Car Body Shops in the US Industry Market Research Report from IBISWorld has Been Updated

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As the US economy gains stronger footing, consumers will experience increases in disposable income and purchase new cars at accelerating rates; however, these new cars will be safer, which means fewer collisions and reduced demand for repair services. For these reasons, industry research firm IBISWorld has updated a report on the Car Body Shops industry in its growing industry report collection.

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Fewer collisions will translate into reduced industry demand for repair services

The Car Body Shops industry has been driving a bumpy road over the past five years. According to IBISWorld Industry analyst Radia Amari, “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”. Additionally, persistently high unemployment numbers have diminished the number of cars on the road. Fewer vehicles on the road decreased the pool of cars that would require industry services. As a result of these adverse conditions, industry revenue is expected to drop at an average annual rate of 1.7% to $35.6 billion in the five years to 2013. Neglected repairs offered a bright spot for the industry during the immediate years following the official end to the recession, but revenue will begin declining again in 2013, dropping an estimated 2.8%. The increasing demand for new cars will support revenue decline during 2013. A rise in new car purchases limits demand for repairing damaged cars.

Over the next five years, the industry is anticipated to continue traveling along the same bumpy road. As the US economy gains stronger footing, consumers will experience increases in disposable income and purchase new cars at accelerating rates. These new cars will come equipped with more technologies that increase safety and help drivers avoid accidents and mishaps. “Fewer collisions will translate into reduced industry demand for repair services”, adds Amari. Despite the pent-up demand for repairs created during the recession, expected increases in new car sales will more than offset the demand increase from consumers that held off visiting industry firms for service. New car sales will limit growth prospects for the industry, causing revenue to decrease in the five years to 2018.

The Car Body Shops industry is characterized by a high number of nonemployer firms, which tend to be sole operators and small family businesses. IBISWorld estimates that the market share concentration level has fallen over the past five years as franchisees exited the industry due to slow growth in consumer disposable income and, thus, reduced sales volume for small operators. The top four players derive a significant portion of their revenue from franchise agreements, but with franchisees going under, market share concentration has dropped.

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

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IBISWorld industry Report Key Topics

This industry provides repair 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 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 or call 1-800-330-3772.

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Gavin Smith
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