Auto Repair Industry: 2023 Update

As we say good-bye to 2022 and ring in the new year, the outlook for the aftermarket auto repair industry looks very promising. Even with recent challenges plaguing the auto industry in recent years with the onset of the COVID-19 pandemic, and supply chain headaches, the auto repair shop industry analysis shows stability and growth in 2023. Good news if you are interested in franchise ownership in this sector in the coming year.

The Auto Care Association is the go-to reference guide in the aftermarket industry. Expert analysts who study the industry, publish both the 2023 Auto Care Factbook and the 2023 Auto Care Factbook & Lang Annual, which examines data and insight. Based on findings, looking ahead to 2023 and beyond, research indicates steady and sustainable progress in the industry, with up to a 5% growth rate from 2023-2025. Automotive aftermarket repair is now expected to be a $514 billion industry by 2024.

The Future Is Technology

The key to doing well in this area is to be positioned for what is to come. Here’s how to prepare. Keep in mind, traditional and emerging markets have drivers behind the wheel of a variety of vehicles. Those cars will need upgrades, maintenance, and repair. So, having techs who can work on an assortment of styles and types will serve you well moving forward.

Keep in mind these stats looking ahead in the new year, published by Linchpin:

• In 2023, there will be an estimated 76 million vehicles aged 16 years or older in the United States.
• Drivers like new cars–the number of vehicles five years old or less is predicted to increase by almost 25%.
• 18% of American households will use an auto repair service at least once this year.
• Automobiles aged 12 years or older will increase by 15%.

It’s not just the advanced skill set of your techs that need to handle a variety of vehicles. The service centers themselves must be stocked with effective tools, parts, and updated technology to ensure the best repair and maintenance possible for customers. Experts say about 75% of repairs are done at an aftermarket repair facility as opposed to the dealership. To retain those numbers, aftermarket car care needs to be poised for change.

Changes to Expect in 2023

• EV—electric vehicles will continue to be the driving force in the automotive industry. As the number of EV’s on the road increases, prices will go down with more available inventory and many purchasers will opt for the improved environmental and economical options. However, bear in mind that the EV technology will continue to grow for service centers, and although there are industry standards, there are also plenty of brand adaptations to keep technicians on their toes and stay up to date with these variations.
• More digital technology will be integrated into vehicles to stay current with digitization in other industries. Insights from J.P. Morgan indicate this advancement is underway thanks to the supply chain issue of computerized chips starting to balance out. New cars off the assembly line are equipped with the latest digital technology in traditional, electric or hybrid models.
• Based on perspective from McKinsey and company, their auto repair shop industry analysis shows more and more advanced driver-assistance systems (ADAS) and self-driving or autonomous cars will be part of the near future with additional companies throwing their hat into the ring. In fact, some studies show that self-driving cars may be safer and may also improve fuel efficiency by 10% and reduce CO2 emissions by 42 million metric tons annually.

AAMCO Franchise Opportunity

AAMCO is a well-known automotive franchise specializing in car repair, especially transmissions. People trust them for their expertise in complex car repairs. AAMCO’s successful business model, along with training and support, gives franchisees a profitable and lasting chance for success.

The widespread national presence of AAMCO franchises underscores the brand’s scale and universal appeal. AAMCO is the top leader in transmission repair franchises. They prioritize customer trust, strategic marketing, and strong support for franchisees. 

To learn more about starting a successful transmission repair franchise, request a free franchise information report.