What is the Economic Impact of COVID-19 on the Collision Repair Industry?

The COVID-19 pandemic has already changed the spending habits of most Americans. Nearly every sector in the US economy has been impacted by COVID-19, including the $50 billion a year collision repair industry. And although the recession has allowed some shops to catch up on backlogs and fill job vacancies, others are getting squeezed as people drive less and tighten their budgets. What follows are some ways that COVID-19 may be affecting the bottom line of the average collision repair shop near you. 

Auto Shops Remain Open

Since they are classified by the government as “essential” businesses, auto body and glass repair shops can still-remain open when other businesses can’t. CollisionWeek (CW) recently surveyed collision repair facilities across the US to determine how their business has changed over the past month and to get their economic projections for the rest of this year. Fortunately, CW discovered that 100% of the shops they contacted were still open for business. 

What Does the Future Hold For Auto Repair Shops?

When asked by CW if they were confident that business would return to normal during the second half of 2020, a vast majority of survey respondents indicated that they thought it would. 

Over at CCC, a leading information services provider for the collision repair industry, they are also optimistic about the future of their clients. According to a recent article posted on CCC’s website, some industry insiders believe that COVID-19 will only cause a minor ripple in the collision repair sector, resulting in a temporary hiring slowdown in some states.