11:10 am, January 10, 2023
Rising energy bills, operational costs and taxes are set to be the biggest challenges for the automotive industry in 2023, a new survey of businesses has revealed.
A poll of independent garages and franchise dealer workshops found that the the trio of rising costs was the biggest concern for 90 per cent of respondents.
The Motor Ombudsman study also found that 64 per cent of respondents found that paying more for utilities and higher costs had reduced overall profitability last year.
Meanwhile, nearly two-thirds (63 per cent) respondents admitted to fears that motorists will be put off essential repairs due to the cost-of-living-crisis.
Similarly, 59 per cent of participants stated that paying more for replacement car components due to shortages and inflation would be another trying factor during the coming year.
According to the findings, fewer customers being able to afford routine vehicle maintenance poses another threat to footfall and revenues for 57 per cent of garages and workshops in 2023.
Elsewhere, just under half (49 per cent) said they would try to avoid passing on higher operating costs in the prices charged to customers due to the challenging economic climate.
The survey paints a tough outlook for the 12 months ahead but it does offer a glimmer of hope, as recruiting staff appears to be getting easier.
A total of 43 per cent of businesses said they were expecting to struggle when it came to adding experienced technicians a slight improvement 2022’s 50 per cent.
Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, said: ‘Following the festive break, it is a case of picking up from where we left off in 2022, as the findings from our research show that garages and workshops will have to contend with a multitude of challenges this year.
At the forefront of these will be navigating a rise in operational costs at a time when many consumers are feeling the strain on their finances, meaning vehicle maintenance and repairs could take a back seat.
‘As the headwinds facing the economy and households show little sign of abating in the short term, remaining competitive, retaining customers, and finding new revenue channels, will therefore be crucial for businesses in order to deliver a positive bottom line.
‘With a nationwide network that counts thousands of garages and workshops across the country, accreditation to The Motor Ombudsman gives businesses an effective mechanism to stand out from the crowd, demonstrating their commitment to both providing motorists with the highest standards of service and work, and to resolving disputes swiftly and effectively at no cost to the consumer.’
The Motor Ombudsman survey saw 132 businesses respond to questions online.
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
