That is true to a degree. The old adage that you get what you pay for will still hold true, even more so in tougher times.
There are good body restoration & paint shops that will work between $40 to $60 per hour for first class restoration work. Using a universal shop that did fender flips and color coats of rubber bumper repairs to do legitimate restoration my not end up yielding the final results that you desire.
Why so high a labor rate? Workers comp, insurance, hazardous waste compliance, clean air issues, very high consumable supply costs, limits on the skilled labor pool and on and on. Do you want an apprentice working on your labor of love, getting it ready for the final paint work? What's on top will only look as good as what's done underneath. The same applies to the plating industry.
Chrome plating, if done properly, will be a tedious and labor intensive process from the chrome removal (blasting), to repairing and rust or damage, to applying the copper, then polishing, then the nickel, and polishing again and finally the chrome. Just the bubble and paper costs for packaging when done has gone up nearly 30% over the last two years. Hazardous waste removal and regulatory compliance costs of these shops is astronomical and with the new administration going in, don't look for any relaxation of environmental laws, no matter what the economy does. Waxmann has made that clear already.
How many new chrome plating and body shops has anyone seen open up in the last ten years and how many have closed? That will give you part of the answer as well.
Yes, there are much cheaper ways to get chrome on a bumper, but how long will it be there?
I agree that the supply of chrome or body restoration shops and the demand will dictate price, but I don't look for any of these prices to begin to tumble dramatically anytime soon. The good shops will stay busy, the mediocre will take on other work to survive and the bad will just fade away. Along with any of the good ones who may get sick of the regulatory and labor issues and just say to he$$ with it and close.
At least that's the way that I see it here in New England for the next few years. Other areas may have different results to the economic situation.