Biggest Challenges to Running an Automotive Business main image

Biggest Challenges to Running an Automotive Business

In 2020, when we first asked about the biggest challenges Members faced in running their businesses, 36% said it was finding good staff.

Back then, it was third from the top of the list, behind having a good work-life balance and managing to take a holiday. Last year, the figure was 39%. This year, it has leapt to 51% - and it now tops the list.

The biggest increases were all in areas directly related to the skills shortage:

Many Members said the skills shortage was adversely affecting their work-life balance and their ability to take a holiday. While the data is similar to previous years, these are consistently the top three challenges.

What's the good news?

No matter the size of the business, on average Members are reasonably comfortable that:

  • The impact of the parts shortage is easing, with this cited as a challenge for 24% of Members this year, down from 31% in 2022.
  • The lingering effects of COVID are almost out of the system, with this cited as a challenge for 6% of Members this year, compared to 18% last year.

When it comes to finding and retaining good staff, the larger the workshop the greater the scale of the challenge. The same is true when it comes to finding good apprentices.

What's the good news?

No matter the size of the business, on average Members are reasonably comfortable with:

  • Marketing and promoting their business.
  • Finding new customers.
  • Keeping up with digital technology.

The type of workshop Members operate can have a huge impact on the kinds of challenges they face in their business.

What's the good news?

  • The impact of the parts shortage as a challenge has dropped by 11 percentage points for mobile mechanics, nine for auto-electrical and seven for mechanical workshops.
  • Across all business types, financial concerns ranked low as a business challenge.