Body Shops Divulge Their Preferences
26 May 1998
Frost & Sullivan: Body Shops Divulge Their Preferences in Survey of the Collision Parts Aftermarket MOUNTAIN VIEW, Calif., May 26 -- The market for collision
parts runs differently from other markets because most repairs are paid for by
insurance companies, rather than by vehicle owners, who actually benefit from
the repair work. And, since insurance companies do not bear the burden of the
quality of repairs, they can afford to be price-sensitive. This puts body
shops in a difficult position because they are stuck between insurance
companies that demand low prices, and vehicle owners who would prefer to have
the best quality parts installed in their vehicles.
According to strategic research conducted by Frost & Sullivan
(http://www.frost.com), U.S. Body Shop Survey on the Collision Parts Aftermarket,
from the body shops' perspective, buying low-cost parts is a bad idea for
several reasons. Inexpensive parts take longer to install because they may
not fit properly. Often, holes must be redrilled, parts need to be bent to
align, and painting becomes more difficult. In addition, if the vehicle owner
is not satisfied, rework may be necessary.
Through Frost & Sullivan's survey, body shops have made it apparent that
they prefer original equipment (OE) collision replacement parts over salvaged,
refurbished and aftermarket parts. Although OE parts are more expensive than
other replacement parts, body shops believe they provide better value, mainly
due to ease of installment.
The replacement parts market is also a good revenue source for auto
makers, who still hold the largest share of the market, says Automotive
Analyst Joerg Dittmer. Aftermarket manufacturers only provide parts that are
in high demand, such as front-end parts for popular vehicles. Therefore, auto
makers, which supply parts for their vehicles, can charge monopoly prices for
parts on which they have no competition from independent aftermarket
manufacturers.
According to the body shops, insurance companies have more influence over
the choice of parts than either vehicle owners or body shops themselves.
Although, in the body shops' opinion, vehicle owners would much rather have OE
parts installed on their vehicles, insurance companies urge body shops to use
aftermarket and salvaged parts, even going so far as to make recommendations.
In addition, although according to the shops, vehicle owners have more
influence with insurers than the body shops do, vehicle owners do not often
ask for more funding for OE parts if aftermarket parts have been specified.
In Frost & Sullivan's new study, U.S. Body Shop Survey on the Collision
Parts Aftermarket, the 160 body shops surveyed were randomly selected from a
master list of over 63,000 body shops in the United States. These body shops
were questioned on such topics as ease of installation of parts from various
sources, shops' ratings of various auto makers as suppliers of collision
parts, profitability of using parts from various sources, willingness to shop
around for aftermarket brands, and extra time needed to install aftermarket
parts.
Statistical evaluations are presented in this survey, as are tabulations
and cross-tabulations of responses. Results are discussed in separate
chapters for parts makers, suppliers, and distributors, respectively. A
chapter is devoted to a discussion of OE versus aftermarket parts. Also
included are regional comparisons based on a four-region breakdown of the 48
contiguous states and comparison by shop size.
The companies participating in this market include: A.G. Simpson Co.
Tennessee, American Honda Motor Company, Inc., Capstone Plastics, Chrysler
Corporation, The Colonel's, Inc., Cooper Automotive, Delphi Interior and
Lighting, Ford Motor Co., Genera Corporation, General Motors Corp., Gordon
Auto Body Parts Company, Ltd., Hella Lighting, Inc., Jui Li Enterprise
Company, Ltd, Landforce Corporation, Nissan Motor Corporation U.S.A., Nordan
Distributing, North Star Plating, Osram Sylvania, Philips Lighting Company,
Production Bumper Stampings, Inc., R&W Rubber Bumper Company, Robert Bosch
Corporation, Sigma, Summax Auto Parts, Inc., Supreme Bumpers, Inc., Tie Shine
Industrial Company, Ltd., Tong Yang Industry Company, Ltd., Toyota Motor Sales
U.S.A., Unique Industries Corporation, Veng U.S.A. Inc., Distributors: All
Makes Body Parts, Alamo Automotive, Inc., Auto Body Panels, Inc., Auto Fit,
Carolina Automotive Group, Chambers Parts Distributors, Collision Parts
Distributors, Collision Parts Network, Crash Parts International, Inc., Eagle
Automotive, Fenders & More, Inc., Fitz Auto Parts, Inc., INTEURO Parts
Distributors, Inc., Kansas Bumper and Body Parts, Inc., Keystone Automotive
Industries, Inc., Midwest Fender, Inc., NAPA, National Auto Parts, Inc., New
World International, Nordan Products Division, North Star Paint & Body Supply,
Pacific Auto Company, Inc./Pacific Best Inc., Partsnet, Division of Fenders &
More, Inc., Republic Automotive Parts, Inc., Sherman and Associates, Inc.,
Unique Industries Corporation, United Auto Parts, Inc., Industry Organizations
and Publications: AAA Foundation for Traffic Safety, Autobody News, AutoInc.
Magazine, Automotive Body Parts Association, Automotive Service Association
(ASA), Automotive Warehouse Distributors Association, Bumper Recycling
Association of North America, Certified Aftermarket Parts Association,
Collision Repair Specialist, ComSearch, Inc., DRP Networks, Inc., Insurance
Institute for Highway Safety, National Association of Independent Insurers,
National Auto Body Council, National Safety Council, Society of Collision
Repair Specialists , Wreck Checks, Inc.
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5561-18 U.S. Collision Replacement Part Aftermarkets,
and #5505-18 An Analysis of the U.S. Automotive Hard Parts Market: The
Installer's Perspective, and to support industry participants with customized
consulting needs.
Report: 5568-18 Publication Date: June 1998 Price: $9500
For more information in the United States, please contact:
Kathleen Cooney
California
650.237.4385
650.903.0915 fax
kcooney@frost.com
or, visit our web site: http://www.frost.com
