Are you ready to jumpstart your career? If your battery is low and you’re searching for ways to recharge, the auto industry offers a bright future. The aftermarket automotive industry is evolving, and new technology is changing how automobiles are repaired. Learn more about this and other market trends revolutionizing the auto repair industry.
Future of Auto Repair
As automakers and suppliers focus on connected, autonomous, and electric vehicles, the aftermarket auto industry is responding. Auto repair shops are revving their engines and relying on new tools and training to meet customer demand. They’re responding to critical trends impacting the auto industry.
- Electric vehicle sales. While the high cost of electric vehicles slowed their saturation in the U.S. market, rising gas prices and the debut of family-friendly options are sending EV sales up. During the first quarter of 2023, 258,882 electric vehicles were sold in the U.S., up 44.9% from the same period last year, according to Cox Automotive. As the number of electric vehicles on the road rises, quick-lube shops are adding services to stay relevant, and many auto repair shops are starting to provide EV maintenance and repairs.
- Workshop digitization. Repair shops are using advanced diagnostic tools and software to retrieve detailed information about a vehicle's performance and quickly identify issues. Analyzing vehicle data helps diagnose problems accurately and efficiently.
- Employee retention. Digitized workshops and software-defined vehicles are changing the landscape of hiring for auto repair shops. The average car is now equipped with at least 30 microprocessors. Mechanics need high-tech training to get the job done. Auto repair shops are focused on recruiting top talent and offering apprenticeships and training to ensure mechanics can repair advanced vehicle technologies, such as adaptive cruise control and lane departure warnings.
- Proactive customer service. Providing solid customer service is important when a customer visits an auto repair shop. To drive repeat business, auto repair shops are using email, text, and direct mail to take a proactive approach to customer service. Rather than waiting for customers to reach out with questions, complaints, or requests for assistance, proactive customer service involves providing relevant information, support, or solutions to customers. It helps build customer loyalty, increases satisfaction, and reduces customer churn.
- Ridesharing. The rise of ridesharing has led to a shift in car ownership patterns, with some people opting not to own a car or downsizing to one vehicle per household. It might seem like that would mean fewer cars needing repairs, but auto repair shops are finding ways to adapt by offering fleet services and targeting ridesharing drivers. Ridesharing drivers typically put more miles on their vehicles compared with the average private car owner. As a result, their vehicles are more prone to wear and tear, requiring regular maintenance and repairs.
Frontrunners in Auto Repair
Competing with dealer services can be a challenge for independent auto repair shops. Many mom-and-pop shops are converting their businesses to franchises to cope with the evolving industry. Having the support of an automotive franchise helps auto repair shop owners stay abreast of current consumer trends and industry developments. They often have relationships with vendors and marketing support.
Moran Family of Brands is the franchisor of six brands in the aftermarket automotive and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. The family-owned company focuses on helping its franchisees succeed by creating a legacy for their children and making a difference in their local community. In 2022, the top quartile of Milex Complete Auto Care and Mr. Transmission locations generated an average unit volume (AUV) of $1.47 million*. Our entire system had an AUV of $854,976.
We give our franchisees the tools and training they need to operate an auto repair business for the long haul. All our owners attend two weeks of online pretraining and one week of in-person training at our corporate headquarters. We also require all our franchise owners to spend at least one week of training at an existing location.
Let’s explore how our franchise family navigates the evolving auto industry.
One-Stop Shop
Quick-service lube shops are stepping up their game by adding services to stay relevant in the auto repair industry. Moran is ahead of the curve. We started offering co-branding to enable our franchise owners to be one-stop shops for all their customers' car care needs. Co-branding generates higher average ticket prices and helps boost repeat business. Having two franchises under one roof provides economies of scale with a lower franchise fee and enables owners to advertise to 100% of the market.
Fleet Services
Auto repair shops can gain market share by targeting fleet services. Having reliable, recurring revenue from fleet accounts helps fuel profits and provides a steady income during challenging market conditions. Our national and local fleet customers receive priority status, reducing vehicle and work downtime. And our state-of-the-art equipment equates to faster and more accurate diagnoses. We offer direct pay or central billing to lower administrative costs and a toll-free, dedicated fleet department to improve service.
EV Maintenance
Our shops provide EV maintenance to boost our market share. Electric vehicles share many of the components of cars with traditional combustion engines. The undercarriage components, such as steering and suspension parts, axles, brakes, and tires, are all the same. Electric vehicle maintenance requires special safety training.
Online Services
Moran’s brands meet customers where they spend their time. Our Turbo Tint brand allows customers to shop for a window tint package and book an appointment on its website. When they arrive at a location for an appointment, all they need to do is pick a window tint shade, and it’s installed in one hour or less.
To learn more about opening a franchise in the auto repair industry, schedule a time to talk with an expert from Moran’s franchise team.
*This is a historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD.