The vehicle repair sector is bracing for a “perfect storm” of challenges in 2025, as rising costs, customer cutbacks, and recruitment struggles collide to create a turbulent trading environment.
The Motor Ombudsman’s latest annual survey of independent garages and franchise dealer workshops paints a sobering picture for businesses navigating these pressures.
For nearly nine in ten repairers (89%), escalating operational costs – from taxes to utility bills – emerge as the year’s greatest challenge. This marks a significant increase from 75% in 2024, and are set to worsen the financial strain on garages. Compounding the issue is the energy price cap hike that took effect on 1 January, raising overheads further.
Adding to the storm clouds, over half of repairers (52%) predict increased costs for vehicle parts, driven by inflation and ongoing component shortages. Despite these pressures, 42% of businesses are determined not to pass the full burden onto consumers, mindful of their own financial hardships.
With household budgets stretched, more than half of garages (56%) expect motorists to delay essential repairs in 2025 to save money, while 48% foresee a drop in ad hoc and routine maintenance bookings. These cost-saving measures by consumers risk reducing garage footfall and creating long-term issues for vehicle safety and performance.
Adding to the turbulence is the industry’s struggle to attract and retain skilled technicians with the lack of available talent risking leaving businesses short-handed at a critical time. Nearly half (48%) of garages flagged recruitment as a significant hurdle, with 55% having raised wages in 2024 to combat the shortage.
The increasing adoption of electric vehicles (EVs) presents both opportunities and challenges. With fewer moving parts and reduced maintenance needs compared to petrol and diesel models, EVs offer limited revenue potential for garages. Just 21% of respondents see EVs as a significant source of income in 2025, down from 26% last year and 32% in 2023, reflecting shifting market dynamics.
Despite the daunting outlook, many garages are charting a course for resilience. Among the survey’s brighter findings:
- 42% of respondents plan to refurbish their premises, investing in infrastructure to enhance customer service.
- 39% aim to expand their workforce, despite recruitment challenges.
- 29% are exploring adjusted opening hours to improve staff work-life balance.
- 24% intend to diversify their supply chains to mitigate repair delays caused by parts shortages.
Bill Fennell, chief ombudsman and managing director of The Motor Ombudsman, acknowledged the stormy forecast but highlighted the sector’s resilience: “Our survey reveals a perfect storm of rising costs, reduced consumer spending, and recruitment difficulties, creating significant headwinds for garages in 2025. However, amidst these challenges, businesses remain committed to investing in their operations and providing exceptional service.”
Fennell added: “As garages navigate these turbulent conditions, The Motor Ombudsman will continue to support accredited businesses, championing their dedication to the high standards outlined in our Motor Industry Code of Practice.”
