Vehicle garages and workshops are contending with a multitude of challenges this year, including rising costs and the impact of the cost-of-living crisis on repair trends.

Just under half (49%) of vehicle repairers will try to avoid passing on higher operating costs in their pricing structure

A survey by the Motor Ombudsman has shown that 90% of independent garages and franchise dealer workshops expect risin costs, taxes and energy bills to be the biggest operational challenge in 2023 – that’s up from the 64% of respondents who stated in the same study that paying more for utilities and higher costs had reduced overall business profitability last year.

Nearly two-thirds (63%) of businesses said revenues could be hit by motorists delaying essential vehicle repairs, whilst 59% believe paying more for replacement parts will be a hurdle in the coming year.

EVs couldalso  impact revenue and aftermarket opportunities in 2023 due to their fewer moving and serviceable parts; around a third of workshops (32%) stated that EVs would provide less scope for extra work.

But with battery electric vehicles making up a growing proportion of the car parc, nearly half of the businesses surveyed (44%) still plan to invest in staff training on EVs, whilst around a quarter (23%) explained that they would be looking to introduce or add charging points at their premises.

And just under half (49%) said they will try to avoid passing on higher operating costs in their pricing structure.

Staff recruitment will continue to be an issue over 2023; 43% stated that adding experienced technicians to their team would continue to be a challenge. However, this is a slight improvement on the 50% of businesses that said in the survey that they had struggled to recruit in 2022.

Bill Fennell, chief ombudsman and managing director of the Motor Ombudsman, said the research shows garages and workshops will have to contend with a multitude of challenges this year.

“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,” he affirmed.