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Home » News & Trends

Canadian Collision Repair Values Fall Again as 60,000-Order Study Shows Shop Efficiency Slipping

Nate Brewer by Nate Brewer
August 17, 2026
Reading Time: 6 mins read
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Canada’s collision-repair market has reached an uncomfortable turning point. Fresh July data covering more than 60,000 repair orders across the country shows insurer-paid repair values declining again, just as the operational improvements that had helped shops compensate for weaker jobs began to lose momentum. Through the spring, Canadian repairers were moving vehicles through production faster, increasing productive labour time and carrying less work-in-progress. July disrupted that pattern. The latest national benchmark says production efficiency softened while average repair-order values continued their downward run. For collision businesses already balancing expensive equipment, skilled labour and increasingly sophisticated vehicles, the combination matters more than either trend alone. A lower-value repair can be manageable when a shop gains efficiency; falling revenue per job becomes harder to absorb when throughput weakens at the same time.

July Breaks the Spring’s Better-Efficiency Pattern

The July 2026 Pulse of the Industry results represent more than another monthly fluctuation in repair pricing. Collision Repair magazine and Vancouver-based AutoHouse Technologies reported on August 14 that insurer-paid repair-order values continued falling while overall production efficiency softened. The benchmark draws directly from more than 60,000 repair orders per month across Canada and tracks repair values, cycle time, touch time and work-in-progress. Its methodology also normalizes the data and screens unusually large variations so that individual jobs do not distort the national picture.

What makes July particularly significant is what happened beforehand. During the spring, repair values were already weakening, but shops were partially countering the pressure through stronger operational performance. Vehicles were spending less time in production and technicians were generating more labour hours per repair day. July is the first recent indication that those two trends may be weakening simultaneously. The published July summary does not disclose precise new cycle-time or touch-time figures, so the important verified finding is directional: efficiency softened after several months of improvement while repair values continued downward.

Insurer-Paid Repair Values Have Been Sliding for Months

The decline did not begin in July. Average insurer-paid repair-order value fell by $100 from March to April, another $50 in May and another $131 in June. Those three monthly decreases total $281 before the additional July decline is even considered. By June, the average insurer-paid repair was already $231 below the previous six-month benchmark. The July results then extended the downward movement, with AutoHouse saying the average repair-order value had also fallen below its July 2025 level.

That distinction matters because “repair value” in this benchmark does not refer to the resale value of a damaged vehicle or the value of a collision business. It refers to the average sale attached to an insurer-paid repair order. A shop processing the same number of vehicles can therefore generate less repair revenue when the average job becomes smaller. AutoHouse described the persistence of the decline as a sign of a more competitive repair environment. Three consecutive documented monthly drops followed by another decline in July make the trend harder to dismiss as a single unusual month.

Cycle Time Had Been Moving in the Right Direction

Before July’s setback, one of the clearest encouraging signals was cycle time—the number of calendar days between a vehicle entering the repair process and being delivered. The national average stood at 13.8 days in April, improved to 13.2 days in May and reached 13.1 days in June. That may appear to be a modest change, but reducing the average stay by roughly seven-tenths of a day across thousands of vehicles can meaningfully affect shop capacity, customer waiting periods and the amount of unfinished work occupying production space.

Touch time was improving as well. Canadian repairers averaged 2.5 labour hours produced per repair per day in April. The figure rose to 2.6 hours in May and held there in June. The significance is operational: a vehicle can remain physically inside a collision centre while receiving surprisingly little productive labour on a given day because it is awaiting parts, approvals, calibrations or movement between departments. Higher touch time means more of that calendar time is being converted into actual repair work. July’s reported softening therefore interrupts a measurable spring improvement rather than an already deteriorating efficiency trend.

Shops Had Cut Their Work-in-Progress Dramatically

Another major change occurred in work-in-progress, or WIP. The national WIP ratio declined from 12.7:1 in February to 12.2:1 in March, 11.6:1 in April, 10.6:1 in May and 10.5:1 in June. At a 10.5:1 ratio, a shop is effectively carrying about 10.5 days of repair inventory at its current daily production rate. June’s figure was the lowest reported level in more than a year and was 9.2% below the preceding three-month average.

A lower WIP ratio can be good news, but it requires careful interpretation. Too many vehicles sitting in a facility can create congestion, complicate scheduling and make it harder to keep technicians continuously productive. A leaner pipeline can produce cleaner flow. However, Collision Repair and AutoHouse have also cautioned that falling WIP can mean fewer repair opportunities are entering shops. That distinction becomes more important when average repair values are simultaneously falling. A well-controlled shop with intentionally lower inventory is very different from a facility with empty production space because claim volume has weakened. July’s efficiency decline makes that question increasingly important.

Top Shops Show How Large the Productivity Gap Can Be

The difference between an average collision centre and a top-performing operation is substantial. In June, the national average cycle time was 13.1 days, while the top 10% of repairers averaged only 5.8 days. In May, leading facilities averaged 5.7 days compared with 13.2 days across the broader industry. That means elite operators were completing the repair process in less than half the time associated with the national average, even though they were working in the same wider Canadian market.

Touch time shows a similarly dramatic gap. The industry produced an average of 2.6 labour hours per repair per day in June, while the top 10% generated 4.8 hours. Earlier reporting linked strong performance to disciplined intake, repair planning, WIP control and production flow rather than simply putting more vehicles through the door or asking technicians to work longer. Those differences become financially important when repair-order values decline. A highly efficient facility has more opportunity to offset smaller average jobs by increasing throughput. A slower operation has considerably less room to absorb declining revenue per repair without placing pressure on margins.

Falling Repair Values Do Not Mean Cars Are Getting Easier to Fix

One potential misconception is that smaller average repair orders indicate collision work itself is becoming simpler. Broader claims data suggests otherwise. Mitchell’s Canadian figures for the first quarter of 2026 put average repairable severity for battery-electric vehicles at C$7,185, compared with C$6,490 for plug-in hybrids, C$6,370 for mild hybrids and C$5,605 for internal-combustion vehicles. Battery-electric vehicles accounted for 4.94% of Canadian repairable claims during the quarter, while mild hybrids reached 5.28%.

Modern repair complexity also extends beyond propulsion systems. The Automotive Industries Association of Canada says advanced driver-assistance systems, changing manufacturer procedures and increasingly sophisticated diagnostics have become standard features of contemporary repair environments. A damaged bumper may now involve sensors or cameras, while seemingly routine work can require scanning, calibration or manufacturer-specific procedures before a vehicle can safely leave the shop. Consequently, the decline in average insurer-paid repair-order value should be read as a market and job-mix signal rather than proof that the underlying technical burden is disappearing.

Labour and Training Pressures Make Efficiency Harder to Protect

Shops are trying to maintain productivity while facing another structural challenge: finding and developing qualified technicians. Employment and Social Development Canada’s occupational projections, cited by both the federal Job Bank and AIA Canada, indicate automotive service technicians face a moderate national risk of labour shortage between 2024 and 2033. AIA Canada reports that approximately 29% of the country’s automotive service technician workforce is already aged 50 or older, increasing the importance of replacing retiring workers while retaining experienced employees.

The skills required are also expanding. Repair professionals increasingly deal with software, sensors, high-voltage systems, diagnostics, ADAS and continuously changing OEM procedures. AIA Canada has argued that even graduates with strong foundational training often need additional shop-floor support because classrooms cannot perfectly reproduce the speed and variability of real repair environments. That makes efficiency a people issue as much as a scheduling issue. A facility can purchase advanced equipment and management software, but cycle time can still suffer if there are too few experienced employees to diagnose damage, plan repairs, perform specialized work and mentor newer technicians.

The Next Few Months Will Show Whether July Was Seasonal or Structural

One weak efficiency month does not establish a lasting downturn. Collision Repair’s July analysis explicitly raised the possibility that the production slowdown could be seasonal. The more persistent concern is repair value: it declined repeatedly through the spring and again in July. If efficiency rebounds while values stabilize, July may eventually look like a summer interruption. If both indicators continue weakening, shops could face the less comfortable combination of lower revenue per repair and fewer productive jobs moving through the facility each day.

Recent results from Winnipeg-based Boyd Group Services illustrate why operating discipline remains important, although its North American network should not be treated as a direct substitute for the Canadian benchmark. Boyd estimated industry repairable-claim volumes were flat to down 2% year over year during the second quarter of 2026, yet it generated positive same-store sales growth and said market-share gains played a central role. Its gross margin also benefited from operational initiatives and higher scanning and calibration margins, despite pressure on labour margins. The message for Canadian repairers is increasingly clear: when easy market growth disappears, execution becomes a larger part of the financial equation.

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