The refinishing industry, like the rest of the collision repair industry, finds itself, in a cycle of consolidation. The larger body shops are eating up the market at a daunting pace. As can be seen in the charts below, the number of shops in the US market has decreased substantially in the last decade.
It is not a surprise that despite an over 25% drop in the number of body shops operating in the US, the number of large collision shops has nearly doubled.
The story in terms of revenue is quite similar. The collision market has grown slightly but the percentage of revenue that is taken up by the mega shops has more than doubled from 9.1% to 19.2%. This trend continues.
For shops between $2MM and $10MM per year, the backbone of the industry, the narrative in the coming decade will be one of optimization or obsolescence. Either these shops adopt "assembly-line" type optimized processes and new technologies, or they will continue to lose more and more of the market to the behemoths.
BASF, with the help of SPDI, is in a great position to grow their market penetration and help these mid-sized companies survive and thrive thanks to their focus on optimization. With the incredible time savings brought to the prepping and priming process by UV Fastlane, combined with the process optimization of the APS program, medium-sized shops that join the BASF family are given a lifeline that is not offered by any combination of companies in the industry. Frankly, it is a lifeline that creates a virtuous cycle for customers, sales representatives, BASF, and SPDI alike.