Spotlight 14 www.aftermarketonline.net MARCH 2025 Garages facing ‘perfect storm’ Workshops face a challenging year in the face of tough economic headwinds, according to a new poll — but investments in staff, training and new technologies offer the promise of a silver lining Businesses across the UK are braced for a year of heavy economic weather, not helped by the impending increase in National Insurance, and the automotive sector is no exception. A new poll of independent garages and franchise dealer workshops has revealed that rising operational costs, taxes and utility bills are set to pose the biggest challenge for almost nine in 10 (89%) vehicle repairers this year. According to The Motor Ombudsman’s (TMO) latest annual survey*, this is 14 percentage points higher than last year — suggesting firms may encounter greater financial strains in 2025 when compared to the previous 12 months. This comes at a time when consumer purse strings are already being tightened, according to the poll, which will likely have greater urgency due to increasing energy prices. Bill Fennell, TMO’s chief ombudsman and MD, said the survey showed 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 — 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.” TMO’s research of more than half of repairers (56%) indicates motorists are expected to cut back on essential repairs in a bid to save money, with 48% saying similarly that they are forecasting vehicle owners to forgo ad hoc maintenance and routine maintenance, such as servicing, to cut running costs in the shorter term. SMMT: More than 550 new apprentices have already joined the sector this academic year
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