Car Repair Shops Are Thriving During Chip Shortage

 

Key Points:

  • According to a Statista report, global sales of automobiles are projected to fall under 70 million units in 2021.
  • The chip shortage has increased the value of used cars, which has led to an increase in vehicle repairs as car owners invest in their automotive asset.
  • Even if production were to increase or the shortage were to be resolved, it will take at least one “cycle” to normalize, which still benefits car repair shops.

Commentary:

The chip shortage is a supply chain challenge that continues to rock the automotive industry, with no clear end in sight. Car dealerships across the country are struggling to fill their lots due to lack of inventory. This, in turn, has caused the value of used cars to boom. For Joe Hyde, Director of Automotive Technology at Christian Brothers Automotive, a vehicle repair company, that increase in value has made their services even more important. MarketScale spoke with Hyde on the impact of a thriving market for vehicle repair shops, and how the used car market will continue to shape their industry’s trajectory.

Abridged Thoughts:

How does that affect us on the repair side? Well used vehicles, of course, are more likely to go to an independent repair facility for repair rather than back to a selling dealer, because typically there’s no warranty unless they purchase an aftermarket warranty, which in those cases and aftermarket warranty can be serviced anywhere the consumer decides.

And so what we’re seeing is we are seeing an increase in vehicle repairs at all of our locations. And I think from a market standpoint, because people can’t go out and choose the vehicle that they want, they are choosing to take care of the vehicle that they currently own a little better. They’re doing more maintenance, they’re holding on to it longer. And so that is actually provided our industry with a significant increase in repairability. Throughout this whole shortage, we have only heard the negative effects for those in the automotive industry.

More Stories Like This:

What Could Happen to the Auto Industry If the Chip Shortage Were to Get Worse?

Is the Automotive Industry Facing a Simlilar Crisis to 2008?

Follow us on social media for the latest updates in B2B!

Image

Latest

Goldey-Beacom College
Workforce Success and Innovation-Driven Growth with President Keith of Goldey-Beacom College
September 3, 2025

As higher education institutions face declining enrollments and increasing pressure from employers for skills-based learning, small colleges are rethinking their missions. A whopping 70% of U.S. employers say they struggle to find workers with the right skills, and credential-based programs are gaining traction as a solution. At the intersection of tradition and transformation, Goldey-Beacom College…

Read More
healthcare workforce development
Transforming Healthcare Workforce Development: Sustainable Solutions Through Early Engagement, Access, and Leadership
September 3, 2025

Healthcare systems continue to face intense workforce challenges, with nursing at the center of concern. According to the U.S. Bureau of Labor Statistics, employment of registered nurses is expected to grow 5% between 2024 and 2034—faster than the average growth across all jobs in the U.S. economy. While this growth reflects rising demand for…

Read More
consumer brands
Consumer Brand Growth Formula: Value Proposition, Platform Strategy, and Wellness Integration
September 3, 2025

Building consumer brands today requires more than clever marketing; it demands brand trust. Consumers want proof that products work, delivered at prices that feel accessible. That shift has raised the bar for founders, especially as 86% of consumers say authenticity influences which brands they support—with Gen Z placing even greater emphasis on it. Credibility…

Read More
career
The Key to Career Equity? Boundaries, Balance, and Knowing Your Strengths
September 2, 2025

Career paths aren’t always linear. Many professionals find themselves navigating shifts between industries and roles, discovering that success often comes down to setting boundaries, balancing responsibilities, and leaning on core strengths. So, what does it look like to build professional equity not by chasing titles, but by leaning into what you do best? How…

Read More