Traffic at dealership body shops should slowly return to pre-pandemic levels in 2021, though it may not be until the following year before the numbers are back to normal.
That’s the view of Susanna Gotsch, director at CCC Information Services, a collision software provider. She says most shops reported a 15 to 20 percent decline in business last year — recovering from the first few months of the pandemic when some saw business drop by half.
“Our expectation is that we will continue to see people start to get out more, we’ll continue to see improvement” in collision repair numbers, she says. “The second half of the year could be pretty healthy from a volume perspective. Well above where we were in 2020 and maybe only slightly down from where we were in 2019.”
Traffic levels — as well as accidents — plummeted during the pandemic as many people worked from home and rarely ventured out. Gotsch says CCC research indicates typical bone-shaped driving routes — errands around home and back and forth to work — may be changed permanently, something dealership body shops need to monitor.
“How the driving patterns change will also potentially drive the types of accidents and where they occur, and the shops chosen potentially to do some of that work,” she says.
If a dealership is contemplating whether to add a collision shop, Gotsch says, the time might be right to invest.
“I think there’s a lot of interest in sort of diversifying and bringing in more capabilities to broaden your ability to grow your revenue,” she says. “Most people think that the collision industry is going to be pretty healthy for some time.”
She also says CCC research shows people who may have relied on public transportation or ride sharing before the pandemic are now buying vehicles instead. And stimulus checks that people received during the pandemic spurred some to buy new vehicles or newer used cars.
Newer vehicles are made with lighter materials, have different joining techniques and are equipped with more sensors. All these things mean that collision repairs are more complex, requiring more technician training and special tools — an advantage dealerships might have over independent shops.
“The dealerships, if they have body shops, are sort of positioned well for, and oftentimes they’re sort of the first in line for, some of that” body repair work, Gotsch says.
Gotsch says the parts department at dealerships also can play a role in helping the body shop grow its business and keep customers happy. She says the complexity of today’s collision repairs can take a long time.
“So on the part side, the more things — processes and tools and technologies — that can be put in place,” the better, Gotsch says.
“There’s not going to be much they can do to control the growing cycle time other than trying to improve the processes internally,” she says. “So some of the technologies like online parts ordering and invoicing and reducing of returns — all of that will become increasingly important.”