Page 50 - Australasian Paint & Panel Magazine Sep-Oct 2018
P. 50

IBIS GLOBAL REPORT
Advancements in vehicle complexity and accident avoidance technology are two trends that will continue to have significant impact over next few years.
Repair shop monitoring is primarily performed by insurance companies. While labour laws are mandated at the federal and provincial levels, these rules relate more to shop safety and the wages of low-skilled employees than any oversight of the vehicles themselves. While Canadian Common Law has not yet had cause to rule on a case similar to the John Eagle case in the US, it is generally accepted that a bodyshop could be found responsible for improper repairs leading to death or injury.
Advancements in vehicle complexity and accident avoidance technology have pushed Canadians towards buying newer vehicles, and bodyshops to finding better ways to fix them. While there has been a precipitous dip in the number of vehicles that require repairs in the last 20 years, the increased fees required to fix more specialised vehicles have had an overall positive impact on the bottom line of repair facilities.
There is a continued shortage of qualified technicians entering the business. An issue in Canada since the late 1980s, the average age of technicians is now about 44, compared to an industry-wide average of 37 in 1997.
The biggest news in the Canadian market has been the acquisition of the Ontario-based banner Assured Automotive by a Manitoba-based The Boyd Group. More than doubling its Canadian presence, the $193.6m sale saw another 68 locations come into the firm’s portfolio bringing its total number of Canadian shops to 110. It also has 474 locations within North America.It should be noted that there are also a number of very large regional operators: Craftsman Collision operates around 45 sites, primarily in British Columbia (BC). Speedy Collision operates 24 collision centres on a network model and was recently acquired by Belron Canada. We’ve also seen the national roll-out of CCS, a dealership-only collision repair network operated by Consolidated Dealers, and CarrXPert, a network of new car dealerships and dealer authorised collision centres. As of September 2016, CarrXpert offered support to 500 dealerships and 200 collision centres.
While networks and franchise operations have grown considerably over the past decade, the majority of shops are still independent, single location operations.
50 PAINT&PANEL September / October 2018 www.paintandpanel.com.au
FACTS & FIGURES
Population 36,963,854
GDP $1,535,768m
Number of people who hold a full driving licence 25 million Total vehicle parc 33,771,855 (Statistics Canada 2017) Average vehicle age 7.4 years
TOTAL NEW ROAD VEHICLE SALES 2015: 1,939,517
2016: 1,983,745
2017: 2,076,970
Number of alternative fuel vehicles registered 32,482
TOP THREE MANUFACTURER BRANDS BY VOLUME SOLD (2017) 1. Ford (14.7%)
2. Toyota (9.8%)
3. Honda (8.7%) )
TOP THREE MODELS SOLD (2017) 1. Ford F-Series: 155,290
2. Ram Truck: 98,465
3. Honda Civic: 69,030
AVERAGE MOTOR INSURANCE PREMIUM AND EXCESS/DEDUCTIBLE
Average annual premium across Canada is $1,100, though the rate in Ontario, around $1,500, is significantly higher
Number of reported road collisions per annum
18,404 fatal or serious collisions in 2016, other accidents are not recorded but estimated at around 2 million
Number of collision repairs per annum 2.2 million
Total accident repair market value $3.1bn
Insurance approved collision repair networks in operation Yes Insurance owned collision centres in operation No
OEM approved collision networks in operation No
Vehicle manufacturer owned collision networks in operation No Accident management companies active within market Yes Total number of collision repair operators Around 3,500 Number of collision repair centres (static sites dedicated to collision repair) Approximately 4,500
TYPES OF COLLISION REPAIR CENTRES Independents: Yes
Dealer: Yes
Networks: Yes
Group/multi-site operators (MSO): Yes Franchise operators: Yes
LARGEST OPERATORS BY NUMBER OF SITES
1. CSN Collision Centers/Carrossier ProColor:
355 locations in Canada.
2. Carstar: more than 280 locations in Canada.
3. Fix Auto: more than 250 locations in Canada.
Average cost of repair Approximately $930
Average labour rate $45.13/ph
Mobile collision repairers in operation Yes
Mobile SMART repairers in operation Yes
Total accident repair market value Approximately $4.4bn (2017) including both private and public insurance provinces.


































































































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