Panel beating is far from a dying art, with the industry enjoying long steady growth with no perceptible falling off in the future. By ROBERT BRYANT
By Robert Bryant
Panel beating is far from a dying art, with the industry enjoying long steady growth with no perceptible falling off in the future.
The smash repairs industry may be all about turning crashes into cash, but it has achieved remarkably slow, steady growth in recent years – and looks set to do so into the future.
One of the least concentrated industries in Australia, the largest player in the smash repairs sector, Adtrans Group, commands just 1% of the total market.
There has been some recent consolidation at the very small end of the sector however, leading to a reduction in the number of business and number of people employed in smash repairs.
Employment levels have declined steadily over the current period, directly due to a declining number of establishments following the rationalisation of repair shops at the lower end of the market.
Smash repairs businesses have achieved average revenue growth of just over 2.5% over the past four years. High fuel prices caused a growth stutter in 2004, knocking average revenue growth down to 1.9%. Since then smash repairs businesses have achieved moderate growth, with revenue up 3.5% in 2005, 2.2% in 2006 and 2.5% in 2007.
KEY STATISTICS 2007
GEOGRAPHIC SPREAD 2008
Share of establishments by state and territory
IBISWorld forecasts that the smash repairs industry will grow at an average annual rate of 2.8% over the next five years.
Following a 3.1% lift in revenue this year, slower economic times are likely to see revenue growth grow at a more sedate pace, ranging between 2.6% and 2.8%, between 2009 and 2012.
A rebound in the economy and growing population should see stronger motoring activity in both the passenger and freight segments from 2012, fuelling stronger 3% growth in 2013 and providing the basis for improved performance in the years ahead.
Products and service segmentation
RECENT INDUSTRY PERFORMANCE
Key performance factors
IBISWorld has identified the following factors as being essential for the success of smash repairs businesses in the years ahead:
IBISWorld supplies business information databases, including industry reports, company reports and business indicator reports. www.ibisworld.com.au