1. Auto Repair Market Profiler 2018
Brought to you by Media Group Online, Inc.
Fixing for a Good Year
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2. Steady Driving Ahead
According to Statista, 2017 automotive repair revenues in the US are projected to reach $ billion, an increase of 1.8%. Revenues for 2018 are forecasted to be $ billion, a 1.4% increase from 2017.
IBISWorld estimates the “auto mechanic” industry totals more than 258,416 businesses, generating $64 billion in total revenues, excluding car dealerships, auto parts stores and gas stations that provide service as well as body shops and oil change centers.
The industry is highly fragmented, with individual mechanics (no employees) accounting for 64.5% of total industry establishments. None of the national auto repair chains, such as Jiffy Lube, Midas or Monro Muffler, have more than a 5% share.

3. Older Cars Rule the Road
According to Media Group Online’s January Automotive Update Report, total new light-vehicle sales for 2017 were million, compared to 2016’s million units. Edmunds projects 2018 sales will be million.
The good news for independent auto repair shops is that the average age of vehicles on the road during was a record 11.6 years. With a strengthening economy, people will be able to afford repairs when needed.
In addition, approximately 3.5 million leased vehicles will be returned through 2017, adding to used-car inventories. At three years old, many will need repairs. Leasing decreased to less than 30% of sales during 2017, after three years of increases.

4. Body Shops Business Solid
According to survey data from BodyShop Business, 62% of body shop owners thought their businesses performed better during 2017 than the previous 5 years and 83% think their businesses will be more successful during the next 5 years.
Body shop owners reported that, on average, their gross profit margin was 38%, and 67% said their profitability increased compared to Almost a quarter, 24%, of owners write 31+ estimates and 18% perform 31+ jobs per week.
More than a third of body shop owners, 36%, said they spent $1,001 to $5,000 annually for advertising and promotions; 17% spent $5,001–$10,000, 10% spent $10,001–$20,000, 8% spent $20,001–$50,000 and 5% spent more than $50,001.

5. Regular Maintenance Saves Consumers Money
Almost a third of American drivers, or 64 million people, cannot afford to pay $500 for vehicle repairs, according to AAA. In general, most drivers set aside approximately $50 per month for maintenance; those who do not are more likely to need costly repairs.
New vehicles cost, on average, $1,186 per year to maintain and repair.
Electric car motors only have one moving part, compared to dozens in traditional internal-combustion engine, so electric vehicles have the lowest annual maintenance and repair cost, or $982. Brakes don’t need to be replaced as often in electric cars.

6. Changes Around the Bend
Newer vehicles are now equipped with collision- avoidance systems, including cameras and sensors, which reduce the incidence of collision repairs. Conversely, when a collision does occur, the sensors are more expensive to replace.
As self-driving cars become more common, auto repair shops will require more skilled technicians to service them. Repair shops are already experiencing difficulty hiring qualified technicians, so this may be a significant future challenge.
Trust is key for vehicle repair and maintenance shops. Online reviews are gaining in importance and driving word-of-mouth traffic into auto repair shops, so there is a growing trend to boost shops’ online presence.

7. Advertising Strategies
Highlight your mechanics’ professionalism and honesty, using testimonials as social proof and show them serving female customers in print materials and TV spots.
Highlight the sophistication of your equipment and how you are able to diagnose and fix complicated problems quickly.
For body shops, list your insurance company relationships. Use the phrase “trusted by.”

8. New Media Strategies
Solicit positive customer reviews on your Website and review sites, such as Yelp, before customers leave the shop.
Use local search marketing to build your brand and communicate your services with potential customers in your area.
Sign up customers for regular maintenance with periodic, pre-scheduled maintenance appointments and notify them with and text reminders that include coupons.

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