11 hours ago

State of the UK Body Repair Industry 2025 Report

Each year, the ABP State of the Industry report gives us one of the clearest snapshots of the UK body repair sector. The newly released 2025 edition is perhaps the most telling yet: a mixture of pressure, adaptation, and cautious optimism, all in a market reshaped by technology, labour shortages, consolidation and shifting insurer strategies.

From an engineering and assessment perspective at Laird, the findings don’t just describe the industry; they signpost how our workflows, technologies, and clients’ expectations must evolve.

Here are the key takeaways and how they will shape the future of motor damage assessment and claims management.

1. Repair Volumes Are Falling, Reshaping the Entire Ecosystem

The report confirms what many of us have felt on the ground:
44% of bodyshops saw lower repair volumes in Sept 2025 vs Sept 2024

This isn’t a blip; it’s a structural shift caused by:

safer vehicles and ADAS reducing collision frequency
high excesses discourage claims
rising DIY/online repair culture amplified by influencers
insurers are salvaging borderline-repairable vehicles more aggressively

Lower volumes mean every claim carries heightened operational value. Insurers, bodyshops and AMCs are scrutinising repair methods more closely, and engineers must justify decisions with greater depth, accuracy and evidence. Our investment in digital tools, image analysis, and data-backed methodologies becomes even more critical as each assessment must be defensible, auditable and technically robust.

2. Profitability Is Under Pressure Although Optimism Exists

A balanced but challenging financial picture emerged:

44% of repairers say profits are down this year
39% saw improvement, showing fragmented market resilience
49% expect profits to rise next year, showing optimism despite pressure

The most significant pressures cited across the report include:

shrinking margins
parts delays
unrealistic KPIs
rising wages due to skills shortages
compliance/admin burden from insurers & AMCs

When repair margins are tight, disputes increase. We expect more challenges to repair vs replace decisions, more scrutiny of paint/material allowances, increased disputes around labour times, ADAS procedures and repair methodology and a possible rise in second opinions.

Our role as a neutral expert becomes increasingly essential to ensure fairness, safety and cost accuracy.

3. Labour Rates Are Falling

Perhaps the most startling metric:

Average net labour rate fell 4.7% year-on-year (£48.23/hr vs £50.62/hr)

This is despite inflation, NI increases, rising energy costs, soaring investment requirements & higher staffing costs due to shortages.

Bodyshops believe a fair rate is ~£61/hr, still 4% below last year’s view of fairness.

Falling rates and rising complexity create greater tension around the viability of repair operations. We will likely see more pushback on repair method times, increased pressure to use green or aftermarket parts & a shift toward “minimum viable repair” decision-making

Our engineers must continue to champion OEM-correct, safe, compliant methods even when commercial pressures tempt shortcuts.

4. ADAS: The Biggest Technical Shift

The report shows a dramatic shift in capability:

50% of ADAS alignments now carried out by bodyshops themselves
Only 6% now go back to dealers
Specialist firms handle 44% (on-site or remote)

ADAS calibration has become one of the most contentious engineering subjects in claims:

whether calibration is needed
whether it must be dynamic, static, or both
what constitutes “disturbance”
whether remote providers meet OEM requirements

Our engineers must continue to be the authoritative technical voice; evidence-led, OEM-led, and safety-led. As bodyshops bring ADAS in-house, we expect:

more accurate repair flows
fewer delays
but also more variation in quality, requiring expert auditing

Our ADAS knowledge and documentation standards will be a differentiator.

5. Green Parts Use at Record Levels; Driven by Constraints, Not Just Sustainability

Key statistics show 91% of repairers now use green parts, 75% have increased usage year-on-year & main drivers are availability issues and avoiding total loss outcomes.

However, barriers remain with quality inconsistency, rectification work, policyholder resistance, & a limited supply.

Green parts will continue to feature heavily in repair strategies, especially where salvage values are high, repairers face supply delays or insurers prioritise economic repair ratios.

Our engineers must carefully assess suitability, warranty implications, structural integrity, corrosion considerations and compatibility. “Green where appropriate” must remain the rule, not green at any cost.

6. Skills Shortages Are Now Existential

Skills shortages remain one of the top three threats:

“shortage of skilled staff”
“low labour rates”
“too little repair volume”

While 77% of repairers employ apprentices, only 47% expect to take on new ones, the lowest since Covid. Retention is good, but recruitment remains difficult.

This has several consequences, including increased lead times, inconsistency in estimates and repair quality, growing variance in engineering knowledge across the market and a higher likelihood of incorrect methods being attempted.

Accurate engineering oversight, training, and auditing from companies like Laird become more important than ever.

7. Consolidation & Network Behaviour Are Reshaping the Landscape

The report’s verbatim comments (pages 21–34) reveal a mood of frustration, particularly around:

aggressive expansion of large groups
insurer steering
conflicting KPIs
excessive admin and compliance burdens
the erosion of independence

This is reshaping competition at regional levels and altering the flow of claims.

Laird’s true independence becomes increasingly vital.

When the same organisation controls work provision, cost control, auditing and sometimes even repair capacity, real impartiality suffers.

We remain one of the few voices focused purely on engineering accuracy, safety and fairness, not network optimisation or shareholder profits.

What This Means for Laird Assessors Going Forward

1. Engineering expertise will become even more valuable.

As vehicles get safer and more complex, every decision must be evidence-based and technically justified.

2. Our investment in digital assessment, ADAS expertise, and data analytics is aligned with market needs.

The industry is moving towards precision and auditability, exactly where Laird is strongest.

3. Collaboration, not conflict, will define the next chapter of claims management.

Repairers, insurers, solicitors and AMCs are all navigating the same pressures. Laird’s role is to translate technical truth into commercially and legally workable outcomes.

4. Expect more requests for technical guidance, methodology validation, and dispute resolution.

When volumes fall, and margins tighten, disagreements rise, and expert engineering becomes indispensable.

5. Safety and compliance must remain the north star.

No combination of KPIs, discounts or commercial deals can override the physics of modern vehicle structures, ADAS systems or EV battery safety.

An Industry Under Strain Yet Not Without Opportunity

The 2025 ABP report paints a picture of a sector under intense pressure but not collapsing. There is resilience, innovation, and pride throughout the industry.

At Laird, we see the same pattern every day:

repairers frustrated yet determined
insurers are cost-pressured yet evolving
customers confused but increasingly engaged

And through it all, engineering remains the constant; the anchor point that keeps repairs safe, fair and technically correct.

The year ahead will be challenging, but also full of opportunity for those prepared to adapt, collaborate and uphold the highest technical standards. At Laird, that’s exactly what we intend to do.