As labour rates have come under increasing pressure from insurers and the burden of added legislation has taken its toll, the impact on the industry has been severe.
Analysts have claimed that the number of bodyshops in the UK has reduced by more than two thirds in the past 12 years, falling by 18,000 to below 6,000 businesses.
The most recent study into the UK's bodyshop industry, conducted by Bodyshop Magazine, showed that the number of bodyshops has declined by 25 per cent in the last five years and by 8 per cent in the last year alone.

Insurers to blame?
Chris Oakham, the author of the study, said that aggressive cost-cutting measures by insurers were largely responsible for the fall in numbers and warned that the body repair market was now in acute danger of going into an “irreversible decline”.
But Oakham said increased operating costs were just one of a myriad of problems that repairers faced.
It has been well documented that the body repair industry is the fifth most difficult sector to recruit for in the UK and the findings of Oakham's study indicate that this is a situation that will remain unchanged for the foreseeable future.
aging workforce
He warned that the UK crash repair industry was facing an “age time bomb” with a workforce growing older and a lack of new recruits.
“The industry is dependent upon a large number of employees in the 45-54 age bracket,” Oakham said.
“It's a demanding job and few people over the age of 55 can cope with the physical pressures. Most of these people, therefore, will be leaving the industry in the next few years and we simply do not have the new recruits to fill this void.”

Image makeover needed
Oakham echoed the calls of Thatcham, the motor industry repair research centre, which called for a “rebranding” of the bodyshop industry in a bid to attract young blood into the sector.
“Despite the massive technological advances that the industry has made in recent years, the public still perceives the body repair industry as dirty, dangerous and badly paid.
“Unless we can change this misconception and encourage new recruits there will be an enormous shortfall in repair capacity within the next few years,” Oakham added.
going out of business
Chris Oliver, managing director of independent repair firm AJC Wilson, said times had been tough for repairers but feared that the market was set to get tougher still.
He said that the failure rate of repairers was accelerating and, coupled with the introduction of new environmental legislation and on-going skills shortages, the hard times were set to continue.
“The effect of low profitability over many, many years, a more challenging workplace, skills shortages and rising property prices have all taken their toll,” he said.
“I do think there'll be a lot of players who drop out, the environmental regulations are just another straw to break the camel's back and I think we may see some of the bigger guys go as well as some of the smaller shops.”
Oliver said the difficult situation that bodyshops faced was compounded by the approach many insurers took in their business relationships with repairers.
He said that conditions could be improved if the reward model insurers used was amended and updated.
“There is no recognition of the level of investment bodyshops have to make to meet legislation by insurers and this is something we need to work together to address. The reward model that insurers have, especially with regard to labour rates, is out of date, it was fine 10 years ago but the industry has moved on.”
Looking forward Oliver said market conditions for repairers would remain tough for the foreseeable future.
He said there would not be a “big bang” in the industry but the cumulative effect of the added burdens bodyshops carried would creep up on businesses and numbers could fall further.
He added: “For so long we've been bouncing along the bottom but there will be a point in the future when those bodyshops that have survived are in a favourable position because the market will turn around.”

Waste disposal
Following the introduction of new rules governing the disposal of waste, the RMI has issued advice to bodyshops on how best to handle the changes.
From 16 July all businesses that produce more than 200kg of harmful waste each year must register with the Environment Agency in order to comply with the new rules.
Businesses that fail to comply will be unable to dispose of their waste legally and run the risk of a hefty fine.
Ray Holloway, RMI director for independent garages, fuel, and bodyshops, said: “The waste producer must know what is being consigned as waste and be totally clear that the waste is correctly described and can legally go where it is consigned before it leaves the premises.
“Some waste carriers are still unclear as to the new requirements, but it is the waste producer who carries the ultimate duty of care. You have been warned.”
Waste that is listed under the legislation includes bodyshop paint solvent wastes, aqueous sludges from water-based finishes and solvent-containing wipes.