ABP Club’s survey shows hourly UK bodyshop labour rate increase

UK bodyshop labour rates have increased from £32.75 per hour to £34.43, an ABP Club study has revealed.

Its latest State of the Industry Report 2019, was published this month, and the study- sponsored by Mirka- has shown the average rate from 21 of the largest bodyshop groups in the UK has increased.

The study found:

• 1% of bodyshops surveyed said their labour rate was below £25 per hour.
• 17% said it was £35-£29.99.
• 42% said they were getting £30-34.99 per hour.
• 22% bodyshops secure £35-£39.99.
• 10% said £40-£49.99.
• 5% said their average labour rate was £45-£49.99, and
• just 3% are getting £50 per hour plus - despite 32% respondents telling ABP Club their think £50+ per hour is "a fair and realistic hourly rate".

ABP Club chairman, David Cresswell, said: “After five years in a row of improving profit margins in the UK body repair industry, it is disappointing to see that our analysis has revealed a fall in the average profitability over the last year.

"The ever-increasing level of technology being fitted as standard to new cars means the bodyshops are continuing to make major investments in their businesses on the equipment and training needed to repair these cars safely.

"The insurance companies and accident management companies need to be aware of the situation as a 4.92% pre-tax profit margin - £86 pre-tax profit per job - is insufficient to fund the investment needed.”

Data from the 21 groups also showed the following:

Average annual turnover per member of staff is now £100,730.

• The average pre-tax profit margin for these 21 bodyshop groups has fallen to 4.92% (from 6.68% last year) – the first fall since 2014.
• 14 of the 21 bodyshop groups saw their pre-tax profits fall in the last year.
• These 21 bodyshops groups made an average of £86 pre-tax profit on the average £1,748 insurance job.

Also, ACIS recently launched a training programme to upskill bodyshop technicians to cater for the growth in the electric vehicle (EV) market.