The CREW Webcast examines high-level industry issues via discussion with special guests. CREW is hosted by Matthew Ohrnstein, Erick Bickett and Vincent Romans. The latest episode explores the franchise option for collision repair facilities. CREW's guests for the episode were Tim Adelman, Executive Vice President Business Development, ABRA Autobody and Glass; David Byers, Chief Executive Officer, CARSTAR U.S.; and Paul Gange, President and Chief Operating Officer, Fix Auto U.S.

 

Matthew Ohrnstein led off the webcast by noting that the industry is largely composed of single unit independent and dealership repair facilities, independent and dealership multi-store operators and franchise systems. 

 

"In the UK and Canada, the collision repair franchise networks have grown to be among the largest market share players in the industry,” said Ohrnstein. “In Canada, for example, if a collision repairer is not part of a franchise system or large MSO, they're being increasingly challenged to participate in insurance company direct repair programs. However, in the U.S., the adoption of the franchise models has been somewhat slower.”

 

Canada is further along this road than our counterparts in the U.S., in both of the major consolidation trends. David Byers of CARSTAR U.S. delineated the two different types of consolidation as industry consolidation—larger organizations of shops, under various models—and insurance consolidation, the trend of insurers wanting to work with fewer, larger networks.  

 

“In terms of industry consolidation, we see that the economic environment has been very challenging for the Mom and Pops,” said Byers. “The second thing we're seeing is that there's just less opportunity for some of the independents. Given the consolidation that's going on in the industry, they have less ability to compete in this new MSO marketplace. In terms of insurance consolidation, what we're seeing is that the carrier is much more likely to want to work with fewer, larger MSOs."

 

For more information on the CREW Webcast, please visit crewwebcast.com.