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SUMMARY
Increasing Number of Collisions is Being Offset by the Influence of
Insurance Companies on Replacement Body Collision Aftermarket
The number of reported collisions has been on the rise, ranging between 9
million and 13 million annually. Estimates suggest that the number of
unreported collisions is also climbing every year and could represent an
additional seven million to eight million annually. Despite this trend, body
collision repair shops report a decline in the frequency of repair jobs,
increasing the importance of the quotation process and tipping the balance of
power in favor of insurance companies. Rising insurance premiums are
restraining many people, who have been involved in accidents, from making
claims. The high degree of involvement of insurance companies in the overall
dealing is particularly detrimental to the interests of repair shops, as their
position of power creates a highly competitive bidding situation for each job.
This Frost & Sullivan research service provides an overview of and outlook for
the North American replacement body collision aftermarket. The study focuses
on light vehicle applications including passenger cars and light trucks. The
research service covers six product segments including bumper/bumper fascia,
doorframe, front fender, grill, quarter panel, and rear (trunk, hatch, lift
gate, doors). The information in this research service will enable companies
to align their positioning strategies to benefit from the changing market
conditions and obtain maximum return on investment.
Consolidation of Repair Facilities Heightens Competitive Atmosphere
Between 1997 and 2004, the number of body collision repair facilities, either
independent or dealer-affiliated, dropped by approximately 3.5 percent. The
main factor behind the decline in the number of shops is a dramatic market
shift toward consolidation. Modern vehicles are manufactured to exacting
specifications, use higher cost components that require expensive equipment
and skilled labor to replicate the original equipment (OE) form, fit, and
function of the vehicle. To optimize equipment and labor investments, shops
have shifted their marketing position from emphasizing brand competence to
highlighting repair skills in all makes and models.
"The high cost of equipment, declining availability of skilled workers, and
the need to concentrate on resources to maximize the economies of scale have
resulted in the consolidation of collision repair facilities," says the
analyst of this research service.
Repair Market and Component Suppliers Look to Even the Balance of Power
with the Insurance Companies
The goal of insurance companies is to minimize overall repair costs. With
insurance companies representing the majority of automotive collision repair
revenues, they have tremendous bargaining power. Legislation is in place to
ensure that the consumers get the type of service and components they need;
however, consumers are still quite complacent when it comes to dealing with
collision repairs. Insurers also hold the upper hand in the relationship
between them and repair facilities. The insurer determines at what cost point
vehicles are scrapped.
Through a series of strategies such as increasing company size through
consolidation, brand building for collision repair services, pushing for
access to the total repair job, and stronger commitment to OE components, the
repair market and component manufacturers are attempting to increase the
equity of their products and services.
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY
Market Overview
- Introduction (Power Point Presentation)
2 TOTAL NORTH AMERICAN COLLISION REPLACEMENT BODY PANEL AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Industry Challenges
- Market Engineering Analysis
Market Drivers and Restraints
- Market Drivers
- Market Drivers Continued
- Market Drivers Continued II
- Market Restraints
Market Forecasts and Trends
- Revenue and Unit Shipment Forecasts
- Trends by Geographic Region
- Trends by Product Category
- Demand Analysis
- Price Analysis
Competitive Analysis
- Product Analysis
- Competitive Structure
- Distribution Channel Analysis
Market and Technology Trends
- Collision Shop and Personnel Trends
- Role of Vehicle Design
Frost & Sullivan Awards
- Growth Strategy Leadership Award
- Customer Service Leadership Award
- Business Development Strategy Leadership Award
3 NORTH AMERICAN COLLISION REPLACEMENT FENDER AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
4 NORTH AMERICAN COLLISION REPLACEMENT BUMPER AND BUMPER FASCIA AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
5 NORTH AMERICAN COLLISION REPLACEMENT HOOD AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
6 NORTH AMERICAN COLLISION REPLACEMENT GRILL AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
7 NORTH AMERICAN COLLISION REPLACEMENT DOOR FRAME AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
8 NORTH AMERICAN COLLISION REPLACEMENT QUARTER PANELS AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
9 NORTH AMERICAN COLLISION REPLACEMENT REAR ENTRY AFTERMARKET
Market Overview and Definitions
- Market Overview and Definitions
- Market Engineering Analysis
Market Forecasts and Trends
- Revenue Forecasts
- Pricing Trends
- Trends by Vehicle Type
Competitive Analysis
- Competitive Structure
- Distribution Channel Analysis
10 APPENDIX
Acronyms and Abbreviations
- Acronyms and Abbreviations
Equation
- Conversion Equations
- Compound Annual Growth Rate
- Currency Exchange Rates
11 DECISION SUPPORT DATABASE
Decision Support Databases
- Personal Disposable Income
- Number of Automotive Technicians
- Car Exports
- Steel Consumption
- Number of Dealerships by State
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