Car Body Shops in Canada Industry Market Research Report Now Available from IBISWorld

Share Article

The majority of operators in the Car Body Shops industry have enjoyed a relatively smooth ride over the past five years; however, as the economy continues its rebound and consumers increasingly purchase new cars with better safety features, fewer collisions will translate into weaker downstream demand for car body repair services. For these reasons, industry research firm IBISWorld has added a report on the Car Body Shops in Canada industry to its growing industry report collection.

News Image
New vehicle sales over the next five years will limit growth prospects for the industry.

The majority of operators in the Car Body Shops industry have enjoyed a relatively smooth ride over the past five years. On one hand, the economic recession harmed industry participants, as many Canadians held off on essential repairs and discretionary services, including window tinting. At the same time, the global recession tightened consumers' purse strings, and hence many people held off purchases of big-ticket items such as automobiles, as evidenced by an 11.4% drop in new vehicle sales in 2009. Alternatively, existing vehicles were increasingly fixed and upgraded, resulting in a 5.2% jump in industry revenue over the same year. Starting in 2010, the economic recovery has encouraged a rebound in new vehicle sales, which in turn translated into slower industry growth over the following years. Therefore, over the five years to 2013, industry revenue is anticipated to grow at an average annual rate of 1.9% to $4.6 billion.

According to IBISWorld Industry Analyst Agiimaa Kruchkin, “The total number of vehicles on the road determines the likelihood of accidents and collisions, which in turn drives up demand for industry services.” In 2013, the number of motor vehicle registrations is expected to grow an anaemic 0.3%, which will limit industry revenue growth to only 0.9%. Meanwhile, newer cars rolling off the assembly lines of automobile manufacturers are more powerful, safer and often help drivers avoid collisions. Stricter regulations in the automobile manufacturing industry have pushed car manufacturers to include heavy safety provisions for the driver; as such, fewer collisions resulted over the past five years due to advanced technologies present in new vehicles.

Over the next five years, industry operators are anticipated to travel along a bumpier road. “As the economy continues its rebound, consumers will enjoy greater disposable income and hence will increasingly purchase new cars,” says Kruchkin. These new cars will come equipped with more technologies that enhance safety and help drivers avoid accidents and mishaps. In turn, fewer collisions will translate into weaker downstream demand for car body repair services. New vehicle sales, which are anticipated to grow, will limit growth prospects for the industry. The Car Body Shops industry displays a low level of market share concentration. However, IBISWorld expects market share concentration has been increasing due to the industry trend of consolidation.

For more information, visit IBISWorld’s Car Body Shops in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Car Body Shops in Canada industry comprises establishments that are primarily engaged in providing repair, paint and customization work to the interior and body of passenger cars, trucks, vans and trailers. Some industry firms specialize in certain 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+1 (310) 866-5042
Email >
Visit website