Planning for the uncertainty ahead in CARS magazine
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The latest issue of CARS magazine is here and it features the annual Executive Outlook, featuring 10 leading experts in the mechanical repair sector sharing their thoughts on how the industry can navigate the uncertain time ahead.
Complex challenges and constant manoeuvring — that’s what the following year has in store for automotive aftermarket service shops in Canada, according to leading experts in the mechanical repair sector.
The landscape for the year ahead looks to be shaped by economic fluctuations, technological advancements and evolving consumer behaviours. Industry leaders are preparing for a year marked by both challenges and opportunities, with a focus on maintaining resilience and driving growth.
Economic conditions remain a significant concern. Although inflation in Canada has eased since its peak in 2022, expectations have stayed high, leading to cautious spending throughout 2024. High interest rates have further influenced consumer behaviour, prompting many to prioritize maintaining and repairing their existing vehicles over purchasing new or even used ones.
Indeed, it’s becoming prohibitively troublesome to replace your vehicle these days. Costs remain high on the new side and supply in the used market is … well, let’s have Daniel Ross from Canadian Black Book describe it.
“The used supply is, I’d say, a horror story,” he said during the Talk Auto Conference in the late fall of 2024. “We started with a poor sales outlook the last four years. We’re looking at poor used supply the next four years.”
But it’s not like customers may be running over to repair shops.
“We’re seeing maintenance deferral, especially among lower-income households,” said Nathan Shipley, executive director and industry analyst with Circana’s automotive aftermarket practice. “Oil changes, AC system recharges, wiper blades, and tires are among the items consumers are delaying.”
And even when they do come, don’t expect them to be looking for top-shelf items. Shipley further noted a trend of “buying down,” which means a customer who may have bought a premium or mid-grade product line is looking for a downgrade to better fit their budget.
“We know that with lower-income households especially, there’s maintenance deferral that goes on during economic times like we’re in. We’ve seen it in the past, and we’re seeing it now,” Shipley said.
Political uncertainty adds another layer of complexity. As of the time of writing, trade tariffs placed by the United States on Canadian and Mexican products had been delayed but were still very much on the table. Such tariffs are expected to raise the cost of parts and repairs, putting additional strain on consumer budgets.
Technological advancements are rapidly transforming the industry. The rise of electric vehicles and the increasing complexity of modern vehicles require ongoing investment in advanced diagnostic tools and training.
How do shop owners keep pace? Collaboration amongst your peers and operational excellence were key strategies noted by leaders for 2025. They emphasize the importance of cooperation among repair shops and suppliers to share insights and best practices. This would help foster resilience and innovation, enabling businesses to navigate economic pressures more effectively.
We asked 10 industry leaders three questions: How will the economy impact customer behaviour in 2025 compared to 2024? What role is technology playing in repair shops these days and how can shops use it effectively? And what could impact business the most this year — is there one key opportunity or challenge awaiting shop owners?
In alphabetical order, we will share their insights over the coming weeks.
You can also view the digital edition and read their full thoughts now.
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