To say panel beaters would one day go extinct in Australia is a folly. Maybe in the future where machines perform smash repair services, but for now, that’s far from reality. The demand for this business won’t seem to disappear.
But the industry hasn’t been flourishing as of late either. As a matter of fact, the last five years have been grim for many family-owned panel beating companies. A combination of different factors has slowed down the industry’s overall growth, making it one of the most financially challenging periods in the history of panel beating. It’s a good thing that many offersing such service also offer repair services, according to Nova Smash Repairs.
Decreased in Collisions
Modern safety vehicle features have significantly reduced accidents. This is generally great news, but this also means lesser clients for smash repair businesses. As the robust sales of new passenger vehicles with improved safety technologies continue, analysts expect the demand to remain at this level.
One of the few things going the way of panel beaters is the small number of trade-ins and vehicle disposals. This has kept the average age of domestic vehicles stable throughout the past five years.
Insufficient Payments from Insurers
The low demand practically puts insurance companies on the driver’s seat. Insurers are paying smash repair service providers less because of the status quo, thus greatly reducing the industry’s collective revenue. Unfortunately for panel beaters in Perth, Adelaide and other markets, the majority of them rely on agreements with insurers to ensure new clients.
Scare Manpower Australia-Wide
Despite the industry’s revenue struggles, the country actually needs from smash repairers. Currently, the shortage of panel beaters has not made a considerable impact, but unless this is resolved immediately, it might affect customers like you in the long run.
As these trends continue to shape the industry, changes are quite inevitable. Panel beating might be here to stay, but smash repair services may be not like what they’re used to in the coming years.