Auto Service News

Repair demand rises as outlets fall

[ad_1]

Image credit: Depositphotos.com

The do-it-for-me (DIFM) automotive service and repair market has experienced significant shifts over the past decade, with a growing demand for vehicle repairs but a declining number of repair outlets.

According to data from Lang Marketing, while the volume of products installed by automotive technicians increased by more than 25 per cent from 2013 to 2023, the number of repair outlets fell by 10 per cent.

The COVID-19 pandemic had a profound impact on the DIFM market in recent years. In 2020, the market saw a double-digit decline in light vehicle repairs across the United States, coupled with a sharp reduction in the number of repair outlets. Although the DIFM market regained its product volume over the next three years, the total number of repair outlets did not recover, indicating a lasting effect of the pandemic on service infrastructure.

However, while many repair outlets struggled, repair specialists — outlets focusing on a limited range of vehicle services — showed resilience. Although Lang reported a decline in outlets in 2020, they rebounded from 2021 to 2023. Similarly, foreign specialists, which concentrate on the repair of foreign nameplates, recorded the fastest increase among DIFM outlet groups, particularly between 2021 and 2023.

Tire stores that also do vehicle repairs saw modest growth between 2013 and 2018 but faced a decline during the pandemic, which has continued slowly. Conversely, vehicle dealers, which lost about 3,000 outlets between 2008 and 2013, began to recover by 2018. Despite a reduction in 2020, they added locations between 2021 and 2023, Lang reported.

Aftermarket Implications

The changing landscape of repair outlets has substantial implications for the automotive aftermarket, Lang noted.

With fewer service stations and garages, there is increased pressure on the remaining outlets to meet the rising demand for repairs. This shift affects the competitive strength of distribution channels supplying the DIFM market and impacts the volume of aftermarket brands and the share of product volume captured by both dealers and independent repair outlets.

Going forward, Lang observed, repair specialists and foreign specialists are expected to increase their population counts and market shares. In contrast, service stations and garages will likely see the largest declines. Vehicle dealers will continue to expand their share, further reducing the market share of independent repair shops.



[ad_2]

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button