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 Car Parts to open national distribution hub

Wolverhampton-based centre makes the firm “a formidable national player in the automotive parts industry”

Read More

LKQ Euro Car Parts signs exclusivity deal with RAC

The four-year deal will see LKQ exclusively supply the rapidly expanding RAC Mobile Mechanics service

Read More

Juratek awarded Premier Data Supplier status by TecDoc

The quality standard requires a company to meet 13 targets and have a minimum 99% degree of accuracy

Read More

Autoglym acquires GnG Sales as it expands into Australasia

The wholesale supplier of car care products has marketed and supplied the Autoglym range for over two decades

Read More

Comline Group to move to new headquarters

Move hailed as “inspiring new chapter” for UK-based parts firm

Read More

Go to comments

Your email address will not be published.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