Digital Auto Care Factbook & Lang Annual 2016 - (Page 60)

BODYSHOP BUSINESS INDUSTRY PROFILE: 2013-15 2013-14 Or shops that specialize in one particular automaker's vehicle? At least one expert finds fault in this logic. "I've heard some multi-location shops say that maybe shops will specialize in certain makes," says Mitch Becker, technical writer for BodyShop Business and technical instructor for ABRA Auto Body & Glass. "It does make sense that one shop would handle the Fords and one the GMs, but the problem is that other Boyd manufacturers will be following suit and ABRA recommending the same or similar proceService King dures for repairs." Speaking of proceCaliber dures, it was only three years ago when 25 50 the three major trade associations in the industry - the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers - jointly proclaimed that the OEM repair procedures should be the standard of repair. With the increasing use of aluminum, that declaration is now taking on greater importance. And what about the consumer? Ford's introduction of the F-150 made quite a splash over national media outlets, and no doubt truck owners took note. Plus, it was announced in January that the OE Roundtable had created a website called www.crashrepairinfo.com to educate consumers on what it takes to repair their vehicles properly. Will this signal a tide change in consumers' knowledge of what it takes to repair their vehicle properly? Will they be more selective in the shop they choose? Will they use Ford's "shop locator" to find a certified dealer shop or recognized independent shop? Evidence of more exotic materials being introduced in vehicles? How about BMW's carbon fiber chassis, aluminum frame rails and thermo plastic outer panels on the i3 and i8 electric vehicles that will soon be entering the marketplace? And we haven't even talked refinishes yet. The newer, more vibrant, Reproduced with permission from Babcox Media. 60 2016 Digital Auto Care Factbook Copyright © 2015 Auto Care Association translucent finishes that are becoming increasingly popular with the OEMs are challenging shops in the paint department from a matching standpoint in that it's difficult to match the factory's application. Blending isn't really an option with opaque basecoats, because every coat that overlaps the existing panels will make that color different. opportunities for consolidators as well (60 percent of shop owners/managers are aged 50-64, far and above any other age category in the industry)? The answers are probably yes and yes. Then again, buying a franchise or aligning with an OEM might provide a new lifeline for shops struggling with the decision to close up, sell or forge ahead into the future. Overcapacity 75 100 125 150 175 Number of Stores But there's no need to panic. Industry veterans who have witnessed radical changes in the industry before (full frame to unibody construction, handwritten to electronic estimates, solventbased to waterborne paint, etc.) predict that most repairers will take this new shift in stride and adapt as necessary. Consolidation Since our last State of the Industry report in 2011-12, the pace of consolidation has quickened as most experts in the industry predicted. One needs only to look at the number of stores of the Big Four (not including franchise models) - see graphic above. This second wave of consolidation in the collision industry is being driven by industry dynamics and investor appetite. The difference between this wave and the first wave, which occurred in the late 1990s, is that insurance companies are now fully engaged, and their own strategic objectives are now in sync with the benefits of consolidation. Will the push toward making aluminum mainstream provide more opportunities for consolidators to expand by acquiring shops unwilling to make the necessary investment in tooling and training? Will aging shop owners ready to exit the industry provide more The market is still overcapacity, with some experts believing that 20,000 to 25,000 shops could Ⅲ 2006 handle the current Ⅲ 2012 workload available. Ⅲ 2014 The repair pool 200 225 250 continues to decline for a number of reasons: teenagers' disinterest in getting a driver's license; Millenials (the largest segment of the U.S. population) bogged down with college debt and/or unemployed and opting to put off buying a car; the second largest segment of the U.S. population, Baby Boomers, who are considered safer drivers; increasing accident avoidance technology (NHTSA announced last month that "backup cameras" will be required on all vehicles, phasing in May 2016 to 100 percent completion by 2018); safer roads; less miles driven; more total losses due to higher salvage values; higher deductibles and more. Still, harsh winter weather in many parts of the country prompted one association leader to remark that the general aftermarket was poised for a great year: crashed vehicles needing to be repaired, shocks and struts needing to be replaced (potholes), etc. Insurer Preferences Who gets the work is another topic. There are those who believe owning the insurer is key to referrals and have tailored their business model to that philosophy. Insurance work is the basis for most MSO models, and insurers welcome working with MSOs for a variety of reasons: strong brand, single http://www.crashrepairinfo.com

Table of Contents for the Digital Edition of Digital Auto Care Factbook & Lang Annual 2016

Auto Care Association Market Intelligence Committee
Economic Indicators
Key Economic Indicators
National Debt
Aftermarket Dynamics
Industry Employment
Technician Employment and Wages
What Do Our Members Think?
Auto Care Association – Lang Market Comparison
BCI Summary
State of the Auto Care Industry
U.S. Motor Vehicle Auto Care Industry
Introduction to the Channel Forecast Model
2014 to 2018 Forecast Assumptions
U.S. Motor Vehicle Auto Care Industry
Auto Care Sales History and Forecast 2007 to 2018
Auto Care Sales by Distribution Channel
Auto Care Segmentation
Auto Care Service and Retail Outlets
Auto Care Service and Retail Outlet Analysis
Program Distribution Summary
Retail Distribution Summary
e-Tailing
Financial Benchmarks
Financial Profiles of Select Auto Care Companies
Select Auto Care Transactions
Auto Care Industry
Consumer Profile
Replacement Rates for Motor Vehicle Parts and Jobs
Top 10 Replacement Rate Categories By Vehicle Age
Tool and Equipment
Auto Care Industry Segments
Medium And Heavy Duty Truck Industry
Sales of Replacement Tires
Paint, Body and Equipment
BodyShop Business Industry Profile: 2013-14
U.S. Total Motor Vehicle Population
Vehicle Registrations and Usage
U.S. New Motor Vehicle Registrations
Top 10 Light Vehicle Registrations
Hybrid Vehicles
Vehicle Operating Costs
Miles Driven vs. Gasoline Affordability
Gasoline Affordability and Fuel Consumption
Crude Oil and Diesel Fuel Costs
State Summary Statistics
State Summary Statistics
Global Auto Care Industry
Global Economic and Automotive Data
U. S. Trade Data for Selected Motor Vehicle Products
U. S. Trade Data By Country
Canadian Auto Care Industry
Glossary and Reference
Mexican Auto Care Industry
Chinese Auto Care Industry
Glossary and Terms
NAICS Definitions
Auto Care Data Resources
Auto Care Data Resources
Auto Care Association Market Intelligence
Auto Care Association Market Intelligence
Harmonization of Auto Care Industry Data
2016 Lang Aftermarket Annual
Introduction
Aftermarket Highlights
Executive Summary
Aftermarket Size
Product Sales Analysis
Service Market
Service Market Outlet Performance
Do-It-Yourself Market
Do-It-Yourself Market Outlet Performance
Aftermarket Analysis by Type of Vehicle
Vehicle Age
Distribution Channels
Aftermarket Outlet Analysis
Purchased Service
Vehicle Analysis
Accessories and Specialty Equipment Volume
Market Dynamics
Glossary of Aftermarket Terms
Appendix

Digital Auto Care Factbook & Lang Annual 2016