By Denise Caspersen
The collision repair sector is garnering more of the spotlight lately. Currently, the Automotive Service Association is advocating legislation prohibiting insurance company ownership of collision repair businesses. ASA also is advocating notice and consent mandates for aftermarket crash parts. Seventeen percent of registered vehicles are expected to need collision repair services this year. That's approximately 36,720,000 vehicles.
Before you get too excited, remember that 15 percent of these will be totaled or considered totaled. This percentage has increased from 7 percent a few years ago. And another 28 percent of owners will decide to live with their vehicle's bumps and neglect the repairs. That's also up from 24 percent. So, in the end, collision repair businesses can expect about 21 million repairs generating $37,468,080,000 in total sales.
These market percentages come from the Collision Repair Industry Insight annual State of the Industry report. Collision business owners can also apply those percentages to their local market.
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Stat Corner is written by Denise Caspersen, ASA's research management specialist. She can be reached at (800) 272-7467, ext. 236.
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