IMR: Tool costs, technology top threats for repair shops

WESTMONT, Ill. — The costs of tools and equipment, along with the advanced technology found in new vehicles, are considered the greatest threats to general repair shops, according to an IMR Inc. survey of auto service businesses.

In June, the automotive research firm said it surveyed general automotive repair shops about current and future threats to their business. Of the six current/future threats asked about, the cost of tools and equipment required to service late model vehicles and advanced technology on newer vehicles nearly tied for the highest threats.

However, as the size of the shop increases, the threat of the cost of tools/equipment decreases, according to survey results.

For shops with more than six bays, advanced technology on newer vehicles is actually the number one threat, according to the survey.

The third-place overall threat was new car dealership competition followed by a tie between equal access to vehicle telematics data from OEMs and finding qualified technicians. The fifth greatest threat, according to survey respondents is new B2C online vehicle service models.

For shops with four to six bays and those with seven to 10 bays, equal access to telematics data was more of a concern than finding qualified technicians, according to IMR.

More than half of smaller shops, those with one to three bays, considered access to telematics data the least threatening. Competition from new car dealerships and finding qualified technicians tied as the third greatest threats for them.

"We also asked the shops if there were other threats to their business that we didn't mention. The most frequently cited responses were the high cost/price of parts, cheap foreign parts and low quality parts," IMR said.

The report can be found on IMR's website, automotiveresearch.com.