The auto repair industry has been impacted greatly by sweeping shut downs and the move to work at home models. Travel has been reduced significantly over the past six months, and fewer miles equal fewer repairs. There is hope on the horizon as things begin to open back up. Here we take a look at five trends currently impacting the auto repair industry.
Automation And Electrification
“The increasing use of these features in modern automobiles have revolutionized the auto repair industry and is putting pressure on auto repair shops to upgrade their technology to be able to provide maintenance and repair services for digitized, automated and electric automobiles in 2020 and beyond. Owners of these cutting-edge vehicles must be confident local auto repair shops have the trained technicians and technology to properly repair these technologically advanced vehicles.”
Renewed Growth
“The global automotive repair and maintenance market is expected to decline from $693.5 billion in 2019 to $691.7 billion in 2020 at a compound annual growth rate (CAGR) of -0.3%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 7% from 2021 and reach $828.6 billion in 2023.”
Supply Chain Disruptions
“About half of the industry is experiencing supply chain disruptions (46%), and impact on business performance has been considerable, with five out of six larger companies experiencing a high level of impact (84%) compared to half of smaller companies (52%).”
More Aging Vehicles
“The aftermarket has had a difficult first-half of 2020. As industry businesses assess the impact and look to navigate the road ahead, there are a few certainties that provide a silver lining: DIY and e-commerce are growing during the pandemic, and early indicators show that that the average age of vehicles on the road will continue to rise as consumers hold on to their aging vehicles during economic uncertainty,” said Bill Hanvey, president and CEO, Auto Care Association.”
Social Media Marketing
“People are drawn to digital storytelling, and leveraging social media is a great way to grow brand awareness and connect with your audience (especially a millennial audience). Through social media ads, you have the opportunity to promote your products and services while increasing your engagement and online presence. Social media ads allow you to drive sales by creating a funnel that directly promotes prospective users to convert to your brand. By running paid advertising on social platforms, you are able to reach a highly targeted audience that may not have found you otherwise.”
Click below to download our free auto repair investment guide
