Uncover the Hidden Crisis in the Auto Technician Field
Impact on Municipal Services
A nationwide shortage of auto technicians is directly affecting our region. As a result, there is a need for increased in-house municipal services to ensure the smooth operation of fleets. Local governments like Sussex County, Passaic County, and Orange County are facing the challenge of keeping their vehicles, including snow removal equipment and transit buses, in good working order while keeping costs down for taxpayers. In Newton, for example, they recently hired an in-house mechanic to address this issue.
The shortage also means longer wait times and fewer available appointments at local automotive shops. This is a frustrating situation for private consumers who rely on these services. M.L., a 20-year veteran mechanic, summed it up well: "We're feeling the shortage, too. If we have a shop with 10 bays and only 7 people, that decreases the amount of daily work to 70 hours. And that's just appointments, it doesn't account for people with emergent issues."
Rapidly Evolving Technology
Touchscreens, lane sensors, backup cameras, and other automotive safety features are amazing technological advancements. But fixing these features requires more than just mechanical knowledge. Technicians now need to understand complex computer and electrical systems.
As early as the 1980s, experts were studying the effect of evolving technology on automotive technicians. A 2024 survey by the Autocare® Association showed that more than 50 percent of independent repair shops had to turn away business because they couldn't access the vehicle's computer to diagnose and repair the problem. This leads to customers being referred to dealerships, which are also overburdened due to the shortage of trained technicians.
Inadequate Wages and Lack of Advancement
Another factor contributing to the shortage is that wages and advancement opportunities for auto technicians are not very attractive. Entry-level mechanics earn, on average, $10,000 to $20,000 less per year than entry-level electricians or HVAC technicians. In New Jersey, the average salary for a mechanic is just over $55,000, which is not enough to live on in one of the most expensive states.
The structure of the auto repair business also means a lack of advancement opportunities. Many mechanics dream of owning an independent shop, but the start-up costs are tremendous. Automotive software leader AutoLeap indicates that the average cost to establish an independent automotive shop is $100,000 and does not include ongoing overhead. As a result, most mechanics remain in the employ of others and job-hop in search of better opportunities and higher pay.
Shift in Educational Interest
Auto repair is often seen as a low-level skill, despite its importance. Combined with low wages and a lack of advancement opportunities, fewer young people are choosing to enter the automotive trade. However, locally, there seems to be a shift. At Sussex County Community College, there has been an uptick in enrollment within the automotive program. Students are leaning toward the one-year certificate in automotive technology as they are eager to enter the workforce, and there is an increase in women entering the programs.
This is a positive sign that may help address the shortage in the future. By providing more educational opportunities and showing the value of the automotive trade, more young people may be attracted to this field.
Unlock Mobility with Arval Flex's Unparalleled Flexibility
Expanding the Portfolio
Arval Romania's introduction of Arval Flex marks a significant expansion of its portfolio. This new product builds upon the existing mid-term rental solution, introducing an improved version that provides enhanced functionalities and benefits. It offers a simpler and more flexible approach to fleet management, allowing companies to adapt to changing market demands with ease.The fast and efficient solutions provided by Arval Flex are tailored to meet the specific needs of businesses. With quick access to vehicle fleet rentals and budget optimization, companies can streamline their operations without the burden of a long-term commitment. Additionally, clients can contract this service without paying an upfront deposit, ensuring a seamless and cost-effective leasing experience.Flexibility at Its Core
One of the standout features of Arval Flex is its flexibility. Companies can use the service according to their specific requirements, with the option to terminate the contract without penalties if the vehicle is returned within the agreed pricing interval. This allows for greater control and adaptability, enabling businesses to adjust their fleet sizes and usage patterns as needed.The monthly fee for Arval Flex includes comprehensive services such as vehicle maintenance, roadside assistance, insurance, taxes, and seasonal tires. This all-in-one package simplifies the leasing process and provides peace of mind for clients, knowing that all necessary aspects are taken care of.Simplifying the Mid-Term Rental Concept
As stated by Răzvan Roșculeț, Commercial Director of Arval Romania, "Arval Flex represents a simplification of the mid-term rental solution concept. It is a dynamic service that aligns with the constantly changing pace of businesses. In an unpredictable business environment, Arval Flex provides companies with mobility and flexibility, enabling them to manage their fleets in a flexible way, maximizing operational efficiency without advance payments or long leasing periods."The leasing system of Arval Flex has been simplified, offering clients an optimized pricing structure with three intervals: 1 month, 6 months, and 12 months. As the rental period increases, the cost decreases, providing a favorable cost-to-value ratio for companies. For example, if a client initially chooses a short-term rental and later decides to extend the contract, they can do so without incurring additional costs. Conversely, if a company needs a car for a shorter period than initially contracted, they can terminate the contract without penalties.Arval sales representatives are dedicated to assisting clients with all the necessary details, making the selection process as easy as possible. Whether it's short- or medium-term projects or temporary adjustments, Arval Flex proves to be the optimal solution for company mobility, ensuring a steady flow of operations.Applicable to All Industries
Arval Flex is not limited to a specific industry. It is aimed at all companies, providing teams involved in pilot projects or expansion with the flexibility to meet their short- and medium-term mobility requirements. Whether transitioning from cars to commercial vehicles or from internal combustion engines to electric ones, Arval Flex allows companies to adapt their fleets according to their business development.Integrating Services and Offering Choices
At the same time, Arval Flex integrates all services and costs into a single package, providing convenience and transparency for clients. Additionally, it offers the possibility of complementing vehicle rentals with car-sharing technology through Arval Car Sharing. This innovative addition allows companies to further optimize their mobility solutions and adapt to the evolving needs of their employees and operations.Arval, as a key player in full-service vehicle leasing and sustainable mobility solutions, is committed to providing clients with the best possible experience. With over 1.75 million vehicles managed and a global presence in 29 countries, Arval continues to lead the way in the industry.Arval is a founding member of the Element-Arval Global Alliance and has been awarded the 2024 EcoVadis Gold Medal, highlighting its commitment to sustainability and corporate social responsibility.Unlock the Potential of the Automotive Service Market
Introduction to the Automotive Service Market
The automotive service market is a vast and diverse industry that encompasses various service types, providers, and applications. It plays a vital role in ensuring the smooth operation and maintenance of vehicles. From routine maintenance services to specialized repairs for electric vehicles, this market serves the needs of both passenger and commercial vehicles.The Business Research Company's report on the automotive service market offers a comprehensive overview of the global market size, growth rate, regional shares, and competitor analysis. It provides detailed segments based on service type, provider, and application, enabling readers to gain a deep understanding of the market dynamics.
With a forecast period of 2024-2033 and a base year of 2023, the report projects a significant growth in the market size. It is expected to reach $898.48 billion in 2028, with a compound annual growth rate (CAGR) of 5.5%. This growth is driven by several factors, including the rising adoption of electric vehicles and the need for specialized automotive services.
Growth Drivers of the Automotive Service Market
The increasing adoption of electric vehicles is a key driver of the automotive service market. As more consumers opt for electric vehicles due to environmental concerns and technological advancements, the demand for specialized maintenance services such as diagnostics, battery health checks, and software updates is growing.In March 2023, the International Energy Agency reported that 14% of all new cars sold in 2022 were electric, up from 9% in 2021. This significant growth in electric vehicle sales is expected to continue, driving the demand for automotive services tailored to electric vehicles.
Moreover, governmental policies and regulations aimed at reducing emissions and promoting sustainable transportation are also contributing to the growth of the electric vehicle market and, consequently, the automotive service market. These policies are encouraging manufacturers and service providers to invest in electric vehicle-related technologies and services.
Key Developments in the Automotive Service Industry
One of the notable developments in the automotive service industry is the acquisition of Corcoran's Mobile Services by Cox Automotive. In August 2023, Cox Automotive Inc. acquired Corcoran's Mobile Services (CMS) for an undisclosed amount. This acquisition allows Cox to expand its service offerings and enhance its mobile vehicle maintenance and repair capabilities.Corcoran's Mobile Services provides a range of services including tire repair, budgeting, body replacement, and mobile on-site preventive maintenance. By integrating CMS into its operations, Cox aims to provide customers with convenient, on-demand automotive services directly at their location.
This acquisition is part of the broader trend of companies in the automotive service industry seeking to enhance their service offerings and improve customer satisfaction. It also highlights the importance of mobile and on-demand services in meeting the evolving needs of customers.
Regional Landscape of the Automotive Service Market
North America was the largest region in the automotive service market in 2023. However, Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.Each region has its own unique characteristics and market dynamics. For example, Asia-Pacific is witnessing rapid growth due to the increasing number of vehicle sales and the growing middle-class population. In contrast, Western Europe and North America have mature markets with a high level of competition.
The countries covered in the report, such as Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, and Spain, also play a significant role in the global automotive service market. These countries have different market sizes, growth rates, and customer preferences, which need to be considered by market players.