May 26, 2016—A Caliber Collision executive said Wednesday that the company has plans to grow to more than 1,500 shops worldwide, 20,000 suppliers and more than $6 billion in total revenue by 2020, according to a report from U.K.-based bodyshop magazine.
Speaking at the International Body Shop Industry Symposium (IBIS) Global Summit 2016 in Barcelona, Caliber’s David Smith, vice president of supply chain/procurement, made the predictions as part of an overall discussion at the Summit about consolidation in the collision repair industry.
The specific forecast from Smith mirror what was reported in FenderBender’s March cover story, “Inside the Big 4”, and highlight what FenderBender described as an increased focus on the U.S. market’s Big 4 consolidators to increase their respective market share.
It also could signal what a number of sources predicted in that March story: a merger or acquisition of a Big 4 repairer.
Both Vincent Romans, managing partner and CEO of The Romans Group LLC, and Tim Adelmann, executive vice president of business development for ABRA Auto Body & Glass, told FenderBender that they wouldn’t be surprised to see one Big 4 acquire another within the next two years.
At the end of 2015, the Big 4 represented a 12 percent market share of the collision repair industry, with total work exceeding $4 billion. Total industry revenue in 2015 was $33 billion in the U.S.
“We not only operate at a high level, but we do it on a large scale. That takes a lot of commitment from our teammates but, more importantly, from our partners. We need their help,” Smith said, according to the bodyshop report.
Growth through acquisitions of mid-sized and large MSOs has slowed in recent years, as fewer remain. Romans predicts that acquisitions of smaller MSOs will come into play much more in 2016 due to fewer 20-plus MSOs available to purchase.
The continued growth of the industry’s largest MSOs will put pressure on independent shops, experts say. Read more about what independents can do to thrive in our March story.
