Auto Body Shops

The 31,351 auto body shops in the US provide structural and interior repair, paint, and customization services for vehicles, such as passenger cars, trucks, vans, and trailer bodies. Major customers are insurers, vehicle owners, and auto dealerships. Some auto body shops are members of insurers’ Direct Repair Programs (DRP) and receive referrals from insurers whose clients have filed damage claims.

Increasing Technological Complexity

The technological complexity of modern vehicles creates operational challenges for body shops.

Collision Claims Stabilize, But Severity Rises

Increased passenger vehicle weights and the further integration of automated safety control systems is having an impact on how the auto body repair industry operates, according to industry experts at a seminar hosted by the Collision Industry Electronic Commerce Association.

Jul 31, 2026 - Standardized Vehicle Designs Could Streamline Collision Repairs

• Auto body shops may benefit as automakers increasingly build more vehicles on common platforms with shared structural components. Volkswagen recently said it plans to cut its global model lineup by as much as 50% and reduce product variants by 75% by 2030, while Ford, Stellantis, Nissan, and other manufacturers continue expanding modular architectures that use many of the same body structures, mounting points, and components across multiple models. According to Business Insider, Volkswagen has already produced more than 32 million vehicles on its MQB platform. For collision repair shops, greater parts commonality could improve replacement part availability and reduce the number of unique repair procedures technicians must learn. The shift may also simplify estimating and repair planning as more vehicles share similar construction, though shops will still need to invest in the specialized equipment and calibration capabilities required for today's advanced driver assistance systems after many collision repairs.
• The automotive right-to-repair debate has gained momentum as lawmakers and industry groups push to expand independent access to vehicle data needed to repair increasingly connected vehicles. In 2026, the federal government began reviewing policies that could make it easier for consumers and independent shops to access repair information and aftermarket parts. Congress advanced legislation that would codify key elements of existing voluntary repair agreements between automakers and the indie repair industry. Meanwhile, Massachusetts remains the focal point of a legal battle over access to vehicle telematics data after a federal court upheld the state's landmark right-to-repair law. Automakers argue that limits on access are necessary to protect cybersecurity, privacy, and vehicle safety, while independent repairers contend that broader access is essential to preserve competition and consumer choice. As software, over-the-air updates, and advanced driver-assistance systems become standard, the outcome of these legal and regulatory efforts will reshape the automotive aftermarket.
• Auto collision repair prices in the US rose 7.1% year over year in May, per the US Bureau of Labor Statistics’s Producer Price Index (PPI), amid a mix of higher input costs and increasing vehicle complexity. A major driver is the rising cost of parts and materials (body panels, sensors, paint) fueled by elevated energy prices from the Iran war and ongoing tariff-related supply chain pressures pushing up wholesale costs. The collision repair industry also faces a shortage of skilled technicians, particularly in specialized roles like bodywork and refinishing, leading to higher wages in an already labor-intensive sector. To protect profit margins, collision shops are passing through these higher costs by marking up parts and labor. On top of that, modern vehicles - especially those with advanced driver-assistance systems and EV components - require more complex and time-consuming repairs, reinforcing an upward trend that is unlikely to ease anytime soon.
• Rising inflation, tariffs, and the ongoing Middle East war are expected to further weaken US auto demand in 2026, pressuring vehicle and parts imports while boosting demand for aftermarket repair components, according to S&P Global. Containerized US imports of automobiles and auto parts fell 9.4% in 2025 as higher borrowing costs, steel tariffs and elevated vehicle prices weighed on consumers, with prolonged conflict expected to push prices even higher and suppress container volumes further. At the same time, aftermarket suppliers such as Advance Auto Parts are benefiting as consumers delay new vehicle purchases and keep older cars on the road longer. Auto parts importers are also accelerating sourcing diversification away from China toward Southeast Asia, South Korea and Japan, though industry experts warn supply chain shifts could take up to two years amid continued tariff uncertainty and volatile trade policies.

Industry size & Structure

The average auto body shop operates out of a single location, employs more than 7 workers and generates $1.5 million annually.

• The auto body shop industry consists of more than 31,350 firms that employ about 239,250 workers and generates $47.9 billion annually.

• The industry is highly fragmented; the top 50 companies account for 20% of industry revenue.

• The industry includes multiple location operators (MLO)/multiple shop operators (MSO)/chains, franchises, and independent operators.

• Large firms include Caliber Collision, Gerber Collision & Glass, and Service King. Large franchises include Fix Auto USA and Driven Brands (CARSTAR, Maaco).