By 2022 and beyond, several potentially game-changing events and problems will have greatly changed the auto and auto repair industries’ outlook. Auto body parts supplier that wants to be successful in 2022 and beyond need to start preparing their facilities and employees for a future that will be very different because of new and transformative trends. They will need to buy more modern tools, equipment, and machinery to finish the job. Because of this, many car mechanics will need more education and training to stay competitive after 2022 and in the years after that. Several current trends are making it hard for people to fix their cars, such as the following.
Better reliability of vehicles:
The vehicles that are being made now are more reliable than ever before. When it comes to oil changes, many cars can go for years and thousands of miles without needing to be serviced. Because of this maintenance, the car had to be taken to the shop for repairs often. With synthetic engine oils that don’t need to be changed as often and dealerships that pay for maintenance and repairs for a few years after a car is bought, these new, more reliable cars will change the role of the auto repair shop in a big way.
Short-term car loans are becoming more popular:
As vehicle lease prices keep going up, auto repair shops will have a big effect in 2022 and beyond. Between 2009 and 2016, there was a big jump in the number of leases signed. More and more people are leasing their cars instead of buying them, and this trend is likely to continue. It’s good for businesses that fix cars but won’t have as much work unless they work with companies that lease cars.
Less demand for auto parts:
The demand for replacement vehicle parts is also expected to go down by 2022, hurting the car repair industry. Thanks to improvements in automotive technology, car owners are finding it harder and harder to do routine maintenance and repairs on their own. Because of this, the share price of well-known auto parts stores like O’Reilly Automotive has dropped by about 22%. Automotive experts think demand will stay low through 2022 and beyond because parts are getting better, and cars don’t need maintenance as often as they used to.
Repairs are best done at dealerships:
Recently, more and more car owners are taking their cars to dealerships for maintenance and repairs. Because of this, the number of people going to auto repair shops is slowly decreasing. The auto industry says this is because more people are leasing cars from dealerships. It will be hard for small, locally owned auto repair shops to find a way to get into that market.
Increases in digitalization, electrification, and automation:
Because of how often these new car features are being used, the auto repair business has changed significantly. By 2022, auto repair shops must change technology to fix and maintain digitally-enabled, automated, and electric vehicles. The owners of these high-tech cars need to ensure that the auto repair shops near them have the skilled workers and high-tech tools they need to fix their cars well.
Hopeful views of the future:
The future looks good for the auto repair industry. Everyone in the group needs to be in the right place. People in established and new markets will need to improve, fix, service, and maintain hundreds of millions of new and old vehicles. Even more important, 75 percent of the aftermarket automotive repair services are done by independent shops. Service centers can keep running a profitable car repair business for a long time if they keep looking for new equipment and technology and ensure their employees are properly trained.