Poll shows rising costs pose biggest threat to vehicle repairers in 2024

Three-quarters (75%) of service and repair businesses polled foresee rising operational costs, taxes and energy bills to be the most significant operational challenges in 2024, followed by paying more for spare parts (58%), and recruiting qualified technicians to meet workload demands (58%).

According to the 2024 The Motor Ombudsman’s annual survey of independent garages and franchise dealer workshops, 54 per cent of businesses plan to invest in recruitment in 2024 to address staff shortages, which impacted 56 per cent of survey respondents last year.

With both new and used electric vehicles (EVs) increasing in popularity amongst consumers, and with fewer mechanical parts than petrol and diesel models, reducing the need for maintenance, 26 per cent of repairers said powered cars would “provide less scope for additional revenue opportunities and replacement parts in 2024”. But that’s down from 32 per cent this time last year.

On the upside, over a third of respondents (35%) explained 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 MOT bays, as well as additional on-site electric vehicle charging points to accommodate growing demand for EVs.

Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, said: “Our latest study presents a clear picture in that garages and workshops will still have to contend with a number of underlying challenges this year, with rising costs one of the most pertinent, as this ultimately affects their bottom line. This will need to be balanced with the need to remain competitive in order to deliver an attractive proposition to motorists, at a time when household budgets remain under strain.”