Automotive Service & Collision Repair Industry Trends

More Cars, More Driving

From 1999 to 2004, the number of cars, motorcycles and light trucks (with two axles, four tires) in the US increased 10 percent to 234 million. The average annual mileage per vehicle increased 10 percent to 11,660 miles. With more vehicles and driving, demand for mechanical repair services has increased steadily.

Fewer Car Crashes

There are an estimated 6.5 million car accidents in the US each year, according to some sources. Despite an increase in total vehicle miles driven, the number of car collisions has decreased. Demand for body shop repairs has been slowly declining in volume, as car manufacturers focus more on auto safety. However, as the price of autos and auto parts increases, the cost of repairing them also increases, so body shops are generally getting more revenue per vehicle repaired.

Technical Education

Certification of body shop technicians is now required by most insurance companies, and is becoming more widespread among mechanical repair shops. The most common certification is Automotive Service Excellence (ASE). As more repair shops specialize, they're more likely to get certification from car manufacturers.

Anti-Steering Legislation

When insurers steer repair business to direct repair program (DRP) shops, smaller independent repairers lose revenue. Auto insurance companies increasingly control the flow of business to the auto repair industry, prompting some states to consider legislation that would prevent "steering."