By: Luke Jones, Published on January 30, 2017 04:34 PM, Last Update on January 30, 2017 01:35 PM
Several market disruptors will damage the collision industry in Canada within a decade, according to one speaker at the Canadian Collision Industry Forum (CCIF) meeting in Vaughan, Ont.
Andrew King, managing partner at Desrosiers Automotive Consultants Inc. says the collision industry in the country will be “ripped apart beyond belief” by changes such as ridesharing and autonomous vehicles. Some of these disruptors will be soft, which King describes as manageable but still influential on the market.
Hard disruptors will “rip the industry apart and lead to a whole new world,” he suggested while talking at a session called Auto Industry Outlook.
“There’ll be more change in the next decade than there has been in the last 100 years,” he predicted. “The industry 10 years from now is going to be completely different. It’s going to be beyond recognition.”
Autonomous vehicles will be a major disruptor to the collision industry. In a similar way to which driverless cars will disrupt the auto insurance market, they will also tear up the industry if accident rates fall.
“The technology is there, it can happen. When it does happen, you will see accident rates fall. It is going to shape up the industry, tear it up.”
Ridesharing represents a problem too. “This is the Ubers of the world,” King said, noting that Uber went from US$150 million of revenue in 2013 to US$1.5 billion in 2015. “We could move away from one family, one car, to vehicle sharing. It’s unknown. It’s certainly growing incredibly fast.”