As the New Year approaches, there are some positive economic signs that should give repair shops a reason to celebrate:
1. Plenty of Repairs
Demand for mechanical repairs and service will continue to grow as consumers schedule repairs that were put on hold during the recession. Auto repair industry revenue is expected to increase 2.1% in 2014. In the next five years, you should see an average increase of 1.7% in revenue. – IBISWorld
2. Not Enough Skilled Mechanics
Because cars are becoming increasingly more electronic and computerized, finding skilled labor to repair the complex systems in newer vehicles is becoming more difficult. Many mechanics left the industry during the recession, and entry back into the industry can require an investment in time, training, and certification. On top of this, ASE’s Tony Molla reports that of the 333,000 automotive professionals who hold ASE certifications, the average age is 42 years old. And truck technicians are even older – with an average age of 52-53. So many technicians today are going to be retiring in the next 7-12 years. Just to keep up with attrition, some estimates say we are soon going to need 60,000-75,000 new technicians each year just to meet demand. – Bureau of Labor Statistics and ASE
3. Increased Wages
Because of the increase in demand for repairs and a shortage in trained technicians, wages are expected to increase 1.2% in the next year. While wages have not yet reached what they were before 2007, they have increased every year since 2010 and are expected to continue to increase over the next five years. – Bureau of Labor Statistics and IBISWorld
4. Decrease in DIY
In the recent past, auto repair shops have faced competition from auto parts stores as consumers began doing repairs and maintenance themselves to try to save money. This trend is ending. Revenue from auto parts shops decreased for the first time in 2013 and it’s expected that auto part stores will continue to close over the next 3 years. – IBISWorld
If you would like to learn about becoming a RepairPal Certified shop, simply fill out the short form in the upper right of this page, or you can call or email us directly.
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