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John Yoswick

John YoswickJohn Yoswick is a freelance automotive writer based in Portland, Oregon, who has been writing about the collision industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).


He can be contacted at john@crashnetwork.com 

Thursday, 11 November 2021 20:02

MSO Symposium Looks at What Lies Ahead for Auto Insurance Claims, Consolidation

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Vincent Romans, left, of The Romans Group consulting firm, and Susanna Gotsch, right, of CCC Intelligent Solutions, offered their insights during the MSO Symposium held Nov. 1 in Las Vegas. Vincent Romans, left, of The Romans Group consulting firm, and Susanna Gotsch, right, of CCC Intelligent Solutions, offered their insights during the MSO Symposium held Nov. 1 in Las Vegas.

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Vincent Romans of The Romans Group consulting firm has been monitoring the growth of multi-shop operations (MSO) in the collision repair industry for more than 15 years, and at the MSO Symposium held Nov. 1 in Las Vegas, he said even the pandemic didn’t halt consolidation within the industry.

In fact, he said, the recent growth of MSOs has been “as aggressive as almost any year that we’ve been tracking this.”

 

In 2020, Romans said, there were 26 MSOs---each with two or more locations---acquired by other chains; those acquired MSOs had a total of 311 locations and $801 million in combined sales.

 

This year is on pace to potentially match that, Romans said. Through the first 10 months of the year, 38 MSOs with 254 locations and $698 million in combined sales have been acquired.

 

Romans said there are currently 14 private equity firms with investments in collision repair businesses. Of those he noted, not one was involved in the industry when the first MSO Symposium was held a decade ago. Today, those MSOs have combined annual sales of $9.1 billion, a market share of about 26% of the entire collision repair market.

 

Looking at the industry more broadly, all the collision repair businesses that each have $10 million or more in annual sales control about 43% of the total market.

 

Romans predicts that will rise to nearly 49% by 2025; he also shared a more aggressive forecast showing their market share potentially exceeding 61% by that year, though he acknowledged “that could or may not happen.”

 

Another mainstay speaker at the MSO Symposium, Susanna Gotsch of CCC Intelligent Solutions, offered her annual look at where things stand in terms of auto insurance claims, and what may lie ahead as the nation continues to move through the pandemic.

 

Gotsch said through the first three quarters of this year, overall claims counts are up about 9%---but still remain...


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