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.

Jul 31, 2026 - Simpler Vehicle Designs Could Make Repairs More Predictable

• Auto repair shops may soon see more consistency in the vehicles coming through their bays as automakers standardize more components across their model lineups. Volkswagen recently said it plans to cut its global model lineup by as much as 50% and reduce product variants by 75% by 2030, while Ford, Stellantis, Nissan, and others are expanding modular vehicle platforms that share engines, suspension components, electronics, and other parts across multiple models. According to Business Insider, Volkswagen has already built more than 32 million vehicles on its MQB platform alone. For independent repair shops, greater parts commonality could improve parts availability, simplify technician training, and reduce the number of unique repair procedures technicians need to master. Shops that invest in servicing these increasingly standardized platforms may also benefit from faster turnaround times and more efficient inventory management as the vehicle fleet gradually evolves.
• The automotive right-to-repair debate has gained momentum as lawmakers and industry groups push to expand independent access to vehicle data needed to repair increasingly connected vehicles. In 2026, the federal government began reviewing policies that could make it easier for consumers and independent shops to access repair information and aftermarket parts. Congress advanced legislation that would codify key elements of existing voluntary repair agreements between automakers and the indie repair industry. Meanwhile, Massachusetts remains the focal point of a legal battle over access to vehicle telematics data after a federal court upheld the state's landmark right-to-repair law. Automakers argue that limits on access are necessary to protect cybersecurity, privacy, and vehicle safety, while independent repairers contend that broader access is essential to preserve competition and consumer choice. As software, over-the-air updates, and advanced driver-assistance systems become standard, the outcome of these legal and regulatory efforts will reshape the automotive aftermarket.
• Independent auto repair shops are gaining routine maintenance business as consumers increasingly look beyond dealership service departments for lower-cost alternatives. According to market researcher Ducker Carlisle, dealership service transactions fell 13% between January 2025 and January 2026, the steepest decline in an industry where overall service transactions dropped 11%, allowing independent shops, tire retailers, and quick lube centers to capture a larger share of the market. Automotive News reports that dealerships now charge an average of $521 per service visit, nearly double the $271 average at repair chains, making independent providers an attractive option for budget-conscious drivers. Many vehicle owners, particularly younger customers, are choosing independent repair shops for routine maintenance because they offer competitive pricing and faster service. As dealerships struggle to retain customers after warranty coverage ends, independent repair businesses are well positioned to capitalize on shifting consumer preferences and expand their share of the aftermarket.
• Auto repair prices in the US climbed 7.7% year over year in April 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.

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.