As of December 2020, ninety-one percent of independent automotive repair shops reported a decrease in revenue this year, according to a new report by IMR.
18.5% of shops report they have returned to ‘normal’ revenue levels while 1.3 per cent do not expect to financially recover.
In May 2020, shops had a more optimistic view on when revenue recovery would occur (May 2020 – IMR Insight). However, 10 months into the pandemic 17.4 per cent of shops expect it to take more than a year to recover which is up from May when only 2.5 per cent of shops expected it to take more than a year to recover.
During the peak pandemic lock-down months, independent automotive repair shops reported having a disruption in sourcing or purchasing parts. In May 2020, 25.8 per cent said they either ‘Very Frequently’ or ‘Frequently’ had a disruption. That has now decreased to 3.6 per cent and more shops are experiencing this issue ‘Occasionally’.
As of December 1, 2020, nearly 20 per cent of independent automotive repair shops report purchasing parts from suppliers that are new to them, down from 47.2 per cent in May. The purchase frequency is low with 58.6 per cent reporting they rarely purchase from these new suppliers.