Trend Tracker reveals a brand-new series of quarterly detailed industry reports, the first of which entitled ‘Emerging from COVID-19’ which is now out and available here https://www.trendtracker.co.uk/reports-data/ offering an option to purchase the report or start a monthly subscription to access this report and all future reports. The report contains extensive desktop research as well as contributions from its data and insight partners (Consumer Intelligence, Thatcham Research, the SMMT and Solera Audatex)
One of the critical areas of concern across the industry is the repair volume set against 2019 as a baseline. Trend Tracker monitors this through the unique data from their Data and Insight Partner Audatex and looks to predict the rest of the year.
Both April and May were 72% and 73% respectively vs. 2019, which will be a cause of concern for many in the industry. The ‘Emerging from COVID-19’ report highlights many impacts of COVID-19 which continue to change the market and the impact this is having on businesses.
It includes the results of a UK-wide survey encompassing more than 200 repair centres from right across the UK, the report chronicles the impact on capacity, revenue, people, and borrowings with only a third of the respondents not needing to increase their borrowings, leaving many needing the return of regular volumes of work from a year which has, so far, removed over three quarters of a million repairs.
Crucially, Emerging from COVID analyses this data, along with significant supporting research to consider what the future will hold.
HNW CLIENTS & WOKE FLEETS ARE THE FUTURE
The car repair sector took a big hit during the lockdowns, and continues to do so, as people give up on commuting and so reduce their mileage overall. Most of the traffic jams in the UK now occur on hot sunny days, or weekends, when everyone decides to drive somewhere nice, or visit family/friends. You will soon see this reflected in accident stats, it just takes months for the public sector to catch up on reality.
As secondhand car values rise, there will be more write-offs and fewer repairs when the inevitable happens. Why would an insurer bother fixing up a mildly shunted 2015 Astra or Ford Focus 1.6 when it’s less hassle to forget it and make a low offer to the customer? Plus you then own a selection of decent parts like the engine/transmission, electrics, brakes etc which can go some way to cancelling out that loss? It’s just business sense at the end of the day.
Then there are modern cars stacked with ADAS systems, cameras and tech – again, can be cheaper to write them off. Can be more convenient for the customer who just gets another lease car, maybe even a slight upgrade.
Let’s talk China for a minute, because it may well be the case that recycling nearly new vehicles for spares could resolve UK car industry spare parts shortages; ECU chips, sensors, alternators, catalysers, clutches – the list is endless. Just like the container waiting times.
We are now entering an era of wokeness, where driving for non-work purposes will be seen as some sort of climate crime. There are tough times ahead for anyone who doesn’t subscribe to the hypocrisy where Bill Gates can own six classic Porsches, but Joe Public has to use a bicycle to get to the Post Office. Car bodyshops that want to survive will have to target HNW clients, plus public sector fleet repair work, where hybrids and EVs MUST be repaired because well…public sector innit? Got to go green n all that. This will be the only way to ensure your business will stick around long term.