LKQ, the bodyshop industry’s only complete service provider, is sharing advice to help support its customers as they navigate rising costs and the evolving market.

Recent research underscores the critical challenges facing the bodyshop industry: average hourly labour rates have exceeded £50*, an 8% increase on last year, while the increase in Employer National Insurance is set to cost businesses an additional £900 per employee on average**. 

LKQ is sharing guidance to help support margins as work volumes level out** and as firms continue to face inflationary pressures, supported by its complete solutions portfolio for cost-efficient repairs.

Take advantage of cost savings

LKQ’s Platinum Approved Parts Programme boasts the UK’s largest selection of BS10125 compliant parts and can save bodyshops up to £150 on every repair***. All body parts and lighting in the range are selected to adhere to stringent quality standards, sourced from reliable suppliers, endorsed by network relationship partners, and reinforced by LKQ’s lifetime warranty commitment. 

Bodyshops can connect directly to LKQ Quote Services to access the UK’s widest range of collision parts (including all platinum approved parts), helping streamline the process with instant availability and pricing of parts. In 2024, LKQ issued 440,000 quotes for £239 million worth of parts – offering an average saving from RRP of over 50%. 

Recognising the evolving automotive landscape, the business is also helping bodyshops to navigate the higher cost of EV servicing, where repair costs are 29% higher than traditional ICE equivalent work****. The company released its 'Collision Parts: Hybrid and EV Range Edition' guide to help bodyshops to quickly and accurately identify the products they need to complete repairs faster and with greater precision. This allows them to handle more vehicles and improve efficiencies, to further mitigate rising costs. 

Expand business offerings to increase revenue

As well as offering cost-effective parts, LKQ is helping bodyshops to mitigate rising repair costs through its wider bodyshop proposition. 

Where customers are increasingly opting for out-of-pocket repairs rather than making an insurance claim, LKQ has also launched its industry-leading intelligent repair proposition (IRP). This includes access to specialist training through the LKQ Academy and LKQ Intelligent Repair Kits, offering customers low-cost repairs, while opening up new revenue streams and boosting profits.

LKQ also encourages businesses to look beyond parts, to longer-term investments that help build sustainable profit and growth. 

That includes investing in training and upskilling and looking at where services can be brought in-house, for example ADAS calibration. Its one-day Advanced Driver Assistance (ADAS) programme is on offer through the LKQ Academy and will be a mainstay for bodyshops, with a reported 47% of ADAS alignments being carried out in-house**. Purchasing equipment such as solvent recyclers and can crushers also helps support sustainability initiatives.

Chris O’Rourke, Managing Director at LKQ Bodyshop, said: “Bodyshops and the wider automotive industry are facing some of the toughest financial challenges we've seen in years. With National Insurance contributions rising and inflation still biting, we know margins are tighter than ever.

"We're not just watching from the sidelines. As a trusted partner, we're actively working to help bodyshops protect their business. Parts continue to make up a large proportion of the average repair costs and through our Platinum programme and Collision Parts guides we’re leveraging our brilliance and difference to help bodyshops of all sizes to unlock sustainable and profitable growth.

"The ongoing skills shortage adds another layer of complexity, putting real pressure on wages and making it harder to attract and retain top talent. We're committed to supporting bodyshops through these challenges with access to specific training through our LKQ Academy to help open up new revenue streams to reinvest back in business."

All major UK motor insurers have approved the use of LKQ parts, helping businesses maximise alternative parts usage to control rising costs and improve profitability to invest back into their operations. LKQ’s Quote Service is available free of charge to all UK bodyshops, connecting its full catalogue of more than 18,000 parts to garage management systems – providing full quotes and availability on every repair.

Find out more about LKQ’s Platinum collision parts here.