Proof that bodyshop margins right across Europe are being squeezed every tighter, can be seen in the latest UK report on accident repair by market analysts Plimsoll.

It says that one in three companies in the UK Accident Repair sector are currently making a loss, with many in the market finding it difficult to pass on the pain of cost inflation to their customers for fear of losing business.

The report also highlights that 48% of companies have seen their gross margin fall in the last year and Plimsoll warns the current situation is unsustainable, as many companies will simply run out of cash to survive if they do not adjust prices.