The motor repair industry is steering straight into a “perfect storm” of challenges in 2025. Rising operational costs, hesitant consumers, and a skilled labour shortage are creating a bumpy road ahead for independent garages and franchise workshops alike.
According to the latest Motor Ombudsman survey, these pressures are driving significant uncertainty for repair businesses. Let’s have a look at the key issues, survey findings and how garages can navigate them.
Rising Repair Costs
It’s no surprise that escalating operational costs top the list of concerns for 89% of repairers, up from 75% last year. With energy prices rising after the January 2025 cap hike and general inflation adding to the squeeze, garages are feeling the pinch. Factor in higher vehicle parts costs (predicted by over half of businesses), and the financial pressure is mounting.
Yet garages aren’t rushing to pass on these rising costs to their customers. About 42% of repairers are holding back from passing on the full burden, acknowledging that many households are already struggling. This balancing act is commendable, but it comes at the expense of already tight margins.
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Consumer Cost-Cutting
It seems motorists are adopting their own cost-saving measures. The survey found that 56% of garages expect consumers to delay essential repairs, while 48% foresee fewer routine maintenance bookings. This trend could mean quieter workshops in the short term but poses risks for vehicle safety and long-term repair needs. It’s a case of “fix later, pay more,” but its a difficult message to land to someone already struggling to make ends meet.
Recruitment Struggles in the Motor Repair Sector
Staffing shortages are the proverbial spanner in the works. Nearly half of garages (48%) cited recruitment as a significant hurdle, with 55% increasing wages in 2024 to attract skilled technicians. Despite these efforts, finding qualified staff remains a challenge. The motor repair industry needs to gear up for a long-term solution to attract new talent.
The EV Maintenance Impact
Electric vehicles are both a blessing and a challenge. With fewer moving parts, EVs require less routine maintenance, which is great news for consumers but less so for garages. Only 21% of garages expect EVs to significantly contribute to their income in 2025, down from 26% in 2024 and 32% in 2023. While the shift to EVs aligns with a greener future, garages will need to adapt their training procedures along with their revenue models to offset the reduced maintenance demand.
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Strategies for Resilience
Amidst the storm clouds, many garages are taking proactive steps to future-proof their businesses. The survey highlights some encouraging trends:
- Refurbishments: Around 42% of garages plan to invest in upgrading their premises to enhance customer service.
- Workforce Expansion: Despite recruitment struggles, 39% aim to grow their teams, recognising that skilled staff are key to navigating these challenges.
- Flexible Hours: Nearly 29% are exploring adjusted opening hours to improve work-life balance for employees—a move that might also attract fresh talent.
- Supply Chain Diversification: A quarter of garages (24%) are diversifying suppliers to reduce delays caused by parts shortages.
Bill Fennell, Chief Ombudsman at The Motor Ombudsman, summed it up: “Our latest survey of businesses in the service and repair sector shows an interesting juxtaposition of rising costs to operate on the one hand, and less revenue due to consumers delaying repairs and maintenance on the other, thereby setting the scene for a more challenging trading environment. This of course may be amplified by continued difficulties recruiting qualified staff to meet customer demand, meaning some significant headwinds persist this year for the nation’s garages and workshops.” Read more…
Looking Ahead
The challenges for garages in 2025 are undeniable, but so is their resilience. By investing in infrastructure, focusing on recruitment, and adapting to the evolving automotive landscape, repair businesses can weather this turbulent period.
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