Coronavirus causes 60% of garages to close
Published: 16 April, 2020
More than 60% of garages in the UK could have shut their doors since the COVID-19 lockdown began, a survey suggests.
Key closure causes cited in the survey, conducted by sector PR and marketing agency Impression Communications, were the significant drop in business caused by social distancing measures, and the decision to extend the MOT from 30 March by six months. Other respondents noted practical reasons such as childcare and the inability to source parts as motor factors had also closed.
The survey also found that around 25% of motor factors may be shut, and those that remain open are running 50% and below capacity. Those who closed cited public pressure as a key cause. On the supplier front, 67% of those surveyed said they were open, 25% were partially open, and 8% had shut.
On their awareness of business support measures, 88% of garages in the survey had heard of the Coronavirus Job Retention Scheme, through which staff can be furloughed on 80% of their salary up to £2,500 per month.
When asked about the kind of online training they would want to pursue when at home or on furlough, 73% of garages said EV and hybrid training.
Demand for product had reduced dramatically, in some cases by up to 85%. Business support, product and sales training were key for suppliers during this time, the survey revealed.
Commenting on the findings, Impression Communications Director Mark Field said: “It’s clear that the MOT extension has had severe repercussions throughout the supply chain. Close communication is key as the market is changing on an almost daily basis with businesses reopening and garages receiving much needed support in the way of grants.”
- IGA wins COVID-19 Member Support Award
The IGA has won the Crisis Management – Covid Member Support award at the Trade Association Forum Best Practice Awards 2022, for their work to help the UK independent garage sector during the COVID-19 pandemic.
- Staff shortages biggest challenge for garages study finds
COVID-19 and the ongoing skills shortage has caused a cascade of problems for garages during 2021, a new survey has shown. Being able to hire enough mechanics and MOT testers was the biggest worry for 67% of garages, a situation compounded by ongoing Coronavirus-related absences, the research from The Motor Ombudsman found.
- 39,000 mechanics now EV-qualified, but skills shortage remains warns IMI
39,000 UK mechanics were EV-qualified by the end of 2022, according to new figures from the IMI, up 14,800 on the previous year, but the uptake of the relevant skills needs to be accelerated to avoid a potential 16,000 technician shortfall by 2032, the organisation has warned.
- MP opens new RMI Academy of Automotive Skills Lincoln site
The fourth RMI Academy of Automotive Skills training site in Lincoln was officially opened today (Monday 27 September) by local MP Karl McCartney.
This new facility is part of the RMI’s aim of addressing the skills shortage in the automotive industry by providing affordable training for garages on a more local basis.
Stuart James, RMI Director commented: “As the 2030 ban on the sale of new petrol and diesel cars approaches, the lack of technicians skilled in hybrid and electric vehicle repair is one of the biggest threats to this plan. We would like to thank Mr McCartney for supporting our efforts in this step forward to provide the skills needed for technicians in the local community to repair the growing number of hybrid and electric vehicles on our roads.”
MP for Lincoln Karl McCartney added: “I am absolutely delighted to see a new training centre for automotive technicians opening within my constituency, offering as it does a wonderful opportunity for young people in our community to learn skills that will support them for the rest of their lives. But by partnering a fantastic long-standing local firm with a dedicated expert professional body, to focus on Hybrid and EV vehicle training, this particular centre also puts Lincoln at the cutting edge of technology.This will offer a double-whammy of opportunity for trainees and the sector as a whole, at a time when only around 5% of technicians in the UK are currently qualified to work on these vehicles.”
The new training site joins established facilities in Runcorn, Winchester and Southam, where a range of MOT and technical training courses are available.
For more information visit RMItrainingAcademy.co.uk
- Shifting demands, shifting gears
Garages that thought they would be veering away from MOTs in favour of essential repairs during the Coronavirus lockdown are still doing MOT tests at roughly the same rate, it has been suggested.
While DVSA figures showed a 78% drop in MOT performed between 30 March and 24 April, marketing agency Digital Incubator says the independent garages it works with that remained open during the lockdown have not seen such a steep drop.
“We have a lot of garage clients that have switched from MOT campaigns to clutch and gearbox work,” explained Jamie Stoulger, Sales Director and Operations Manager at Digital Incubator. “However, our clients are still generating a steady flow of MOT enquires.”
Campaigns
The marketing agency works with garages across the UK, and currently has over 1,200 motor trade campaigns ongoing. 80% of customers are in the independent sphere.
Jamie continued: “Regardless of the MOT not being relevant, people are still getting their cars picked up. A lot of our clients run a collect and delivery service. We are running that via the ad campaigns and on the website.”
There has been an impact, Jamie confirmed, but a mild one at best, and work overall continues: “MOTs have slowed down slightly, that just what it is, but regardless of us being in the middle of this pandemic, if someone still has to go into work and their car breaks down, they still need to get it repaired. They are not going to just leave it on the side of the road and deal with it six months later. You need it done. As a result, our clients are still generating leads.”
Performance
We asked Jamie he thought this has taken many of their garage clients by surprise. “I wouldn’t say so,” he replied. “There are a lot of franchised dealerships and service centres that have just closed their doors without even thinking about it. They just went ‘we can get funding, let’s just put everyone on furlough’. The garage businesses that decided to pummel through this, they are still performing. There might be a small dip in some cases, but across the board, our averages have not really dropped. I don’t want to make a bold statement and say it isn’t affecting anyone – it is – but they are on average not far behind where they usually are. It has hit them, but we are not talking about 50%. The drops in business are probably around 10% to 15%.”
Situation
On what has been in many cases blanket closure by across much of the franchised network, Jamie observed: “I worry about the outlets that are closing their doors without making the slightest attempt at generating business. It’s still out there. People forget that. Across the board, if you think about it logically, there might only be 50% of the business available, but if 80% of the outlets are closing down, the garages staying open will benefit. I think a lot of businesses are going to come back to a very big decline in their own customer base. Their customers have had chance to test another garage out. If they had a better service, I know where they will go the second time around.
“I think some businesses have taken things a little too far. There are things you can put in place, like contactless pick-up and delivery. Dealerships could have put in place what the independents have done to keep their workers safe and the customers safe. If you can, do everything contactless. A lot of companies are going to go bust because of this. The best bet is to do things safely, ensure it is all contactless, but keep the doors open. The business is out there, they just need to be a bit more open about how to get it.”
