Auto collision repair shop owners are expanding with new, build-to-suit locations.

Auto body shops and MSOs across the nation are expanding their footprint by opening new, build-to-suit locations. This trend indicates a shift towards owners seeking the perfect layouts and locations for their shops as they grow and mature in the market. Both larger players and smaller independent shops are investing in either brownfield or greenfield developments, depending on the land’s previous use.

The push for new construction is seen as a strategic move and a complement to mergers and acquisitions. According to Cole Strandberg, a managing director at Focus Investment Banking, industry experts view development as a way to fill gaps in mature markets and control the location and design of their facilities. He notes that the recruitment of skilled labor and navigating through zoning, permitting, and demographic studies are the primary challenges faced during this process.

Mr. Dent Collision Repair, operated by Logan Martin and his family, exemplifies the trend of expanding through new builds. Starting as a small business with one shop, Mr. Dent has now grown to three locations. Their approach to development focuses on staying in strong markets and acquiring places that suit their needs. By strategically choosing cities and metro areas based on population density, demographics, and logistical considerations, they have managed to optimize their operations.

Indie operators are also venturing into the new-build territory, with more small-scale operations considering customized facilities for their businesses. For instance, Clayton Millsap of The Damage Co. is looking to upgrade his existing shop, which has outgrown its current capacity for work. His vision of a larger, modern collision center reflects a growing trend among independents to adopt a more advanced and organized approach to their operations.

Overall, the trend towards new-build auto body shops and collision centers represents a strategic shift within the industry. By focusing on constructing custom facilities that align with their business goals and operational needs, operators are positioning themselves for long-term success in the competitive market. Whether aiming to accommodate new technologies or expand their services, the decision to invest in build-to-suit locations underscores the commitment of these operators to provide high-quality services in ideal settings.