Auto Repair Shops NAICS 811111
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Industry Summary
The 79,429 automobile repair shops in the US fix cars with mechanical problems or restore a vehicle after a collision. The automobile repair industry is highly fragmented. Most out-of-warranty vehicles are repaired at independent shops. A vast majority of independent service shops are family-owned.
Declining Collision Sector
Once a highly-profitable segment, the collision and body repair sector is in what some industry experts have termed “irrevocable decline.
Competition from Dealers
Car dealerships are increasing their efforts to service and repair vehicles of all types.
Recent Developments
Nov 20, 2025 - Auto Associations in Favor of Catalytic Converter Theft Bill
- The Automotive Service Association is urging auto repair shops to support the Preventing Auto Recycling Theft Act (PART) as catalytic converter thefts in the US continue to rise. A catalytic converter is a key part of a vehicle’s exhaust system that reduces harmful emissions by converting carbon monoxide, nitrogen oxides, and hydrocarbons into less harmful gases. These components are targeted by thieves because they contain valuable metals like platinum, palladium, and rhodium, which can be sold quickly for significant profit. The thefts have placed a heavy burden on repair shops, forcing them to manage costly replacements, increased labor, insurance claims, and frustrated vehicle owners. The PART Act proposes VIN stamping on new converters, grants for marking used converters, stricter record-keeping for buyers, and federal penalties for theft and resale, aiming to protect repair shops and reduce losses in the auto repair industry.
- US auto repair and body shops are feeling the ripple effects of major auto supply chain disruptions in late 2025, according to the Wall Street Journal. Shortages of aluminum, semiconductors, and other key parts (exacerbated by a US worldwide trade war) are slowing vehicle production, leaving many repair shops struggling to source replacement parts. With longer lead times, repair costs are rising and shops face delays in servicing customer vehicles. Some estimates suggest parts availability has dropped sharply compared with pre-pandemic levels, causing wait times for repairs to stretch by several weeks or more. The situation mirrors the early-2020s chip shortage but is broader, affecting multiple vehicle systems and brands. For repair shops, this means increased operational challenges, higher costs, and potential lost revenue as customers wait for parts. Experts warn that unless supply chains stabilize and tariffs ease, auto repair businesses may continue to face pressure from both constrained inventories and rising expenses.
- As of August 2025, vehicle maintenance costs are 8.5% higher than last year, with the average repair now costing $838, according to Kelley Blue Book. A 2025 FinanceBuzz survey found 58% of drivers couldn’t afford an emergency repair costing $1,000 or more, highlighting a growing affordability gap. Even minor accidents can be costly; a lightly damaged bumper can now run $1,600 or more when factoring in sensors like blind-spot and backup systems, which often require programming at the dealership. Rising labor and technology costs are driving these increases, making once-simple fixes increasingly expensive. Experts recommend cost-saving strategies such as buying OEM parts, taking advantage of coupons or discounts, and performing some routine maintenance at home, like oil or transmission fluid changes. Delaying repairs can escalate costs further, so addressing issues early is crucial to avoid even higher expenses down the road.
- Employment as an automotive technician is leveling off with a 0.9% growth rate year over year in June 2025, according to the US Bureau of Labor Statistics. As automobiles become more electrified and controlled by on-board computer systems, the profession has broadened its appeal as a high-tech field with a skillset that can later be transferred into other mechanical applications like diesel vehicles and wind turbines. It is good news for an industry that is estimated to need one million technicians in the next five years to keep up with demand. The amount of technical skills required to repair modern cars is also helping to boost wages. The average hourly salary was $30.06 in June 2025, an 8.8% year-over-year bump.
Industry Revenue
Auto Repair Shops
Industry Structure
Industry size & Structure
The average auto repair shop has about 5 employees and generates $901,420 in annual revenue.
- The automobile repair industry includes about 79,430 firms that employ 385,540 workers and generate $71.6 billion in annual sales.
- The auto repair industry is separate from dealerships that provide repair services as well as the aftermarket industry, which manufactures and supplies components for vehicle repair.
- The automobile repair industry is highly fragmented. A vast majority of independent service shops are family-owned.
- The average car is 12.8 years old. A shift toward older vehicles tends to benefit the auto repair industry, as it indicates customers are more likely to take them to a mechanic for service.
- Many independent mechanics are closed on the weekends, hindering competition with car dealerships that operate on Saturdays. Mechanics work an average of 40 hours a week.
- The largest auto repair companies in the US are Meineke/Maaco, Midas, Monro, and Precision Tune Auto Care.
Industry Forecast
Industry Forecast
Auto Repair Shops Industry Growth
Source: Vertical IQ and Inforum
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