Consolidators set to double presence
The top four consolidators in the US represented 11.3% of the total collision repair industry size for 2015 with estimates that by 2020 they could double their marketshare.
That is the verdict of The Romans Group LLC which has published its 10th anniversary annual research report on the North American Collision Repair Marketplace.
The report, which is based on four US segments: four top independent consolidators (Caliber, Service King, ABRA and Boyd); ≥$20 million multiple-location independent and dealer operators (MLOs); franchise and banner groups; and since 2012, the $10-$19 million MLOs, suggests that in combination these four segments could represent almost 45% of the collision repair industry by 2020. Of note is that the four independent consolidators represent 70% of the revenue processed in 2015.
The report also highlights how the Canadian market continues to consolidate with the franchise and banner segment now representing a significant 52% share of the CAD $2.9 billion private insurance auto market. When including the ≥$10 million MLOs in Canada, the combined larger segment has a significant 71.8% of all the private passenger insurer and consumer-paid market. Collision Solutions Network, Carstar, Fix Auto and CarrXpert were the four top ranked repairers in 2015.
Both countries have seen a continued downtrend in the number of collision repair facilities, although this downturn has slowed in recent years. In 2006 there were approximately 45,000 US collision repairers averaging $666,000 in revenue annually versus about 32,900 locations in 2015 averaging $1,036,474 in annual revenue. Canada’s repair location population has seen a reduction of more than 50% since 2012, with 4,900 locations averaging about $427,959 in 2015.
Vincent Romans said, ‘It has been quite a ride to watch what has transpired during the past decade, not only within the collision repair industry, but throughout the entire auto physical damage ecosystem. The consolidation, convergence, and the structural changes we are witnessing within businesses, industry segments and markets, as we know them today, are now significant market factors to consider as part of our future planning. The high velocity and breadth and depth of change, coupled with the seemingly relentless introduction of innovative and disruptive products, services and business models, has required us to maintain an intense vigilance, to stay constantly informed, and to learn and understand as we consider, adopt, avoid, or leverage these transformative or disintermediating forces in order to remain relevant and competitive.’
The full report – A 2015 Profile of the Evolving North American Collision Repair Marketplace – is now available. Click here for further details. (firstname.lastname@example.org)