The automotive industry is one of the biggest in the world. It’s currently valued at a staggering $5 trillion and is expected to reach almost $9 trillion by 2030. The demand for vehicles is growing even larger every day as more people are looking into buying one for their family or add one to their collection. One of the most essentials services in the industry and a growing sub-sector is the auto-repair industry.
The overall market size of the automotive repair and maintenance industry is valued at $516 billion and is expected to reach $810 billion by 2026, with a compound annual growth rate of 5.8%. If you’re part of this industry, consider yourself lucky because only a few industries in the world have this growth rate. However, being part of this industry isn’t enough if you want to be successful. Here are some ways you can bring success into your automotive repair shop.
The majority of your investments will be going into your equipment. So you’ll have to invest in the best quality equipment for your shops.
You’re going to need various tools such as air compressors, wrenches, and grinders. These are minor investments, and you can bring some tools you already have at home, considering they are reliable enough to use. However, one of the more considerable investments you’ll have to make is for a heavy-duty mobile car lift. As a mechanic, you’ll be spending much of your time under a vehicle. This goes the same for your employees as well. It’s dangerous to go under a vehicle without the necessary equipment. Having a car lift can also make your shop even more efficient. This is why a car lift is an important investment you’ll have to make alongside other types of equipment in your shop.
Make sure that you invest in the most reliable and durable equipment in the market. Because if you don’t, you’ll be spending most of your revenue replacing them. Do your research, find the best brands in the business, and get them even if you consider them expensive.
A Capable Human Resource Employee
If you own a local automotive repair shop, one that isn’t from a franchise, you know very well the reality of running an automotive repair shop. The reality of automotive repair shops is that if you have one, you’ll probably be running it alone or with just a handful of people. However, even if you can handle all the repairs yourself, you’re still going to need employees if you want your shop to grow. But this can be quite challenging.
The Bureau of Labor Statistics has stated a need for more than 46,000 auto-technicians and mechanics to fill the automotive repair industry until 2026. The problem is that no one wants this job. There has been a shortage of mechanics for quite some time now because as more college students graduate with a bachelor’s degree, the more they are less likely to get a blue-collar job. Blue-collar jobs are exhausting and demand a lot from your physical body, and this is why college graduates are avoiding becoming a mechanic.
Additionally, the median salary ($44,000) for mechanics is way below the average annual income of a working American (about $61,000). You need to be a top-earner if you want to reach this average salary bracket. So what is the solution for this? Quality over quantity.
You’re indeed going to need employees to grow your auto-repair business. But the truth is, you’re not going to need an army of them. Consider hiring a capable HR employee to look for talented mechanics all over your state. Hire only a couple of them, but pay them a salary higher than the median salary of mechanics. Tell your HR employee to give them access to training programs they need to develop their skills. This will ensure that they will stay in your company and grow as an individual.
Have Online Presence
Everyone is on the internet nowadays, and your best clients can be found there. This is why you should establish an online presence for your auto repair shop. Traditional auto-repair shop owners would say that it’s not a need. That your local customers and regulars can pay for the bills and then some.
This can be true, but it’s not going to grow your business. Having an online presence, even if it is small, will help you market your business for free. Who would say no to free marketing? To create a social media account for your shop, or maybe even a blog. All of these are enough to establish your presence on the internet and help your company grow.
Here are three simple ways you can run your auto repair shop to success. It can be challenging to do, but it’s feasible. In a couple of years, you will see your company grow in no time.