Overview

The 80,800 automobile repair shops in the US fix cars with mechanical problems or restore a vehicle after a collision. The automobile repair industry is highly fragmented. About 70 percent of all out-of-warranty vehicles are repaired at independent shops. Over 90 percent of independent service shops are family-owned.

Competition from Dealers

Faced with declining new car sales, car dealerships are increasing their efforts to service and repair vehicles of all types.

Declining Collision Sector

Once a highly-profitable segment, the collision and body repair sector is in what some industry experts have termed “irrevocable decline.