Collision Repair Industry: Revenue Decline and Consolidation Trends in 2024

The collision repair industry had a rollercoaster of a year in 2024. According to David Roberts of Focus Advisors, things took a turn with declining revenues, more shops closing their doors, and a surge in consolidation among operators. Roberts spoke about these trends at the MSO Symposium in Las Vegas last November, shedding light on what’s to come in 2025 and beyond.

While some challenges like fewer repairable vehicles and complex repairs persist, Roberts remains hopeful about the future. He emphasized that operators with a larger scale are the ones poised to thrive in the face of these challenges.

In 2024, small independent repair shops saw closures on the rise, with nearly 800 shutting down shop. On the flip side, medium and large multi-shop operators (MSOs) are doing well, especially those with seven or more locations. The big players like Caliber Collision and Classic Collision are leading the way, with Caliber boasting more than 1,800 locations and a robust growth strategy through acquisitions and new developments. Another contender, Joe Hudson’s Collision Center, also grew significantly in 2024, expanding its shop count by over 22%.

There’s also a rise in private equity-backed MSOs, dubbed as the “Sharks” by Roberts. These consolidators, including Quality Collision Group and Kaizen Collision, collectively added close to 100 shops in 2024. Roberts noted that these firms are using their financial prowess to acquire smaller shops, streamline operations, and reap significant returns.

Even regional MSOs are holding their ground, developing unique strategies to stay competitive. Take G&C Auto Body in California, which grew from 31 to 43 shops in just one year. TAG Auto Group in Indiana is also on the rise, expanding its shop and calibration center portfolio.

Looking ahead, Roberts predicts more challenges for the industry, such as rising costs and stricter standards. He anticipates that consolidators and financially strong regional MSOs will dominate the market, capturing over 50% of the market share in the next decade.

As Roberts put it, the best repairers in the business will need to be extremely efficient. Those who have advanced certifications and top-notch skills will lead the charge in the ever-evolving collision repair industry.