Auto Repair Shops NAICS 811111

Apr 24, 2026 - Overstocked Auto Parts Inventories Reflect External Industry Chaos

• Parts inventories are swelling in the auto repair shop industry, but it’s less about weak demand and more about shops adjusting to a new, less predictable environment. After years of parts shortages, many repair businesses and their suppliers began stocking more aggressively to avoid delays, only to see demand cool as higher interest rates slowed driving and new vehicle purchases, and post-pandemic repair surges leveled off. At the same time, the uneven rollout of electric vehicles has complicated ordering, with shops still heavily reliant on traditional parts even as future demand shifts. As supply chains improved, backlogged parts orders from tariffs also arrived in waves, leaving shelves fuller than expected. The broader backdrop remains strong - the global aftermarket is projected to exceed $500 billion in 2026, according to Motor Intelligence.
• Auto repair prices in the US climbed 7.3% year over year in February, per the US Bureau of Labor Statistics’s Producer Price Index (PPI), amid a mix of higher input costs and increasing vehicle complexity. A major driver is the increased cost of parts and operations, fueled by elevated energy prices from the Iran war and ongoing tariff-related supply chain pressures that continue to push up wholesale costs. At the same time, the industry faces a shortage of skilled technicians, leading to higher wages in a labor-intensive sector and contributing to inflated repair costs. To protect profit margins repair shops are passing through these higher costs by marking up parts and service fees. On top of that, modern vehicles - especially those with advanced electronics and EV components - are more complex and expensive to fix, a longer-term upward trend that is unlikely to ease off anytime soon.

• The REPAIR Act is bipartisan federal legislation with broad public support (roughly 85-86% across both Trump and Harris voters) that would require automakers to give consumers and independent repair shops full access to vehicles' onboard diagnostic data and trouble codes. Independent shops argue this access is increasingly essential, as even routine repairs now involve computer systems requiring expensive scanners and software. Automakers and dealers oppose the bill, claiming diagnostic information is already adequately available through existing agreements, while critics counter that dealers gain an unfair advantage by receiving predictive data first and steering customers to their own service bays. The bill is gaining momentum and is expected to reach a full House Energy and Commerce Committee markup as early as late March. The legislation is part of a broader right-to-repair movement that has already produced laws in Massachusetts, California, New York, and Colorado covering electronics and agricultural equipment.
• Genuine Parts Company, the Atlanta‑based parent of the NAPA auto parts network, said it will split into two independent, publicly traded companies to give its automotive and industrial parts businesses more focus and tailored strategies. For repair shops and auto parts distributors, the split signals potential for more responsive service tailored specifically to automotive aftermarket needs. One entity, Global Automotive, will house the NAPA aftermarket parts operations that support more than 20,000 NAPA Auto Care repair centers and over 10,000 global locations, aimed at sharpening customer alignment and investment in supply‑chain and technology initiatives. The other, Global Industrial, will center on industrial distribution under the Motion brand. The separation is expected to be completed in Q1 2027 with dedicated management teams and capital structures for each business and allowing more strategic investments aligned with their distinct markets.