Industry reports find that the automotive refinish industry, projected to grow from $12.43 billion in 2024 to $19.25 billion by 2031, is seeing a strong shift toward sustainable practices. Sustainability and productivity are closely linked in this evolving landscape, as efforts to minimize environmental impact often drive operational improvements. Reflecting this trend, major players increasingly focus on low volatile organic compounds (VOC) and waterborne coatings to meet regulatory pressures and consumer demand for more sustainable solutions.
For body shops, the sustainability journey is a matter of competitiveness and operational improvement. Here’s a look at how collision repair facilities can begin integrating sustainable practices — from energy efficiency and emissions tracking to waste reduction — to enhance their productivity, workplace and environmental footprint.
In the years ahead, body shops will face increased expectations for environmental accountability — and not all of these requirements are driven by regulation. In recent years, players in all industrial ecosystems have developed sustainability goals and are working with their value chain partners to address those goals. The automotive refinish industry is not insulated from these influences up and down the value chain. Corporations with multinational operations that adhere to ambitious sustainability goals drive this shift across the regions in which they operate. European regulations, for example, often lead the way with stringent environmental and reporting standards that many companies adopt globally to streamline compliance, thereby creating a cascading effect on their customers and suppliers globally. For North American body shops, regardless of local laws, there’s an industry-wide trend toward greater transparency in emissions reporting and environmental impact.
Let’s address two primary factors that drive this trend: the Science Based Targets Initiative (SBTi) and collision center consolidation. SBTi, a collaboration that helps companies and financial institutions set science-based targets to reduce greenhouse gas (GHG) emissions, is gaining traction, with more than 9,000 companies committing to reduce their emissions. The initiative develops standards, tools and guidance that allow companies to set scope 1, 2 and 3 greenhouse gas emissions reduction targets, in line with the goals of the Paris Agreement. As a part of scope 3 downstream emissions reduction initiatives, paint manufacturers are increasingly collaborating with customers, including body shops, to lower emissions through product innovation and process improvement solutions.
Collision center consolidation is ongoing, leading to shifts in the industry ownership structure. Stakeholders demand stronger sustainability practices from these corporate-owned repair facilities. As part of larger corporate entities, body shops are more likely to be asked for emissions reporting and impact metrics as part of these companies’ sustainability commitments. Whether mandated by regulation or corporate policy, body shops will increasingly be expected to meet new sustainability benchmarks to compete.
Another factor to note is insurers. Most large insurance companies have ambitious sustainability goals, including emissions attributable to the assets they own or underwrite. In addition to their current repair assessment and evaluation criteria, they’re expected to add sustainability metrics like emissions per repair. For instance, some large insurance players in Europe already demand emissions metrics as part of repair estimates. Body shops with a greater understanding of vehicle repair sustainability parameters will have a competitive advantage in winning more business.
By focusing on productivity, body shops reduce their environmental footprint and realize efficiencies that can directly impact the bottom line. Take, for example, life cycle assessment (LCA), a method used to calculate the environmental impact of a product from the beginning of its life (material sourcing and production) to its end (application and disposal). For body shops, understanding the full life cycle impact of their processes can help identify opportunities to reduce energy consumption, waste and emissions at every step. From minimizing paint overspray to using more efficient curing methods, these adjustments can help shops use fewer resources while lowering costs.
Innovations in digital color-matching tools and automated paint-mixing systems can help enhance accuracy, reduce material waste and improve operational efficiency.
The automotive refinish industry is contending with an ongoing shortage of skilled workers for body shops and needs to compete with other sectors to attract and retain a motivated talent pool.
Workspace environment can play a significant role in employee satisfaction and productivity. Clean, efficient and well-ventilated workspaces remain essential for making body shops safer and more attractive workplaces. For example, evolving California regulations push for lower VOC emissions to reduce environmental impact and protect employee health. Adopting low-VOC or waterborne coatings and using efficient air filtration systems can foster a safer and more comfortable work environment.
Innovation continues to transform collision repair, paving the way for smarter, more efficient workflows. Instead of bulky computer systems, compact devices, such as virtual assistants in the mixing room, offer a clutter-free workplace. The virtual assistant’s advanced environmental sensors help ensure optimal paint mixing, saving technicians 83 hours annually and creating a more comfortable work environment to help attract skilled talent. Also, the innovation helps body shops become more sustainable by reducing energy consumption by 500 kilowatts annually without a large computer running daily. By integrating these practices, body shops can position themselves as appealing workplaces in a competitive labor market.
The growing emphasis on sustainability, operational efficiency and workforce well-being presents challenges and opportunities for body shops. Adapting to these demands requires solutions that balance compliance, productivity and environmental impact.
Practical steps like adopting low-VOC coatings, improving energy efficiency and using automated tools such as automated paint-mixing systems can help shops reduce waste and operating costs while meeting sustainability benchmarks. These changes can enhance processes and create safer, more attractive workplaces, helping body shops retain skilled technicians and appeal to new talent.
By integrating sustainability practices and innovative technologies, body shops can enhance productivity, reduce their environmental footprint and position themselves for long-term success in an increasingly competitive industry.