In Black and White: Romans Group releases 13th collision industry whitepaper

Toronto, Ontario — The Romans Group LLC has released its annual Profile of the Evolving U.S. and Canadian Collision Repair Marketplace. The 13th edition of the whitepaper, this one was released on December 30, 2019, and covers the state of the North American collision repair sector in 2018.

The full report, which runs at 80 pages and includes 65 charts, is available through The Romans Group LLC.

Broadly optimistic about the industry’s growth potential, the report was clear that–in attempting to read the industry’s tea leaves, the analysts recognized that the auto physical damage industry is at a “complex intersection” in North America.

“…we see all segments related to the auto physical damage ecosystem managing the benefits and risks associated with the continued migration from traditional legacy businesses to a multitude of digital new-age business models. Adjusting and normalizing to this new age marketplace is driving accelerated change, creating uncertainty, and unmasking opportunities for growth while sometimes facilitating a planned business and industry exit or forcing reluctant capitulation.”

In its coverage of the Canadian repair sector, the report highlighted some of the more significant distinctions between the sector in Canada, and in the United States.

“The U.S. collision repair market size on a U.S. dollar basis remains 15 times the size of the Canadian market, and there are almost 7 times more repair facilities for the total addressable market in the U.S.”

According to the abstract released of the full paper, Canada’s collision sector is underperforming compared to the American sector.

“The average revenue per location is considerably lower than the U.S., and severity for both repairable and total loss continues to hold steady with an upward trend bias for the immediate future.”

This is particularly true of independent operators.

“We do see the combined ≥$10M MLO independent, dealer, banner, franchise network segment revenue increasing at the expense of smaller operators,” the abstract states. “

The abstract also says that MLO independents, dealer-owned shops, and franchise network segment now constitutes 30 percent of the number of locations, and absorbs 77.7 percent of the industry’s revenue.

The to purchase a full copy of the report, which runs at 80 pages and includes 65 charts, contact Mary Jane Kurowski of The Romans Group LLC. She can be reached at maryjane@romans-group.com.

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