Auto Care Insider Volume 110 - 25

-2%

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

Source: U.S. Department of Transportation

Congestion = Collisions

Roadway Travel Congestion Index, 2006-2016
(Ratio of Miles Traveled to Length of U.S. Roads)

Vehicle Miles Traveled
Per Mile of Road

The population growth and its resulting increase in the number
800K
of licensed drivers have fueled demand for highway travel, but
construction of new highways has been slow to keep pace with
750K
this trend. Following increased road congestion between 2004 and
2007, congestion declined slightly due to higher gasoline prices
700K
Annual Change in Miles Driven, 2003-2016
and the beginning of the recession in 2008. The years following
(Percent Change from Previous Year)
650K
the recession (2013-2016) saw another uptick in road congestion.
2016
More Collision
vehicles Repair
on U.S.Receipts,
roadways
at any given time and less room
600K
4%
$45.8 Billion (Billions of Retail Dollars)
'06 '07 '08 '09 '10 '11 '12 '13 '14
for safe maneuvering increases the likelihood for collisions.
3%
Sources: Auto Care Association, IHS Automotive, U.S. Department of Transportation

68.4%
$31.3B

15.2%2%

48K
46K
44K
$45.8 Billion

'15

'16

42K
40K

Historical data have been revised

$6.9B

1% %
8.6

$3.9B

7.8%

-1% $3.5B

WHO DRIVES THE COLLISION-2%REPAIR SECTOR?
'03

What's Being Fixed?
'16

'05

'06

'07

'08

Average Sales per Dealership-Operated Body Shop, 2006-2016
'09 '10 '11 '12 '13 '14 '15 '16

Vehicle Miles Traveled
Per Mile of Road

'15

'04

because they have reached a point where
the total number of shops specializing in
Source: U.S. Department of Transportation
$1,250K
their
total
repair
cost
exceeds
their
value.
collision repair dropped to 41,047 in 2016,
Dealership-operated repair shops
A vehicle's age has a significant impact
$1,180K
The
majority
of
all
collision
repair
jobs
are
when independent repair shops totaled
on the rate
at
which
different
collision
Independent paint and body repair shops
Other repair shops
NADA Industry Analysis Division
done
professionally. Bumpers (78.6 $1,110K
percent),
34,698 (85 percent of all U.S. collision
repair jobs
are performed.
In 2016, the Automotive glass
Dealership-operated
repair shops
repair shops
$1,040K
fenders
(77.5
percent),
doors
(72.5
percent)
repair
shops),
while
6,349
dealerships
highest
replacement
within
Sources:
Digital Auto Care rates
Factbook occurred
2018, U.S. Census
Bureau,
$970K
NADA Industry Analysis Division
and bumper covers (70.7 percent) are the
operated collision repair shops. The
vehicles
between three and seven years
$900K
0
20
40
most
popularly-cited
DIFM
collision
jobs
of
repair
shops'14 '15 '16
'07
'08 number
'09
'10collision
'11
'12
'13
old. Fewer post-collision repairs were
Roadway Travel Congestion Index, 2006-2016 '06 declining
performed
2016. toAmong
owners Source: NADA
can
be attributed to insurance companies'
(Ratio
of Miles in
Traveled
Length vehicle
of U.S. Roads)
2016
performed on older model year vehicles,
0
20
40
60
80
100
who perform their own
influence over collision repairs (Direct
800K
48K safer
repair work (DIY), replacing
Repair Programs), fewer accidents,
U.S. Collision Repair Shops, 2003-2016
headlamp bulbs (64.3
vehicles and lower vehicle scrappage
750K
46Kcoupled
percent) and headlamp
rates. Advances in vehicle safety,
48K
lenses (49.9 percent) are
with the adoption and development of
700K
44K
46K
the most frequent repairs.
crash avoidance technology mean that
fewer vehicles are involved in collisions.
650K
42K
44K
Where are They
Furthermore, as vehicle repairs have
600K
40Kbody
Being
more'16complicated, most
'06 '07
'08 Fixed?
'09 '10 '11 '12 '13become
'14 '15
42K
'03 '04 '05 '06 '07 '08 '09
shops
have
not
kept
abreast
of
the rapid
There
were 45,889
Sources: Auto Care Association,
IHS Automotive,
U.S. Department of Transportation
changing technology. All these factors
40K
collision repair shops in the
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
have resulted in the declining number of
U.S. in 2003. Since then,
Sources: U.S. Bureau of Labor Statistics, NADA Industry Analysis Division
collision repair facilities in recent years.

What's the Deal with Dealers?

'15

'16

Many dealers are turning to collision
repair as a key source of revenue with
high profit margins relative to new car
sales. Although the number of dealerships
that operate collision repair shops has
experienced a decline since 2003, the
average sales of those that remain has
been running about $1.1 million per shop
per year (see chart). The average sales
per dealership-operated body shop has
shown an oscillating trend since 2006
data. In recent years, this segment of the
collision repair business had few changes.

Average Sales per Dealership-Operated Body Shop, 2006-2016
$1,250K
$1,180K
$1,110K
$1,040K
$970K
$900K

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

Source: NADA 2016

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Table of Contents for the Digital Edition of Auto Care Insider Volume 110
