Collision repair has been on an upward swing in the past decade and the industry has seen increases across the board, according to a recently published report. A 2017 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace, the 13th annual white paper by the Romans Group LLC, reveals how the four industry pillars have helped strengthen and grow the industry. The industry’s overall revenue increase was achieved by focusing on four key areas. Those areas are consolidation, contraction, convergence, and constructive transformation.
The U.S. collision repair industry has continued to improve.
“This growth is reflected most significantly in the sustained expansion progress by the four large independent consolidators and in the remaining ≥$20 MLO independent and dealer repair segment. The 96 ≥$20 million MLOs represent 26.9 percent of the industry’s market size which has grown from 24.6 percent in 2016 and is significantly higher than their 2006 share of 9.1 percent,” a section of the report reads.
The top five repairers in the U.S., according to the report, are Caliber, Service King, ABRA Corporate & Franchise, the Boyd Group, and CARSTAR. Meanwhile, the collision repair industry has seen growth in Canada.
“Although the U.S. has seen an increase in consolidation within the multiple-location operator segments, Canada remains significantly more consolidated in the revenue generated by the combined franchise and banner and ≥$10 million MLOs. In Canada, this combined segment group represents a 78.4 percent market share versus the combined 35.9 percent share for the same U.S. segments,” a section of the report reads.
The top five Canadian independents and dealers, according to the report, are Boyd, Craftsman, Kirmac, Auto Canada, and Speedy. The Canadian markets have emphasized consolidation over the past few years and have lost a large amount of its collision repair locations.
“Compared to the U.S., Canadian average annual repair revenue in 2016 was 54.7 percent lower than the U.S. average. As a sign of ongoing consolidation, the average revenue per repair facility for both Canada and the U.S. has been steadily increasing over the last few years,” according to the report.