Auto Repair Shops NAICS 811111

Jul 30, 2025 - Employment Flat, Wages Up for Auto Technicians

• 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.

• Prices for automotive repair services steadily increased throughout 2024 to end the year up 6% - per the US Bureau of Labor Statistics - and so far in 2025 prices have risen 2.2% by May and could go even higher with the Trump administration’s 25% tariff on all imported cars and auto parts. Taking effect in April 2025, steep tariffs on auto parts - including engines, powertrain parts, and electrical components - will increase prices for auto repair and maintenance, according to experts at automotive resource company Edmunds. The problem could be exacerbated if car insurance rates - already historically high - go up even further. Insurance rates are often tied to a vehicle’s repair expenses and replacement cost. If repair costs go up, so will insurance rates to compensate for increased policy payouts.
• 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.