Are you thinking of owning an auto repair business? Moran Family of Brands is here to help you learn more about current automotive repair industry trends and what to expect in the coming year.
To understand the trends facing the automotive industry in 2023, it’s important to look at current events impacting the auto repair market. Following the pandemic outbreak, supply chain disruptions caused new car prices to rise and put purchasing a car out of reach for many Americans. As prices began to normalize, the outbreak of the war in Ukraine and scarcity concerns sent gas prices up. High gas prices and a focus on sustainability prompted people to explore alternatives. To meet customer demand, many car manufacturers debuted family-friendly electric vehicles.
The outlook for the automotive repair industry is strong. The auto mechanic industry is forecast to generate $80.5 billion in 2023, according to IBISWorld. Evolving technology and a rise in the number of electric vehicles on the road are reshaping the automotive repair industry. Auto repair shops need to stay agile and proactive by investing in the tools and talent required to provide quality service and keep pace with automotive repair industry trends.
2023 Trends
Moran Family of Brands has 33 years of experience as a franchisor in the aftermarket and window tinting industry. We franchise six brands, including Mr. Transmission, Milex Complete Auto Care, and Turbo Tint. As we ring in the new year, let’s look at the top five automotive repair industry trends in 2023.
- Smart cars. The rise in the number of software-defined vehicles is changing auto repair. Many vehicles are moving from hardware-based designs to computers on wheels. Customers expect their vehicles to offer driver-assistance features, such as backup cameras, blind-spot intervention, and automatic emergency braking. Having the latest infotainment system with touchscreen options, navigation, and diagnostics at their fingertips is a priority.
As cars become high-tech, mechanics will need to upgrade their skill set to continue to serve customers. Making repairs to software-defined vehicles requires mechanics with specialized training and staying abreast of the latest service bulletins. Moran’s technology department compiles the information into an online database franchise owners can access at their convenience to ensure they are informed.
- Sustainability. While politicians continue to debate the validity of global warming, younger generations are demanding strategies to help decrease their carbon footprint. In the automobile industry, focus on the environment is taking hold, and car manufacturers will continue to provide innovative solutions. Growing demand for electric vehicles is putting quick-lube and car maintenance shops on notice. Electric vehicles require less maintenance than traditional vehicles. Auto repair shops offering all-in-one services will thrive as people move to electric vehicles.
Focus on sustainability is also opening doors for the aftermarket auto industry, such as window tinting. Window tinting reduces solar and infrared radiation heat to keep vehicles cooler and reduce energy consumption. To cater to growing demand, Moran launched its Turbo Tint brand in 2020. Turbo Tint, which specializes in one-hour window tinting, has four locations up and running and more than 30 additional units in the pipeline.
- Financing. Despite the rising number of electric cars on the road, the high price tag of a new vehicle is making many people hold off on a new car purchase. The average age of cars on the road reached a record high of 12.2 years in 2022, according to S&P Global Mobility. As cars age, they will need significant repairs to pass inspections and continue running smoothly. Many of Moran’s franchisees offer financing programs to establish long-term relationships with customers. The automobile franchise also has an extensive warranty to ensure customer satisfaction.
- Elevated consumer experience. To set themselves apart from the competition, auto repair shops are ramping up their efforts to offer customers an enhanced experience. In addition to providing trustworthy service, auto repair shops are focusing on minimizing repair times and providing waiting room perks.
Moran implemented co-branding Mr. Transmission and Milex Complete Auto Care to provide customers with a one-stop shop for all of their car repair needs. The company’s Turbo Tint brand allows customers to pick their window tinting package online to ensure speedy installation. The brand's cozy fireplace, free Wi-Fi, and complimentary beverages add to its appeal.
- Hiring shortages. To combat continuing labor shortages in 2023, Moran helps its franchisees recruit talent from junior colleges and trade schools. The company also has an extensive veteran recruitment program. After spending four years in the military, veterans returning to civilian life often have the training and skills required to become reliable mechanics. Nearly 30% of our system are veterans, reports Pete Baldine, Moran’s president.
Drive Forward With Moran
Moran offers the keys to a new future for entrepreneurs who want to build a legacy business. For an initial investment of $118,219 to $296,767, you can take charge of your future in an evolving, in-demand industry. Americans spend nearly 11 hours in their car each week and rely on their vehicle for work, play, and chores. Investing in the aftermarket auto industry offers a recession-resistant opportunity.
Learn more about automotive repair industry trends and what it takes to open an auto repair shop with Moran. Request information and schedule time to talk with one of our franchise business consultants.