2. Mechanics Dynamics
According to First Research, the number of establishments in the retail auto repair industry (oil change shops excluded) hasn’t changed from 2015, totaling 160,000; however, total revenues increased 11.1% from $90 billion to $100 billion.
IBISWorld estimates the “auto mechanic” industry totals more than 250,000 businesses, generating $58 billion in total revenues. This description excludes dealerships, parts stores and gas stations that provide service as well as body shops and oil change centers.
Approximately 80% of all auto repair shops are small, independent operations, although some are franchisees of national systems. National chains, such as Sears, Kmart, Goodyear and others, represent only 10% of total industry revenues.

3. Shaped by Vehicle Sales
The record number of new cars sold during 2015 (17.47 million) and an estimate of another million for 2016–2018 will be covered by warranties, and serviced at dealerships, which is why auto repair shops will experience years of low growth through 2020.
The good news for independent auto repair shops is that the average age of vehicles on the road during 2015 was 11.5 years. Combine this statistic with improving employment and wages and many people will be in need of repairs, and can afford them.
In addition, there were 38.3 million used vehicles sold during 2015 and approximately 5.5 million leased vehicles will be returned through 2018, providing auto repair shops with even more opportunities, as these vehicles require their first major repairs.

4. Body Work Warriors
According to survey data from BodyShop Business, 61% of body shop owners thought their businesses were on a better footing during 2015 than the previous 5 years and 74% think their businesses will be more successful during the next 5 years.
Much of that optimism is reflected in an average of 28 jobs performed per week during 2015, compared to just 13 during Those 28 jobs represented 85% of estimates and an average ticket of $2,300.
Body shop owners also said they spent an average of $24,847 dollars annually for advertising and promotions, with word-of-mouth generating 34% of their business, followed by direct repair programs (DRPs) at 34% and advertising at 11%.

5. Viscosity Prosperity
National Oil & Lube News’ 2016 TOPS in the Industry survey reported that the top chains will generate approximately $16.2 billion in revenues during The magazine also reported that the average customer changes his or her vehicle’s oil every 4,858 miles.
Jiffy Lube remains #1 among fast lube chains with 1,928 locations; Valvoline Instant Oil Change was #2 with 960 locations. North Florida Lubes is the largest associated chain, operating 66 Havoline xpress locations.
Oil change-plus shops are those that offer other services, such as a carwash and general repairs. Goodyear Tire & Service Network Outlets remained #1 in this category, with 2,594 locations; Wal-Mart Auto Care Centers was second.

6. Adjusting to Tech Advancements
Auto repair shops are facing two major challenges: new vehicles are being designed and manufactured for longer maintenance intervals, which attracts car buyers, and new vehicles’ systems are more complex.
An even greater and longer-term challenge is the continuing automation of vehicle operations, including autonomous driving. In its June 2015 study, KPMG estimated that accident frequency could decline 80% by 2040.
Autobraking is expected to be a standard feature on the models of 20 automakers that represent 99% of the US market by September This capability is estimated to reduce rear-end crashes by 39%.

7. Advertising Strategies
Independent shops can create a brand niche for themselves by adjusting their shop culture and highlighting eco-friendly efforts to appeal to female customers who make 80% of families’ purchase decisions. Staff training should emphasize patience and careful listening.
Consider targeting Millennials with spots in early morning news and promoting a coupon for a free coffee at a nearby coffee shop or a discounted Uber ride from the shop to the workplace and a return trip at the end of the day.
For small independent shops that don’t have the budget for regular TV advertising, recommend ads on the station’s Website with links to social media pages and/or online coupons.

8. New Media Strategies
Use a blog with posts written by the repair staff with tips and hints on preventative maintenance and how to maximize the reliability and longevity of vehicles. This will build trust and a stronger connection between the staff and customers.
Ask a few customers every week to appear in videos of the story of their repair: explaining the symptoms of their car problem, their interaction with the mechanic, the mechanic’s steps to make the repair and the customer’s satisfaction with the work.
Invite customers and social media visitors to share photos and videos of their relationship with their vehicles, especially if they’ve given them a name: The origin of the name, how they pamper their vehicles, unique or custom interior decorations/touches, etc.