As consolidators move into your neighborhood, they will become your biggest competition. The major consolidators, Crash Champions, Boyd Group, and Caliber have increased their holdings by over 400% in collision and related industries. Leaving a smaller percentage of business for the independent auto body shops.
Automotive manufacturers are requiring body shops to be certified before repairing vehicles and purchasing parts. Some independent repair shops have certifications to meet manufacturer's demands. The trend of certification will continue to increase with manufacturers instituting specific requirements for their brands. Investments in certifications, equipment updates and training to keep up with these requirements can be costly for independent collision repair shops.
Integrated vehicle technologies affect the ability of most shops to competently carry out the most basic repairs. It is becoming increasingly evident to automotive brands; the majority of individual repair facilities do not have the skills, equipment and processes to continue repairing all makes of vehicles. As these technologies become more advanced, the cost to hire certified repair technicians, update equipment and tools will become very costly.
Major consolidators are recruiting new employees through educational institutions with financial incentives, paid training, and guaranteed employment with full benefits. The independent shop owners are challenged with a less skilled work force due to the "brain drain" by consolidators.
Major Consolidators have been acquiring industry related companies. Your vendors for glass, paint, and supplies are mostly owned by these large consolidators. Your business transactions with these vendors may be generating revenue for your direct competitors.