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Grim outlook for garages which do not change to meet demands
publication date: May 29, 2010
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author/source: Robin Roberts
Motor repairers are facing declining demand despite cars in use rising by 13 percent in 10 years. The value of the retail car service and repair market has fallen by 21 percent since 1999 This is despite franchises raising their labour rate by 36 percent over the Retail Price Index, and independents rising by 15 percent. This, says the latest report by Trend Tracker, is to compensate for inflation and a fall in work coming in. The number of services and repairs carried out in the aftersales sector has fallen 17 percent, from 55.9 million to 46.6 million. Why? Well, whereas car owners paid for an average 2.04 transactions in 1999, this has now fallen to just 1.50. It means the outlook is grim for garages who are not prepared to look for new business opportunities, said Trend Tracker’s Chris Oakham. |
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