A new survey of garages by the UK Motor Ombudsman shows rising costs will pose biggest challenge for three-quarters of vehicle repairers in 2024.
75% of service and repair businesses polled said rising operational costs, taxes and energy bills will be the most significant operational challenge in 2024, followed by paying more for spare parts (58%), and recruiting qualified technicians to meet workload demands (58%)
Customers putting off essential repairs, and vehicle owners being unable to afford routine maintenance, is also expected to affect the bottom line and customer footfall for around half of vehicle repairers this year
The research equally revealed that 52% of businesses plan to invest in recruitment in 2024 to address staff shortages, which impacted 56% of survey respondents last year.
The Motor Ombudsman’s survey of independent garages and franchise dealer workshops provides an annual barometer of business sentiment on the UK’s service and repair sector.
In light of this increased expenditure, just over half of respondents (54%) stated that they would be confronted with the dilemma of having to raise prices in order to sustain a viable business that is costing more to run. This also comes at a time when garages foresee consumers putting off essential repairs (54%), and routine maintenance (49%) to save money, as household finances remain under strain. This mirrored the findings about the principal hurdles encountered in 2023, where 53% of businesses had witnessed customers avoid bringing their car in, so as to reduce the level of spend on their vehicles due to the widely-reported cost of living crisis.
In terms of the positive developments that garages and workshops are seeking to bring to their business 35% said that they will be considering refurbishing existing premises to improve the look and feel of the experience for customers, with a fifth planning to add workshop and testing bays, as well as additional on-site electric vehicle charging points to accommodate growing demand for EVs. Furthermore, nearly a quarter stated they intend to participate in webinars and training courses to bring improvements in the way that they work across their organisation.