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The automotive aftermarket is at a crossroads as it faces unprecedented obstacles heading into 2025. Rising operational costs, shifting legislation, and recruitment challenges are creating a storm of uncertainty for garage owners, HR professionals, and businesses across the sector. Many are grappling with how to maintain profitability, meet demand, and sustain performance in this rapidly changing landscape.
At Autotech Group, we believe the solution lies in a forward-thinking approach - embracing quality people, skills, and technology to address these challenges head-on. The task ahead is not without its hurdles, but we are optimistic about the resilience and adaptability of this sector, provided decisive actions are taken. "The challenges ahead demand innovation and adaptation. Businesses that adopt bold strategies will emerge stronger," says James Mackay, Autotech Recruit's Sales Director.
How Rising Costs in 2025 Are Impacting Automotive Businesses
One of the most immediate pressures for many businesses is the rise in operational costs, including the effects of tax increases announced in the Autumn Budget. From April, National Insurance contributions are set to rise from 13.8% to 15.0%, compounded by a reduced contribution threshold from £9,100 to £5,000. For an average vehicle technician with on-target earnings (OTE) of £40,000, the increased costs could add significantly to a business’s payroll expenses.
Energy costs and other overheads are also mounting, straining already tight budgets. A recent The Motor Ombudsman survey revealed that 89% of service and repair businesses anticipate rising costs to be their top challenge this year. For small and mid-sized businesses, this leaves little wiggle room for investment in critical areas like staffing, training, and new equipment—key factors for maintaining growth and sustainability.
Tackling the Automotive Skills Shortage – Recruitment Issues Garages Face
The skills shortage remains a pressing issue. According to the Motor Ombudsman survey, 58% of businesses report difficulty recruiting qualified technicians to meet growing workload demands. These automotive recruitment challenges are compounded by new legislative shifts, such as the Employment Rights Bill, which introduces “day-one” rights to unfair dismissal claims. While these reforms enhance protections for employees, they are causing many businesses to reevaluate their hiring strategies.
Prolonged recruitment timelines exacerbate the issue. It currently takes an average of 44 days to fill a position, leaving workshops with empty ramps - a costly problem that can result in up to £1,000 in daily revenue losses for independent garages. These delays don’t just affect finances; they impact customer trust, damage reputations, and push long-term customers toward competitors.
"It’s clear that the recruitment landscape is shifting under our feet. Businesses must rethink their strategies to avoid falling behind," emphasises James Mackay. “For businesses across the aftermarket, this growing recruitment gap is not something that can be ignored. It needs proactive, strategic solutions to future-proof operations.”
Building a Robust Workforce Strategy with Temporary Staffing Solutions
We’ve seen firsthand how a carefully crafted workforce strategy can help businesses overcome technician shortages while streamlining operations. This doesn’t mean abandoning the pursuit of permanent staff—in fact, achieving long-term alignment between employees and company culture remains the goal. However, addressing immediate gaps with temporary staffing solutions can provide much-needed flexibility without the risks and obligations tied to permanent hires.
Temporary staffing allows businesses to:
- Cover skill shortages during peak demand.
- Avoid costly downtime from unfilled roles.
- Maintain customer satisfaction through uninterrupted service.
“Temporary solutions aren’t just a stopgap - they’re a strategic investment. For garages losing up to £30,000 a month due to empty ramps, hiring temporary technicians is a fraction of the cost of lost revenue. Integrating temporary solutions into your annual workforce strategy ensures scalability and minimises disruption,” says Mackay.
Leveraging Training and Technology to Improve Productivity
While temporary staffing offers flexibility, it must be complemented by robust training and technology investments. Equipping your current workforce with up-to-date skills and adopting tools to streamline processes are key to both short- and long-term success.
What Are the Benefits of Training?
Investing in regular training and upskilling benefits not only employee productivity but also retention and satisfaction—essentials in an industry grappling with talent shortages. A well-trained team doesn’t just perform better; they’re more engaged and less likely to seek opportunities elsewhere.
What Are the Benefits of New Technology?
Advanced tools and technology are critical to optimising workflows and maintaining operational efficiency. From diagnostic equipment to AR headsets, the right investments can reduce bottlenecks, support skills gaps, and keep your operations running smoothly. Together, training and technology form the backbone of a resilient business strategy.
Resilience Through Adaptation
Despite the considerable challenges facing the automotive aftermarket in 2025, they also present opportunities for innovation and growth. At Autotech Group, we remain committed to helping businesses thrive in this rapidly changing landscape. Our vision is clear: a world where there is no shortage of the skills needed to keep vehicles running, ensuring everyone can travel freely, flexibly, and more sustainably.
By revisiting workforce strategies, leveraging temporary staffing solutions, and investing in training and technology, businesses can confidently adapt to market demands. These practical approaches not only mitigate immediate risks but also lay a solid foundation for future success.
A Call to Action
"The future of the automotive aftermarket lies in its ability to evolve. With the right approach, the opportunities ahead are limitless. Now is the time for bold action and the strategies implemented today will dictate your success tomorrow,” concludes James Mackay. With a focus on people, skills, and technology, we can ensure that the automotive aftermarket not only navigates these challenges but emerges stronger and more adaptable than ever.
We can support your business in standing up against the challenges of the automotive aftermarket in 2025, and beyond. Utilise our temporary and permanent staffing solutions to find the right talent for your workshop – or explore Autotech Academy, which is the conduit between fresh automotive talent and your business.
Autotech Training is here to keep your team up to date with new skills, and Autotech Connect can provide you with the technology needed to improve productivity and operational efficiency.
Contact us today to see how we can support you in navigating your challenges in 2025.