Auto Repair Shops NAICS 811111

May 29, 2025 - OEM Certifications on the Rise for Repair Shops

• 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.
• Sales of electric vehicles (EVs) in the US are boosting demand for mobile repair services where technicians come to the cars. Kelly Blue Book reports that automakers sold 300,000 EVs in Q1 2025, an 11.4% jump year over year. EVs now account for 7.5% of all new vehicles sold in the US. With the change in the vehicle mix on the road comes change with maintenance, and mobile EV repair services provide auto repair shops with a growing consumer base while avoiding overhead costs associated with maintaining a physical repair shop location. With lower costs at the shop level, repairs should be cheaper for the consumer as well. Mobile EV repair services are also more environmentally friendly since it cuts down on back and forth trips to a physical garage, a perk that appeals to the already climate-conscious consumer who bought an EV in the first place.

• Employment as an automotive technician grew 5% in 2023 over pre-pandemic levels, according to TechForce’s latest Supply & Demand Report, with new students increasingly entering a field in the midst of a labor shortage. 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 TechForce estimates will need to have one million technicians in the next five years to keep up with demand (the number sits at 794,000 per TechForce). The amount of technical skills required to repair modern cars is also helping to boost wages. The average hourly salary was $28.93 in January 2025, according to the US Bureau of Labor, a 5.4% year over year bump.
• Prices for automotive repair services steadily increased throughout 2024 to end the year up 6% - per the US Bureau of Labor Statistics - and could go even higher with the Trump administration slapping a 25% tariff on all imported cars and auto parts. Scheduled to take effect on April 2, 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.