Auto Repair Shops

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.

Oct 26, 2026 - Auto Repair Shops Pay More to Stay Competitive

• Auto repair shops pay steep prices to keep up with the changing industry, as costly equipment, software subscriptions, and frequent upgrades take a bigger bite out of budgets. According to AAA, independent shops are finding it harder to afford the tools and resources needed to service a wide range of vehicle makes and models. A calibration machine can cost $28,000, plus another $12,000 for its computer. Recurring software fees and constant upgrades add to the financial burden, particularly for smaller shops with tighter budgets. Although industry agreements generally give independent shops access to automakers' repair information and tools, that access often comes with a hefty price tag. Shops are passing some of those expenses along to customers, with auto repair prices jumping about 60% between January 2019 and August 2026, nearly double the overall inflation rate of 32%, according to Federal Reserve data.
• The auto repair industry is looking to women to help address a persistent shortage of skilled technicians. Women account for less than 2% of automotive service technicians and mechanics, according to government data, leaving a largely untapped pool of potential workers as repair shops struggle to fill positions. The Bureau of Labor Statistics projects approximately 66,200 job openings annually through 2035, largely as experienced technicians retire or leave the profession. Training programs and industry organizations are working to attract more women through apprenticeships, hands-on instruction, and outreach designed to challenge longstanding perceptions of automotive repair as a male-dominated trade. The effort comes as modern vehicles demand greater technical expertise, creating opportunities for workers interested in electronics, diagnostics, and advanced vehicle systems.
• A global shortage of synthetic motor oil is raising costs for US auto repair shops and making some products harder to secure. Group III base oil, a key ingredient in full-synthetic lubricants used by modern vehicles, reached a record $12.45 per gallon in September, nearly four times its February price, according to Argus Media data cited by the Financial Times. The shortage stems from the Iran war's disruption of Middle East production and shipping. Independent shops face greater exposure because larger service chains often have stronger supply agreements. Ducker Carlisle says US oil-change prices rose 6.2% during the year through July, nearly twice the overall inflation rate. The Independent Lubricant Manufacturers Association warns that restoring shipping alone won't solve the problem because damaged production capacity and depleted inventories continue to constrain supply.
• The US trade fight with Canada could raise costs and create new sourcing headaches for auto repair shops, which depend on a parts supply chain that routinely crosses borders. Proposed 50% tariffs on Canadian auto parts and steel could make some replacement components more expensive, with distributors and manufacturers likely to pass at least part of those costs downstream. The bigger headache may be the unpredictability. Tariffs have been announced, delayed, revised, and threatened again, making it harder for suppliers to set prices and repair shops to know what parts will cost from one month to the next. Higher new vehicle prices could provide a counterweight by encouraging drivers to keep older cars longer, supporting demand for maintenance and mechanical repairs. But those aging vehicles also need more parts, and shops could find themselves busier while dealing with higher component costs, uneven availability, and customers already sensitive to repair bills.

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 399,400 workers and generate $80.2 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 about 13 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.