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

Education R&D
Will the New Education R&D Bill Spark the Innovation Schools Desperately Need?
April 25, 2025

In a rare show of bipartisan cooperation, Senators Michael Bennet (D-CO) and John Cornyn (R-TX) have introduced the New Essential Education Discoveries (NEED) Act, aimed at revolutionizing how the U.S. invests in education innovation. The bill proposes a new National Center for Advanced Development in Education—akin to DARPA but for schools—within the Institute for…

Read More
How Verizon Business Utilizes UGC for Sales Enablement
How Verizon Business Utilizes UGC for Sales Enablement
April 24, 2025

In this episode of UGC for B2B, host David Dabney welcomes Cesar Teran, Verizon’s Sales Enablement Lead for Channel, to explore how user-generated content (UGC) is transforming training and team engagement at Verizon Business. Cesar shares the journey of introducing UGC into Verizon’s training initiatives, emphasizing the importance of authenticity, collaboration, and celebrating contributions….

Read More
digital freight invoicing
ODeX Is Leading the Charge in Digital Freight Invoicing
April 24, 2025

Global shipping continues to grapple with fragmented billing processes, often delaying cargo movement. According to McKinsey, adopting an electronic bill of lading could save $6.5 billion in direct costs and enable $40 billion in global trade. As vessels carry goods for thousands of shippers per voyage, the administrative burden of managing and reconciling invoices…

Read More
Human Intelligence Movement
Just Thinking… about Reimagining Education for the AI Era with the Human Intelligence Movement
April 24, 2025

As artificial intelligence reshapes education, work, and daily life, educators are grappling with how to prepare students for a future where human skills—not just knowledge—will be paramount. In fact, a growing number of reports highlight that employers increasingly value collaboration, communication, and emotional intelligence over memorized content. Amid this transformation, the Human Intelligence Movement…

Read More