Rising supply chain costs may close one in ten aftermarket businesses

A survey of businesses in the motor trade has yielded some alarming results.

Of 303 businesses polled, 31% said they have already had to make redundancies due to rising costs with a further 35% considering making staff cuts ‘within six months’.  10% of respondents indicated that they may be forced to permanently close their businesses if the outlook doesn’t improve. Similarly, two thirds of motor trade professionals plan to reduce working hours within their business, leading to further unemployment.

Poll results make grim reading

Conducted by Censuswide on behalf of Gallagher Insurance’s ChoiceQuote brand, the survey was conducted in the summer, but the results have only just been published.  The pessimistic picture shows that 89% have either already increased prices, or expect to do so imminently, while 82% said that their business is facing ‘serious’ or ‘very serious’ issues linked to inflation. 77% of those surveyed don’t expect things to improve over the next six months.

READ: Rise in operating costs now biggest concern for garages

Derek Henry, Managing Director of ChoiceQuote commented: “It’s definitely a worrying outlook. In recent months, rising new and used car prices, as well as fuel prices have meant that many businesses and traders have had to rethink their strategy or make some incredibly tough decisions on their future.”

77% indicate inflation has ‘serious’ implications for their businesses

Despite the negativity of the respondents, all sections of the motor trade other than new car sales have enjoyed a buoyant September and October, spurred in part by the knock-on concequence of the MOT ‘spike’ created by 2020s MOT extension.

 

Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Latest Factor & Accessory

View all Factor & Accessory articles

GSF launches brake blitz with new Brembo and Drivetec parts

New components dramatically increase motor factor’s brake offering

Read More

LKQ Euro Car Parts announces operations overhaul, creating new roles

This, the brand claims, is designed to bring it “even closer” to its customers while increasing order fulfilment speed

Read More

Behind the scenes at GSF Car Parts’s new “title challenging” national distribution hub

500,000sq ft Wolverhampton base services 139 branches with stock “sold by 6pm one day back on the shelves by 8am the next”

Read More

GSF Car Parts partners with Cleevely EV

The partnership will see both parties collaborate on range development and product sourcing

Read More

Aftermarket leaders call for government to support independent garages in Autumn Budget

New policy document emphasises need for help with the transition to EVs and more advanced vehicles

Read More

Go to comments

Your email address will not be published. Required fields are marked *