First Research US Industry Profile

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Automotive Body, Paint, Interior & Glass Repair
SIC Codes: 7532, 7536
NAICS Codes: 81112
Last Quarterly Update: 2/25/2019
Companies in this industry are primarily engaged in providing automotive body, paint, interior, and glass repair and replacement services for passenger cars and light trucks. Major companies include Maaco, Pittsburgh Glass Works, Safelite Group (a subsidiary of Belron SA), and Service King Paint & Body (all based in the US), as well as Carglass and Belron (both in Europe).
With more vehicles crowding roads worldwide, demand for repair and replacement services also is expected to rise. China is the world's largest car market, followed by the US, Japan, India, and Germany. Emerging markets will dominate future growth for cars and car repair. India's car sales volume hit a record high of 4 million vehicles in 2017, up 10% from a year earlier. India is expected to surpass Japan in car sales volume by 2020, according to the Society of Indian Automobile Manufacturers.
The US automotive body, paint, interior, and glass repair industry includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $36 billion.
Competitive Landscape
Demand depends the number of cars on the road and on miles driven. Severe weather events such as hail storms and flooding, may trigger localized spikes in demand for auto body and glass repair, as well as paint services. The profitability of individual companies depends on convenient locations and effective marketing. Large companies can maximize use of expensive equipment, such as state-of-the-art paint booths, and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate less than 15% of revenue.
Competition includes other venues that provide specialized automotive services, including car dealerships and branches of chain stores such as Sears. An estimated 80% of all automotive repair work in the US is performed by independent shops, not factory authorized dealers, according to the Automotive Service Association (ASA).
Repair shops can expect a dramatic decrease in demand for repair services when more driverless cars take to the road. Fully autonomous cars are being tested on roads today, and the first commercially available semi-autonomous cars could be on the road in the next one to two years, according to Goldman Sachs' Cars 2025 report. Autonomous vehicles could reduce US auto accidents by 90%, according to consulting firm McKinsey & Co., which predicts mass adoption of auto-piloted vehicles beginning in about 15 years and initial implementations early next decade. Some newer cars already incorporate collision avoidance systems designed to prevent crashes and trips to the body shop.
Products, Operations & Technology
Major services include auto body repair (55%), painting services (20%), and glass repair and replacement (10%) for cars and light trucks. Other services ... plus:
Sales & Marketing
Finance & Regulation
Regional & International Issues
Human Resources
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Quarterly Industry Update
Industry Indicators
Business Challenges
Trends and Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Industry Websites
Glossary of Acronyms

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