Industry Analysis & Industry Trends
The Motor Vehicle Body, Paint and Interior Repair industry is a bit of a wreck. Industry revenue is estimated to decline by an annualised 0.6% over the five years through 2012-13 to reach $7.11 billion. Motor vehicle body, paint and interior repairers require damaged vehicles for business. However, the number of collisions fell over the past five years. Improved vehicle technology, such as anti-lock braking and traction control, led to fewer crashes, particularly severe ones. To make things worse for the industry, the average age of motor vehicles has been falling. This is troubling for repairers, as newer vehicles are less prone to crashes. Sensitisation campaigns and booze-bus blitzes also contributed to the decline in crashes over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity is at a low level in the Motor Vehicle Body, Paint and Interior Repair industry. The industry spends an estimated $11.67 on labour for every $1.00 invested in new capital. The relatively small investment in new capital suggests the industry has a low level of capital intensity. Capital expenses include expenses on new buildings and equipment. Labour expenses include the wages and salaries paid to panel beaters, spray painters, tow truck drivers and administrative staff.
Traditionally, smash repairing has involved fairly labour-intensive standard panel beating and painting techniques... purchase to read more