchase to read more.

Industry Statistics & Market Size
Revenue
$44bn
Annual Growth 13-18
2.3%
Forecast Growth 18-23
Profit
Employment
347,914
Businesses
123,580
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The number of new cars purchased instead of old ones may limit growth among industry body shops
  • Profit margins remained the same as a result of heightened competition in an oversaturated market
  • As the economy continues improving, consumers will be more likely to spend money on major repairs
  • Industry Report - Starting a New Business Chapter

    Prospective operators seeking to enter the Car Body Shops experience moderate barriers to entry. Although the industry experiences a low degree of market share concentration, some barriers, such as start-up capital costs, can make entering the industry difficult. Despite these barriers, there is some scope for new entrants to enter the market. New operators may find it easier to set up in urban areas where there is limited existing competition, or they might target a niche segment, such as low-cost repairs for the elderly, exterior customization of cars for small businesses and individuals or interior van conversions.Start-up capital requirementsStart-up capital requirements are prohibitive for some prospective entrants. Sta...purchase to read more.

    Additional Insights for the Car Body Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Body Shops Industry are

  • Membership of an industry organization
  • Provision of superior after sales service
  • Ability to keep direct repair programs
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and New car sales in the Car Body Shops industry impact industry performance..

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    What's in this report

    What is the Car Body Shops Industry?

    This industry provides repair and customization work to the interior and body of passenger cars, trucks, vans and trailers. Some industry operators specialize in specific auto repairs; for example, paint shops specialize in post-collision paint jobs, while automotive glass shops replace, repair and tint windows. Restoration shops, which typically represent a niche market, restore classic and antique cars.

    Industry Products
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Upholstery and interior repair
  • Merchandise sales
  • Detailing services and body conversions
  • Other services
  • Industry Activities
  • Automotive bodywork
  • Automotive painting
  • Automotive upholstery shop operation
  • Automotive interior repair
  • Antique and classic automotive restoration
  • Truck trailer body shop operation
  • Truck trailer paint and body repair
  • Van conversion
  • Automotive glass shop operation
  • Automotive glass tinting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • New car sales
  • Number of vehicle accidents
  • Average age of vehicle fleet
  • Number of motor vehicle registrations

  • Current Performance
  • More business, but slower enterprise growth
  • Profit remains steady
  • Direct repair programs
  • Chart: Revenue Growth

  • Industry Outlook
  • New cars and safety standards
  • Profit and establishment growth
  • Table: Car Body Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Body Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling
  • Used Car Dealers
  • Property, Casualty and Direct Insurance
  • Couriers & Local Delivery Services

  • Key Selling Industries
  • Glass Product Manufacturing
  • Paint Manufacturing
  • Plastic & Resin Manufacturing
  • Structural Metal Product Manufacturing

  • Products & Services
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Merchandise sales
  • Upholstery and interior repair
  • Other services
  • Detailing services and body conversions
  • Chart: Car Body Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Middle income bracket
  • Highest income bracket
  • Businesses
  • Lowest income bracket
  • Other
  • Chart: Major Market Segmentation for the Car Body Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Labor
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Car Body Shops

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Body Shops Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car Body Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Body Shops Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Vehicle registration (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Aftermarket Parts
  • Essential car components manufactured by a company other than the manufacturer of the vehicle.
  • Crash Rate
  • The average percentage of registered motor vehicles involved in accidents annually.
  • Direct Repair Program (Drp)
  • An agreement between insurance companies and car body shops in which insurance companies refer claimants to a particular shop to get their car repaired.
  • Nanoparticles
  • Particles used in newer paints as fillers which reduce corrosion, fading and scratching while creating a better bond between the paint and the surface of the car.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Car Body Shops provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Body Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Body Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Body Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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