The UK market for body repairs has fallen in real terms for the fifth year running since its peak in 2001.

According to Sewells' latest Bodyshop Opinion Survey, the fall of 11% means the market is heading toward its lowest real-terms value since 1987. This can be explained by a fall in the amount of work required by insurance companies and accident management companies. In 1997, insurers and accident managers accounted for 84% of the market value whereas in 2006 this had fallen to 76%.Undoubtedly, the fall-off in insurer and accident manager work is partly because of an increase in the number of vehicles written off as residual values have fallen.

The effect has been a fall in the number of jobs provided by these sources of over 15% since 2000. Another factor has been the average size of insurer/accident manager jobs in terms of labour-hours, which have fallen from 18 sold hours per job in 2000 to less than 17 sold hours in 2006. This phenomenon could also be because of write-offs.

The Survey also highlights the continuing fall in the numbers of UK bodyshops. Sewells estimates that there are presently 4,070 primary bodyshops operating in the UK - 3,080 independents and 990 franchised. In 1996/97 there were 6,300, however the rate of closure has slowed considerably, and taking this into account the number of primary bodyshops will probably fall to 3,480 by 2012, which might not prove to be a problem. Primary bodyshops are those where body repairs are the main business, although it is traditional to include franchised bodyshops as well.