Auto Repair Shops’ Growth Slows

Wintry weather across the United States may be increasing business for some independent auto repair shops. These shops saw slow growth during 2013 but auto sales were up.

Auto repair shops registered just a 1.7 percent growth last year making the industry one of the slowest growing industries. It is the slowest growth the auto repair industry has seen since 2009. In general, when car sales are up, repairs are down. Auto sales increased by almost 8 percent in 2013. Although there was slower growth for auto repair shops, their net profit margin rose. This figure has been showing steady improvement since 2009. The rise in profit margin is attributed to a decrease in operating expenses.

Sageworks Data collects this information, tracking the sales trends for privately owned auto repair shops vs. automotive dealerships.

 

 

Posted on February 13, 2014 at 10:00 AM