Quebec collision repair market’s profit margin too slim for reinvestment

The Quebec collision repair market is experiencing too much capacity and too little work, according to a presentation made at the Canadian Collision Industry Forum (CCIF).
The Quebec market has roughly 1,500 collision repair facilities with annual sales of $786 million, the CCIF reported in its Montreal Meeting Report.
The average gross sales per facility are just over $500,000 per year.
For the smaller shops, the slim profit margin creates a challenge when it comes to reinvestment in new technology, staff training and equipment.
CCIF suggested in its report that even if the total number of facilities in Quebec were halved, the average sales per shop would only be slightly more than $1 million – a minimum level at which sufficient net profit is produced for reinvestment.