By 2021, the auto body industry’s four consolidators – ABRA, Boyd Group, Caliber and Service King – could represent 25 percent of the collision repair market, according to a new report from The Romans Group.
The consolidators aren’t just gobbling up multiple-location operators anymore, the Romans Group explains in its 11th annual industry whitepaper, “Advancing Our Insights into the 2016 Collision Repair Marketplace.”
“Their network development strategy now includes a combination of continued aggressive organic growth and selectively building out and expanding existing markets to include ‘cluster and tuck ins’ [that] are based more on single‐location acquisitions, brownfields and greenfields,” the Romans Group concludes in its new whitepaper.
Overall, industry contraction has stabilized, “resulting in a slowdown in the rate of loss of collision repair facilities nationally.” The Romans Group attributes that to an increase in accident frequency and repair severity.
“Nevertheless, we remain certain of the path forward involving the continued long‐term, multi‐segmented market’s structural transformation throughout the entire auto physical damage ecosystem for all companies providing products, services, software, and technology that in any way touches cars in the U.S. and Canada,” the Romans Group asserts in the whitepaper.
