BY ALLISON ROGERS
The Romans Group has released its annual whitepaper, A 2019 Profile of the Evolving U.S and Canada Collision Repair Marketplace, which looks at current, historical and future trends for both the U.S. and Canadian collision repair industries.
“For the U.S. and Canada, the North American auto physical damage ecosystem and the entire world, 2020 will forever be seen as a year of significant disruption and structural change with far-reaching economic, social and political implications,” reads the report.
Despite a steady decline in the number of collision repair facilities operating in Canada over the past seven years, the report says the nation has seen its repair revenue grow. According to the whitepaper, the rise in repair revenue comes as a result of independent, dealer, banner and franchise network segment revenue and at the expense of smaller operators.
The whitepaper states that the top 10 collision network organizations—listed as CSN Collision Centres, Fix Auto, CARSTAR, CarrXpert, Boyd, Craftsman Collision, Kircmac, AutoCanada and Herbers, respectively—represent 76.1 percent of the industry’s revenue and 31.9 percent of the industry’s repair facilities.
While Canada has seen overall increases to repair revenue, the report does clarify that the “average revenue per location [in Canada] is considerably lower than the U.S.,” with the U.S. boasting a market size on a U.S. dollar basis 13 times the size of the Canadian target addressable market (TAM), and offering seven times more repair facilities than its northern neighbours.
In the realm of auto insurance, the Romans Group says both the U.S. and Canadian auto insurance markets are highly consolidated, “with the top 10 private carriers controlling the lion’s share of premiums and shouldering the majority of claims processed and settled.”
The group also states the U.S. private passenger P&C insurance industry, as well as the auto-only insurance segment, remain much larger in scale than the Canadian market for all other categories.
As for future implications for both the U.S. and Canadian sectors, the Romans Group says it expects to witness ongoing consolidation in the future, as well as continuations on the following trends: • Insurtech claims processing models reinforce insurers’ preferred business economics • Canada-U.S. trans-border market entrance by Collision Solutions Network and Pro- Color • OEM certification programs evolution • Post-COVID-19—achieving your escape and landing velocity requires resilient companies and resilient leaders
Nonetheless, the Romans Group believes in post-pandemic recovery across the board. “We believe the market segments profiled within our report will recover from the pandemic and continue to grow and expand their revenue base, both through organic growth and acquisition,” reads the report.
The full version of A 2019 Profile of the Evolving U.S and Canada Collision Repair Marketplace, which features 80 comprehensive pages of historical trends and future views, as well as 65 charts and graphs, can be purchased by contacting maryjane@romans-group.com.
“We believe the market segments profiled within our report will recover from the pandemic and continue to grow and expand their revenue base, both through organic growth and acquisition,” reads the report.
