Traditionally, basically all types of repairs were referred to panel shops from collisions to spray jobs to hailstorm damage. In the past 30 years but in particular in the past 10 years, the rise of paintless dent repair companies and their acceptance as a standard hail repair process has shifted the market somewhat. Unfortunately, this as well as other factors have placed panel beating workshops into decline.

Insurance companies have taken a strangle hold of this industry by firstly mandating all initial hail damage quotations be submitted by paintless dent repair companies. Furthermore, the introduction of preferred region contracts (including the PDR industry) have constricted pricing as part of the contractual agreements in return for volume of work. Adding to the whoes and immense competitiveness of this industry are that the number of collisions overall have reduced in more recent years with improved technologies (brake technologies), police campaigns, and stricter licensing and driving regulations. Check the report

http://www.ibisworld.com.au/industry/default.aspx?indid=440

There is no immediate concern in the PDR industry in terms of work although pricing is being attacked slowly by insurance companies. However, this may prove to be a slow process as supply and demand mean there still is a general shortage of PDR technicians particularly in the more significant hail events. Media stories in Melbourne revealed the illegal PDR technicians which with continued regulation may restrict access to international PDR technicians in the country.

With the downsizing of the panel beating industry and more exposure to PDR, it seems more and more panel beaters are wanting to train to enter into the PDR industry. Panel beaters make up most of our clients in PDR training.

As industries, there seems to be more partnerships being created between panel shops and PDR companies when hailstorms occur in the region. This is dependent on the specifics of each hailstorm: who were allocated the bulk of the work and what can be handled within a respectable time frame. As PDR gains popularity amongst consumers, having hail damage on one’s vehicle for 12 to 24 months awaiting for a repair time slot at their local panel beaters will prove unpopular in the end. Insurance companies will be under pressure to allocate work to PDR companies that can very much clear a bulk of the work within a few months in most cases. Nevertheless, it will be an interesting period over the next several years to see what unfolds.