This is the time of year when businesses analyze the current state of their industry in the hopes of building on trends for the year ahead. As 2022 begins, the auto repair industry is poised to perform very well, and as someone contemplating an investment in after-market car care, the industry should be extremely attractive. Let’s take a look at the current state and what’s in store this year.
The aftermarket car care industry actually did very well in the past two years, perhaps accelerated by consumer demand during the Covid-19 Pandemic. Due to automotive shortages during the pandemic, Americans were left with few options but to keep driving the car they have in the garage. Pandemic shut-downs put manufacturing on hold for new cars along with computer chip shortages and supply chain issues, plaguing most industries, which has pumped the brakes on new car sales. According to J.D. Power, new vehicle sales are down 14 percent from this time last year, and down 25 percent from 2019.
That equates to the extension of an already-existing trend: consumers hanging on to their vehicles longer, and those cars needing preventative maintenance and repair. Research shows in 2022, there will be an estimated 76 million vehicles aged 16 years or older in the United States, and 18 percent of American households will use an auto repair service at least once a year. Auto repair shops are not only essential, but they are proven to be recession resistant, and their economic stability makes them one of the hottest franchises of 2021.
The Next Year for the Auto Repair Industry
As we usher in 2022, the catch word is technology. Advancements in vehicle technology mean cars are built differently, perform differently and are repaired differently. For those in the auto repair industry, if you are not keeping up with the trends, you will be left behind. The time is now to position yourself to go into the future because within two decades A Bloomberg New Energy Finance study shows that the global electric vehicle market will surge. Electric vehicles (EVs) currently make up only three percent of car sales worldwide. By 2025 electric vehicles (EVs) will reach 10 percent of global passenger vehicle sales, growing to 28 percent in 2030 and 58 percent by 2040.
There is pressure for automotive repair shops to train mechanics on these new technologies and computerized systems. Repair shops have pressure to upgrade their technology to provide maintenance and repair services for digitized, automated, and electric automobiles in 2022. Plus, repair shops need to let their customers know they are specialty trained to handle these advanced vehicle repairs.
Technicians must be well-versed in older cars on the road, new models and EV’s. That is a great deal of service under one roof. Existing brands will have to reinvent themselves and expand their scope of services.
AAMCO in 2022
In fact, that’s just what we’ve done here at AAMCO. We are a total car care franchise strategically positioned to drive into the future. Keeping up with the times is why we have been an industry leader for more than 50 years.
We know that while the auto repair industry is quickly trending toward more automotive technology fixes, today’s demand still requires expertise in complex car repair. AAMCO is the only brand in the industry with the expertise, technical investment, and customer trust to repair the cars of both today and tomorrow. We’ve invested a significant amount into technology, tech training, and education to make sure our centers are the first choice for the booming auto repair aftermarket.
AAMCO University is our state-of-the-art training facility offering 300 hours of classes for franchise owners and their technicians. The campus features a high-tech garage where technicians learn to repair electric, hybrid, and other modern vehicles.
If you are ready to take the next step in the new year to own an auto repair, request info about franchising with AAMCO.