CARSTAR marks 25 years with record sales

As CARSTAR Auto Body Repair Experts celebrates its 25th anniversary, it is setting new performance standards for the collision industry and achieving record sales. For 2013, CARSTAR generated $641 million in revenue, a record for the company, up from $603 million in 2012.  CARSTAR ranks 19th out of 150 private companies in Kansas City, based on 2012 revenue.  It ended the year with more than 440 locations across North America, adding more than 40 stores to the network in 2013.  It is the largest multi-shop operator (MSO) network in North America and the largest network in the Kansas City metro area. Looking ahead, CARSTAR is optimistic for continued growth and operational improvements, thanks to weather-related repairs, advanced vehicle technology that increases repair costs and the improving economy. This year, CARSTAR expects to deliver more than $650 million in revenue, based on a strong first quarter that saw revenue growth from storm damage-related repairs across the continent. Another factor influencing CARSTAR’s growth potential is the use of advanced technologies and materials in passenger vehicles.  While these technologies make vehicles safer and more fuel efficient, they also make vehicles more complex and expensive to repair. The continued improvement in the economy also will drive growth, as consumers unleash pent up demand to repair or replace older vehicles.

“We expect to see demand for high-quality vehicle repairs continue to grow at the consumer level as the economy improves,” said David Byers, CEO of CARSTAR Auto Body Repair Experts.  “People are buying new vehicles, which are more expensive to repair, or spending out-of-pocket to repair their existing vehicle.  In addition, Mother Nature delivered a tough winter across North America, and we’re seeing those damaged vehicles in the repair cycle now.”
 
From Entrepreneurial Idea to International Business Model
 
When CARSTAR began in Kansas City in 1989, it created a platform to link independent body shops together to standardize repair processes and business practices, collectively buy more efficiently and create a new repair industry model that would be welcomed by consumers and the insurance industry alike.  CARSTAR pioneered the industry by creating the practices of customer satisfaction, financial measurements and ongoing improvements and consistency on a large scale.  This not only drove a national brand platform for consumers, it created a reliable network of high-quality body shops for the insurance industry.
 
Today, CARSTAR is the largest multi-shop owner (MSO) network and most trusted brand of collision repair in North America.
 
A significant change that has driven the overall growth of the industry is the influx of private equity investment that is driving consolidation among small chains and vertical alignment with key suppliers like paint companies and rental car companies.  For example, Champlaign Group owns CARSTAR, Carlyle Group owns Service King, part of Hertz and bought DuPont’s paint division, and Leonard Green & Partners purchased CCC
 
“When CARSTAR began, the collision business was very much a ‘seat of the pants’ type operation with few standards, processes or programs,” said Byers.  “Today, we have helped turn it into a sophisticated industry that is recognized by the leading insurance companies, Wall Street and top investors.”
 
About CARSTAR
CARSTAR Auto Body Repair Experts is North America’s largest Multi-Shop Operator Network of independently owned collision repair facilities with more than 440 locations in 31 states and 10 Canadian provinces. CARSTAR delivers national scale, consistently high-quality vehicle repairs, repeatable outcomes and the industry’s highest customer satisfaction ratings; all repairs are backed by a national warranty and service guarantee.  For more information visit www.carstar.com.

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