Thinking of Buying a Panel Beating Business in Australia? Here Are 3 Vital Questions to Ask

The Australian motor vehicle body, paint, and interior repair industry — which includes panel beating — generated $9.7 billion in revenue in 2025, with profit margins averaging 4.0%. The sector employs more than 44,000 people across over 14,700 enterprises.

Revenue declined at 0.5% annually over the past five years due to fewer collisions caused by safer vehicles, labour shortages, and insurer pricing pressure. However, growth is expected to resume at 1.4% annually through 2030, reaching $10.4 billion. Rising vehicle registrations, improved economic conditions, and new repair requirements for advanced driver assistance systems (ADAS) and electric vehicles will support demand.

1. Is the Business Financially Resilient in a Tight Margin Industry?

Why It Matters

Panel beating is heavily influenced by insurers, who account for most repair work and apply strict pricing controls. While essential repairs ensure baseline demand, profitability is constrained. Margins have narrowed as costs for labour, paint, and parts rise, making efficient operations crucial.

What to Check

• Profitability – Benchmark against the industry average of 4.0%.
  
  

• Revenue mix – Assess reliance on insurer-preferred repair work versus direct-to-consumer jobs such as restorations and custom paint.
  
  

• Cost management – Review rent, wages, energy, and material costs, as these are rising faster than prices.
  
  

• Cash flow resilience – Examine how the business coped during downturns, such as COVID-19 lockdowns.
  
  

2. Does the Workshop Have Strong Market Positioning?

Why It Matters

The industry is consolidating, with AMA Group holding over 9% market share after aggressive acquisitions. Smaller workshops survive by specialising in niche services like restorations, hail damage, or premium finishes. Insurer-preferred contracts provide steady workflow but limit pricing flexibility, while independents must compete on service quality and reputation.

What to Check

• Insurer agreements – Confirm whether the business has preferred repairer status or relies on independent referrals.
  
  

• Customer base – Assess reliance on insurers, households, or fleet operators.
  
  

• Reputation – Review online ratings, repeat business, and trade networks.
  
  

• Competitive environment – Analyse nearby workshops and presence of large chains.
  
  

3. Is the Business Prepared for Industry and Technology Trends?

Why It Matters

Vehicle technology is reshaping repair requirements. Fewer accidents are occurring, but repairs are more complex, requiring ADAS calibration, EV servicing, and advanced diagnostic tools. At the same time, right-to-repair reforms are increasing access to repair data, giving independents more opportunity. Businesses that invest in new equipment and training will capture future growth.

What to Check

• Technology adoption – Review capability for ADAS recalibration, EV repairs, and digital workflow systems.
  
  

• Workforce skills – Confirm staff qualifications, training programs, and ability to attract skilled panel beaters.
  
  

• Regulatory compliance – Ensure licensing under state repair laws and adherence to environmental standards.
  
  

• Future readiness – Evaluate diversification into cosmetic work, customisation, or fleet contracts to offset declining collision volumes.
  
  

Ready to Invest in a Thriving Panel Beating Business?

With essential demand, growing vehicle registrations, and new opportunities in EV and ADAS servicing, panel beating remains a necessary and evolving industry.

Success will depend on cost control, insurer relationships, niche specialisation, and investment in future-focused technology.

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