Canadian collision shops are under pressure and most believe it's getting worse. Insurer demands, rising labour costs and uncompensated administrative work are the top culprits, according to the first survey for our CRM Collision Intelligence Index.
The June 2026 survey asked Canadian shop owners and managers how profitability is tracking and what is driving the pressure. The results put numbers to what the industry has been feeling.
Profitability: The Broad Picture
Sixty-eight% of respondents reported weaker profitability compared to 12 months ago. That number breaks down as follows:
Who Responded
Responses came from every major region in Canada, with Ontario accounting for roughly one-third of the total.
Independents made up the largest single group at 40% of respondents, followed closely by franchise and banner collision centres at 36%, and MSOs at 20%.
What Is Driving It
Respondents were asked to identify the pressures most affecting profitability. The results reflect compounding challenges and most shops selected multiple factors:
Insurer pressure and labour costs were selected by roughly equal proportions, 64 and 62% respectively, and in most responses they appeared together.
Technician shortages affected nearly half of respondents. Parts delays and equipment investment pressure rounded out the top pressures at 36 and 30%.
The following are direct quotes from respondents and reflect the views of individual shop owners and managers and do not represent the editorial position of the publication
In Their Words: Administration
"Rising administration costs and uncompensated clerical work are the single biggest operational frustrations for collision shops. Insurance carriers continue to shift their administrative burden onto shop estimators and managers without adjusting labour rates or administrative allowances. This forced labour directly erodes shop profitability while keeping the insurance customer satisfied."
In Their Words: Labour and Technician Supply
"The biggest operational challenge right now is balancing investment in technology, equipment, training, and staffing while maintaining profitability. Modern vehicle repair requires continuous reinvestment into ADAS calibration, EV readiness, OEM procedures, and skilled technicians. Labour costs and administrative demands continue to rise faster than compensation structures from insurers."
In Their Words: Compensation and Rate Structures
"Insurers do not understand the importance of proper compensation. Shops cannot develop employees, purchase tools and training without capital. Autobody technicians have a higher skill level than mechanics. Body rates from insurers are generally 55–65% of mechanical labour rates. Time for change but shops need to make a stand."
What to Watch
The data in this survey points to several indicators worth tracking in the months ahead.
The gap between technician wages and insurer labour rates is the most direct measure of shop viability. As the distance between those two numbers widens, the business case for remaining in DRP relationships — or in the trade at all — changes.
The Collision Intelligence Index will continue tracking these indicators through 2026 and beyond. Survey data, methodology and full results are available to industry stakeholders on request. A new survey starts next week.
The Collision Intelligence Index is an ongoing reader initiative from Collision Repair magazine. Responses reflect the views of individual shop owners and managers and do not represent the editorial position of the publication. This survey was conducted May 26–June 8, 2026. With an estimated 4,000 collision repair facilities operating in Canada, this sample of 88 produces a margin of error of approximately ±10 per cent at a 95% confidence level; results should be interpreted as directional industry intelligence rather than census data. Sample size and representativeness will grow with each wave of the Index.
