Independent garages are bracing themselves for a difficult year ahead, according to a new survey by the Motor Ombudsman.
Rising operational costs, taxes, and utility bills are expected to be the biggest challenge for nearly nine in ten (89%) garages and workshops in 2025, up from 75% in 2024.
This financial strain coincides with a predicted decrease in customer demand. Over half of repairers (56%) anticipate motorists delaying essential repairs due to tighter budgets, further impacting their bottom line.
The survey also highlights the ongoing challenge of recruiting qualified technicians, with almost half (48%) of businesses reporting difficulties in this area. To attract and retain staff, a majority (55%) of repairers increased wages in 2024.
The rising popularity of electric vehicles (EVs) presents a complex situation for repair shops. While EVs require less maintenance than traditional petrol and diesel models, reducing revenue opportunities for some (21% this year compared to 32% in 2023), the industry is still adapting to this shift.
Despite these challenges, the survey reveals a spirit of resilience among repair businesses. Nearly half (42%) plan to invest in refurbishing their premises, and a similar number (39%) intend to expand their workforce. Additionally, almost a third (29%) are considering adjusting their opening hours to improve work-life balance for staff.
Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman, said: “Our latest survey of businesses in the service and repair sector shows 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, thereby 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.”
Bill added: “However, amongst the possible hurdles set to be faced by businesses this year, there are positives to take away from the study in that there is still an appetite to invest to provide an even better customer experience. As garages weather this latest ‘storm’, we will continue to support and shine the spotlight on our accredited businesses so that even more consumers are aware of the benefits of using a repairer that is committed to the high standards laid down by our Motor Industry Code of Practice for Service and Repair.”
The findings of this survey suggest a potential decline in garage service use across the UK due to a combination of economic pressures on both businesses and consumers. Garages are facing rising operational costs and struggling to recruit qualified staff, while customers are likely to postpone non-essential repairs to save money. This trend could have implications for road safety if car maintenance is neglected.
To view the businesses that are accredited to The Motor Ombudsman’s Service and Repair Code, please click here.
