Auto Repair Shops NAICS 811111

Aug 14, 2025 - Americans Driving Current Vehicles Longer

• Americans are driving their current cars and trucks longer, which might be bad news for automakers and dealerships, but is a potential boon for the aftermarket and repair industries. According to S&P Global, the last two years have seen a steady increase in vehicle age, with Americans keeping their cars for 12.8 years on average while pickup trucks last 14 years. Reasons for longer auto life include saving money in the face of higher new car prices, as well as engineering advances that can keep a well-maintained car on the road longer. Scrappage rates - the percentage of vehicles removed from operation - have held steady despite new vehicle registrations topping 16 million in 2024. Both statistics indicate an aging American fleet on the roads. Maintenance demands are expected to soar in the coming years if the trend holds and car prices continue to rise.
• Employment as an automotive technician is leveling off with a 1.4% growth rate year over year in May 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 $30.02 in May 2025, an 8.2% year over year bump.

• Automobile repair costs have spiked 28% since 2021, according to the US Bureau of Labor Statistics, which the industry attributes to increasingly expensive replacement parts (some of which are subject to tariffs), a dearth of trained technicians, and the complexity of today’s computerized cars. Repairing high tech safety features like anti-crash warning systems have become increasingly expensive due to computerized components. The cost of fixing those systems can sometimes exceed the value of the car itself. Many industry insiders wonder how long manufacturers will support older software systems and parts, rather than giving vehicles a fixed-lifespan, for instance 10 years or 150,000 miles. With cars depreciating an average of about $4,600 a year (per the American Automobile Association), and insurance rates rising 12% from a year ago, maintenance costs will contribute to consumers driving a car longer or forgoing an automobile altogether.
• The auto repair industry is increasingly looking to Original Equipment Manufacturer (OEM) certification programs as a way to both simplify their businesses and ensure steady repair work without the hassle of insurance claims. OEM certifications allow an independent auto repair shop to develop a relationship with local dealerships to work on a specific brand of car for that dealership. With the average car dealership servicing about 100 autos a day, independent shops can tap into that business to ease the workload on a dealership and develop a new, reliable customer base. Automakers are increasingly incentivizing OEM certifications, such as an app released by GM that includes certified repair shops for customers seeking repairs. In addition, some electric vehicles and foreign manufacturers limit replacement parts to only certified shops, further increasing the appeal of OEM certifications to independent repair shops.