Auto repair shops thrive during chip shortage

Key points:

  • According to a statistic report, global auto sales are expected to fall to less than 70 million units in 2021.
  • The shortage of chips has increased the value of used cars, leading to an increase in vehicle repairs as car owners invest in their auto assets.
  • Even if production were to increase or the shortage were to be addressed, it will take at least one “cycle” to normalize, which always benefits auto repair shops.


The chip shortage is a supply chain challenge that continues to rock the auto industry with no clear end in sight. Car dealers across the country are struggling to fill their lots due to lack of inventory. This, in turn, caused the value of Used vehicles at boom. For Joe hyde, Director of Automotive Technology at Christian Brothers Automotive, a vehicle repair company, this increase in value made their services even more important. MarketScale spoke with Hyde about the impact of a flourishing market for vehicle repair shops and how the used car market will continue to shape the trajectory of their industry.

Brief thoughts:

How does this affect us on the repair side? Well-used vehicles, of course, are more likely to go to an independent repair center for repair rather than returning to a selling dealership, since generally there is no warranty unless they purchase a vehicle. aftermarket warranty, which in these cases and the aftermarket warranty can be repaired anywhere the consumer decides.

And so, what we are seeing is that we are seeing an increase in vehicle repairs at all of our sites. And I think from a market point of view, because people can’t choose the vehicle they want, they choose to take a little better care of the vehicle they currently own. They do more maintenance, they stick to it longer. And that’s how our industry actually benefits from a significant increase in repairability. Throughout this shortage, we have heard only the negative effects for those in the auto industry.

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Sylvia F. Hernandez

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