Article: The Collision Shop Sales Slump of 2020 (PDF)
The Collision Shop and Car Dealer Service Department Financial Report for The First Half of 2020 Reveals The Following:
- 126 Million Repair orders written
- $51 Billion in Sales, compared to $64 Billion in Sales in 2019
- A decline in all segments of the auto repair industry
The body shop business suffered the most decline, as obviously fewer cars were being repaired due to fewer accidents due to less traffic on roadways.
The declines in different segments of body and collision shop repairs were as follows:
(Billions of Dollars) | 2020 | 2019 | Change |
Customer mechanical | $ 9.14 | $ 10.75 | -15% |
Warranty | $ 4.73 | $ 5.77 | -18% |
Internal | $ 3.73 | $ 4.60 | -19% |
Customer body | $ 1.73 | $ 2.22 | -22% |
Sublet | $ 1.62 | $ 2.03 | -20% |
Other | $ 1.76 | $ 2.26 | -22% |
Total | $ 22.71 | $ 27.70 | -18% |
As measured by the percentage decline in service parts sales, wholesale and body shop businesses suffered the most.
- Wholesale ……………………$8.28 –19%
- Customer mechanical …….$7.95 –16%
- Warranty ……………………..$5.85 –12%
- Internal ……………………….$2.74 –17%
- Customer body ……………..$1.63 –19%
- Counter ……………………….$1.46 –8.8%
- Other ………………………….$2.91 –20%
Total …………………………$30.82 –17%
The average dealership saw drops in most parts and service performance measures, but the dollar value of repair orders rose.
- Sales …………………………………………..$3.1 million –16%
- Number of repair orders written …………………7,545 –22%
- Sales per customer repair order …………………$329 +5.8%
- Sales per warranty repair order …………………..$385 +12%
- Number of technicians (including body shop) …….15 –6.3%
- Customer mechanical labor rate …………………$131 +6.5%
Total parts inventory …………………………$405,818 –8.1%