THE FUTURE OF THE CAR BODY REPAIR MARKET IN THE UK

Transcription

1 THE FUTURE OF THE CAR BODY REPAIR MARKET IN THE UK Published by: Trend Tracker Limited 116 High Street, Chapmanslade, Westbury Wiltshire, England, BA13 4AW Tel: Fax: Website:

2 CONTENTS Page No. Section 1 Preface 1 About Trend Tracker Limited 1 Car Body Repair Research 1 Primary and Secondary Research Sources 1 Other data suppliers Methodology 2 2 Copyright Warning 2 Section 2 Executive Summary 3 Section 3 Market Background 5 Market Drivers 5 The UK Economy 6 Repercussions of the 2007 financial crisis Recession in the UK Slower household spending Low-growth outlook Dollar devaluation and rising commodity prices Higher fuel prices Households under Pressure 11 Average earnings Unemployment Consumer confidence Car Ownership Trends 14 Households and car ownership Reliance on cars Driving licence holding Annual mileage Demand for Cars in the UK 16 New and used car sales Car purchase intentions The size of the car parc

3 Section 4 Market Size and Trends 19 Total Market Value 19 Grey areas 20 Total Market Volume and Average Repair Costs 21 Section 4 - Market Segmentation 1 23 Insurance-Funded Private Car Repairs 23 Non-fault credit repairs 24 Fleet and Company Car Repairs 24 Private and Trade Repairs 25 Section 4 Market Segmentation 2 26 Labour, Paint and Parts 26 Parts expenditure Labour expenditure Paint and materials expenditure Section 4 Market Segmentation 3 29 SMART Repairs 29 A new market segment? A maturing market Sectors within SMART repair Section 5 Accident and Repair Rates 33 Car Usage and Claims Frequency 34 Total Losses 35 Section 6 Repairs by Vehicle Make 39 Average Repair Cost Trends 39 Repair Volume by Vehicle Make 40 Repair Costs by Vehicle Make 41 Average repair costs by make Average labour cost of repairs Average parts cost of repairs Average paint and materials cost of repairs

4 Section 6 Repairs by Vehicle Make (cont/.) Charts of Repair Costs by Vehicle Make 43 Repair Gross Margins 50 Gross margins by make of vehicle Labour gross margins Section 7 Bodyshop Supply Structure 55 Number of Outlets 55 Independent and Franchised Dealer Bodyshops 55 Trends in Outlet Size 56 Small bodyshops Medium-sized bodyshops Large Independent Bodyshops and Groups 58 Nationwide Crash Repair Centres Just Car Clinics Franchised Dealer Bodyshops 62 Dealer group bodyshops 63 Insurance Company-Approved Repair Networks 64 Independent Bodyshop Networks 65 Vizion Acoat Select Partnership Fix Auto (UK) Repair Capacity 67 Section 8 Motor Insurance Trends 69 Market Background 69 The rise of the aggregators and the fall in profitability A commoditised market? Ancillary income General Insurance Trends and Profitability 70 Motor Insurance Market Trends 71 Major Motor Insurers 73 Motor Insurance Policy Trends 74 Trends in policy premiums Usage-based motor insurance 74 76

5 Section 8 Motor Insurance Trends (cont/.) Trends in Private and Fleet Motor Claims 76 Rising Claims Costs 77 OFT Motor Insurance Investigation 78 Call for evidence Market study Competition Commission referral Potential outcomes of Competition Commission referral Subrogation RSA judgement Fallows v Harkers Transport Coles v Hetherton Section 9 Bodyshop Information Technology 85 From Opinion to Standard Times 85 Computerised Estimating 85 Thatcham times Vehicle manufacturer times Estimating Systems 86 Bodyshop Management Systems 87 Section 10 Strategic Outlook and Forecasts 89 The Economy 89 Economic outlook Problems in the eurozone No recovery without higher household spending Fuel prices may be key Impact on car body repairs Motor Insurance Claims 91 Referral fees Non-fault claims subrogation Market Size and Trends 93 Four-year car parc Market drivers Repair demand Market value and average repair costs

6 Section 10 Strategic Outlook and Forecasts (cont/.) Supply Structure 96 Repair Capacity 98 Technical repair capacity 99 Insurance Market Competition and Regulation 100 Section 11 - Appendix 103 Appendix PowerPoint Executive Summary 103