The Future of the UK Car Body Repair Market to 2024: A Continued Decline in Repair capacity will Lead to Increased Repair Costs

DUBLIN, April 12, 2019 /PRNewswire/ -- The "The Future of the UK Car Body Repair Market 2019-2024" report has been added to ResearchAndMarkets.com's offering.

The Future of the UK Car Body Repair Market 2019-2024, fully updates the in-depth coverage of the structure, volume and dynamics of the car body repair market in the UK. It analyses demand - and supply-side data from 2007 to date and forecasts future trends to 2023. Detailed analysis and commentary is provided.

A comprehensive report on the UK Car Body Repair Market, warns that a continued decline in repair capacity will lead to increased repair costs over the next five years.

The number of UK accident repair centres (car bodyshops) has fallen by 20% over the last decade from 3,950 in 2008 to 3,162 in 2018, and the author predicts a further decline over the next five years.

A shortage in repair capacity, combined with a 33.5% overall increase for insurance-related repair costs over the past five years, presents a significant risk for motor insurers profits in the years ahead.

With the number of bodyshops continuing to decline, it appears imperative that insurance companies and claims solutions providers adopt a strategy to truly work with their supply chain to secure repair capacity over the forthcoming years. It's inevitable that repair costs will continue to rise but we believe that insurers need to act responsibly and focus their attention more on securing quality repair capacity for the safe repair of a vehicle and to provide the customer service aspects of a motor claim.

The author predicts that insurance-related repair costs will increase by a further 14% of the next five years. "We've taken a somewhat conservative view," says Bull. "Given the above-inflation increase that has taken effect over the past five-years, we believe that 14% is a conservative uplift that may well be exceeded. However, such above-inflationary repair cost pressures cannot continue at current rates, despite parts pricing and paint price increases, as accident damaged cars may become subject to becoming economic write-offs if the repair cost becomes too great."

The cost of parts alone on insurance-related repairs has risen by 40% in the past five year period, which presents a concern for motor insurers. New technologies in vehicle design, including Advanced Driver-Assistance Systems (ADAS), have had a bearing on driving up repair costs. A vehicle's integral adaptive features, such as automate lighting, adaptive cruise control, lane departure warning systems, automatic lane centering, and so on, require technical repairs to be completed by highly competent staff and to be calibrated following an accident. This also presents bodyshops with a challenge due to a skills shortage, which only adds pressure onto labour costs.

This is why it's critical for insurers to work with their body repair partners as it's in everybody's interest for bodyshops to attract and retain high calibre staff, ensuring that an insurer's customer gets a safe repair.

Key Topics Covered:

Section 1 - Preface

• About
• Vehicle Body Repair Research
• Primary and Secondary Research Sources
• Additional data suppliers
• Methodology
• Copyright Notice

Section 2 - Executive Summary

Section 3 - Report Sponsors and Partners

• Reports Sponsors and Partners
• 3M
• Audatex UK/Solera
• Auto Body Projects
• Bodyshop Management Solutions
• CAPS Consortium
• Enterprise Rent-A-Car
• Industry Insights
• The Innovation Group
• Morelli Group
• PPG
• Thatcham Research

Section 4 - Market Background and Developments

• The UK Economy - an Introduction
• The UK Financial Recession
• The European Union (EU) Referendum and Brexit
• The UK Economy - an Overview
• Gross Domestic Product
• Low growth outlook
• Disposable income, debt and savings
• The impact of debt on motor finance
• Average earnings
• Unemployment
• Consumer confidence
• Car Ownership Trends
• Car ownership by households
• Car ownership by registered keeper
• Travel by mode of transport
• Driving licence holding
• Annual mileage travelled by car
• New Car Registrations and Used Car Demand
• The size of the car parc
• New and used car sales
• Auction prices
• Light Commercial Vehicles
• Length of car ownership
• Licenced cars by segment
• Future Trends

Section 5 - Market Size and Trends

• Total Market Size
• Total Market Value
• Total Market Volume and Average Repair Costs
• Insurance-Funded and Private Car Repairs
• Vehicle repair segmentation
• Labour, Parts and Paint
• Labour expenditure
• Parts expenditure
• Paint and materials expenditure
• SMART Repair
• Leading UK Independent Car Body Repairers
• Leading UK Franchised Dealer Car Body Repairers
• Independent Body Repair Networks
• Fix Auto UK
• National Accident Repair Group
• Selsia Vehicle Accident Centres
• Vizion Network
• Insurance Company Owned Car Bodyshops
• Car Body Repair Supply Chain
• Bodyshop Management and Estimating Systems
• General Data Protection Regulation (GDPR)
• Paint and Distribution

Section 6 - Bodyshop Market Survey

• The Survey
• Business Type
• Future Investment
• Parts - Aftermarket Parts
• Paint and Distribution
• Paint schemes within bodyshops
• Verbatim comments - Yes for budget paint brand
• Verbatim comments - No for budget paint brand
• Paint distribution suppliers
• Labour Charge-out Rates
• Labour - insurance companies
• Labour - accident management companies
• Labour - retail customers
• Verbatim comments - labour charge-out rates
• Business Confidence
• Verbatim comments - contract terminations
• Greatest opportunities and threats
• Verbatim comments - greatest concerns
• Changing Technology
• Business Overview
• Apprentices
• Courtesy cars
• Industry standards
• Vehicle manufacturer approvals
• Work diversity
• Workshop size and staff
• Repair analysis
• Average hours per repair and key-to-key time
• Insurance excess payments
• Closing comments
• Verbatim comments - closing comments

Section 7 - Repairs By Vehicle Make

• Repairs by Vehicle Make
• Average Repair Cost Trends
• Repair Volume by Vehicle Make
• Car repair volume % by vehicle manufacturer
• Repair Costs by Vehicle Manufacturer
• Average repair costs by manufacturer
• Average labour cost within repairs
• Average parts cost within repairs
• Average car repair costs by vehicle manufacturer
• Average paint and materials cost within repairs
• Charts of Repair Costs by Vehicle Make
• Average segmented car repair costs by vehicle manufacturer ()
• Average segmented car repair costs by vehicle manufacturer (%)
• Average labour repair costs by vehicle manufacturer ()
• Average labour repair costs by vehicle manufacturer (%)
• Average parts cost per repair cost by vehicle manufacturer ()
• Average parts cost as a % of repair costs by vehicle manufacturer
• Repair Gross Margins
• Gross profit by make of vehicle
• Overall gross profit by make of vehicle
• Labour gross margins
• Gross margins () per car repair by vehicle make
• Total gross car repair margins (m) by vehicle make

Section 8 - Vehicle Systems and New Technologies

• Changing Vehicle Technologies
• ADAS Sensors and Systems Growth
• Battery Package Strategy (Impacting Materials Strategies)
• Electric Vehicle User Cases Urban To City
• 48v Belt or Integrated Starter Generators and Potential 12v Omission

Section 9 - UK Motor Insurance Trends

• UK Motor Insurance Trends
• Market Background
• Regulation
• Profit and loss
• Combined operating ratio (COR)
• Gross Written Premium (GWP)
• Motor Insurance Policies
• Motor insurance premium
• Motor insurance premium influencers
• Price comparison websites (PCWs)
• Ogden discount rate
• Motor insurance claims
• Trends in Private and Fleet Motor Claims
• Total loss vehicles
• Motor vehicle salvage re-categorisation
• Total loss vehicles by category
• Motor Insurance Fraud
• Uninsured drivers
• Motor insurance complaints
• Dual pricing
• UK Market Leading Motor Insurers

Section 10 - Strategic Outlook and Future Industry Trends

• Strategic Outlook and Future Trends
• Motor insurers
• Bodyshops
• The Digital Age
• Artificial intelligence (AI)
• Insurance company challenges
• Motor Claims and the Consumer Revolution
• Bodyshop challenges
• Economic Outlook
• Interest rate risk
• Repair Capacity and Demand
• Appendix - PowerPoint Executive Summary
• The Future of the UK Car Body Repair Industry
• About this report
• Market background
• Motor insurance performance
• New and used car sales
• LCV sales
• Age of car parc
• Mileage driven
• Motor claims rate
• Average car job split
• Number of primary bodyshops
• Market value and volume
• Repair capacity v demand
• Bodyshop confidence
• Bodyshop opportunities
• Bodyshop threats

Companies Mentioned

• 3M
• Admiral
• Ageas
• Alfa Romeo
• Allianz
• Audi
• Audatex UK/Solera
• Aviva
• Axa
• Axalta
• BASF
• Bodyshop Management Solutions
• BMW
• CAPS Consortium
• Chrysler
• Citroen
• Covea
• Cromax
• DS
• Dacia
• Daewoo/Chevrolet
• Daihatsu
• Direct Line Group
• Enterprise Rent a Car
• Esure
• Fiat
• Ford
• Glasurit
• Hastings
• Honda
• Hyundai
• Infiniti
• Innovation Group
• Jaguar
• Kia
• LV=
• Landrover
• Lexus
• Markerstudy
• Max Mayer
• Mazda
• Mercedes-Benz
• Mini
• Mitsubishi
• Morelli Group
• Nexa
• NFU
• Nissan
• PPG
• Peugeot
• Porsche
• R-M
• Renault
• Rover
• RSA
• Saab
• Seat
• Sherwin Williams
• Skoda
• Smart
• Spies Hecker
• Subaru
• Suzuki
• Thatcham
• The Innovation Group
• Toyota
• Vauxhall
• Volkswagen
• Volvo
• Zurich

For more information about this report visit https://www.researchandmarkets.com/r/onk0hn

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