Smooth road: Industry revenue will rise due to increased disposable income

The majority of operators in the Car Body Shops industry in Canada have experienced a relatively smooth ride over the past five years. Increasing demand for repairs and discretionary services, such as window tinting and custom paint services, has boosted demand for industry services. Existing vehicles are increasingly being fixed and upgraded, bolstering industry revenue over the period as well. Rising consumer confidence has enticed consumers to spend more liberally. However, volatile commodity markets and shaky economic growth has deterred some consumers from seeking out cosmetic repairs over the period, which has tempered industry growth. Over the next five years, industry operators are anticipated to continue contending with the increasing safety of newer vehicles...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
35,261
Businesses
11,010

Industry Threats & Opportunities

  • Industry operators will continue to contend with the increasing safety of newer vehicles
  • Technological advancements will undermine industry performance
  • Mounting concern that Canada is at risk of another recession may hurt industry demand
  • Industry Report - Industry Locations Chapter

    The concentration of industry establishments is largely influenced by their proximity to downstream markets, as well as upstream suppliers of key inputs. Car body shop locations also tend to be highly correlated with population density. Provinces with larger populations tend to have a greater concentration of car body shops due to the correlation between population and the number of vehicles that are on the road and thus may be in need of repair. Hence, the majority of operators are located in Ontario, Quebec, British Columbia and Alberta.Ontario currently accounts for 34.4% of establishments and is the most densely concentrated region for this industry. Due to its significant share of the population (38.3%), Ontario is an attractive region for car body shop businesses. Que...purchase to read more.

    Additional Insights for the Car Body Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Body Shops Industry are

  • Provision of superior after sales service
  • Maintenance of excellent customer relations
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Number of businesses in the Car Body Shops industry impact industry performance..

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    What's in this report

    What is the Car Body Shops Industry?

    This industry includes establishments that are primarily engaged in providing repair, paint and customization work to the interior and body of passenger cars, trucks, vans and trailers. Some industry operators 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 Products
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Upholstery and interior repair
  • Merchandise sales
  • Detailing services and body conversions
  • Industry Activities
  • Automotive bodywork
  • Automotive painting
  • Automotive interior repair
  • Automotive glass tinting, installation and repair
  • Truck trailer body and paint repair
  • Van conversion
  • Antique and classic automotive restoration
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Number of businesses
  • Number of motor vehicle registrations
  • Total vehicle-kilometres
  • New vehicle sales

  • Current Performance
  • Technological advancements
  • Insuring demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Innovative challenges and industry pressures
  • Profitability
  • Table: Car Body Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Body Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling in Canada
  • Used Car Dealers in Canada
  • Property, Casualty and Direct Insurance in Canada
  • Couriers & Local Delivery Services in Canada

  • Key Selling Industries
  • Glass Product Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada
  • Structural Metal Product Manufacturing in Canada

  • Products & Services
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Other
  • Merchandise sales
  • Detailing services and body conversions
  • Upholstery and interior repair
  • Chart: Car Body Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals/households
  • Businesses
  • Public organizations and nonprofits
  • Chart: Major Market Segmentation for the Car Body Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Car Body Shops

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Body Shops Industry

  • Industry Globalization
    Fix Auto World Inc.,
  • Table: Fix Auto World Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car Body Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Body Shops Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total vehicle-kilometres (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Direct Repair Program (Drp)
  • An agreement between insurance companies and car body shops, where insurance companies refer claimants to a particular shop to get their car repaired.
  • Electronic Stability Control (Esc)
  • These systems selectively apply the vehicle's brakes or reduce the engine power to keep the vehicle moving in the intended direction, thus preventing loss of control.
  • Trim
  • Items that can be added to the exterior and interior of a car, for either aesthetic or functional purposes. Examples include leather seat upholstery and bumpers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Car Body Shops market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Body Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Body Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Body Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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