The recent spate of bad weather in the UK has caused demand for accident repairs to significantly outstrip the available capacity in the industry and means many drivers are having long waits to get their vehicles back on the road.
The latest Trend Tracker report shows that excess capacity in the industry was down from 3% in 2006 to just 1% by the end of 2009. This has meant that the available repair centres simply have not been able to cope with increased accident rates caused by snow and ice.
The report also predicts that even with falling repair volumes, there is still likely to be a 9% defect in capacity by 2015. Trend Tracker director Chris Oakham said, "In the medium term, insurers should be concerned that they will find it increasingly difficult to satisfy their customers with rapid and convenient repairs."