The study – which surveyed over 1,200 customers and external samples across the UK – found that more than three in five (62%) UK garages view inflation as a major concern for the next five years. Meanwhile, 43% identified technological advances as a challenge.
Other top concerns included the rise of electric vehicles (35%), parts availability (29%) staff training (24%) and supply chain instability (14%).
Yet despite cost pressures topping garages’ worry list, LKQ’s study found that they value competitive prices as the fourth most important factor when choosing parts suppliers. Having a good relationship with branches was the top reason UK garages would call a supplier first (48%), followed by speed of delivery (47%), stock availability (44%), competitive prices (38%), and a good range of products and brands (27%).
Matt Robinson, B2B Director at LKQ Euro Car Parts, said: “Like many businesses across the economy, increased overheads – like rising labour and energy costs – is putting pressure on garages’ margins. But the aftermarket also faces the unique challenge of reskilling and retooling to support an electric and technologically advanced car parc.
“UK workshops aren’t alone in feeling these pressures, but it’s encouraging to see they have some respite from the environmental regulation change facing garages in the EU. This may only be temporary though, as UK policy makers watch the effectiveness of automotive regulation with the view of adopting any approaches that could make a measurable impact on decarbonisation.
“Understanding the extent to which garages are feeling these pressures is strategically important to us as we stand by their side in overcoming them. We’re making major investments to bring greater value to our parts range to help hedge against inflationary pressures, with all proceeds of our LKQ Academy also reinvested back into training provision to make modernisation accessible and achievable.”
“We provide an unmatchable 45,000 same-day deliveries to customers, that’s one every two seconds, from our portfolio of 140,000-strong portfolio of SKUs to 98% of the UK. Availability and speed of delivery are clearly important, but it’s people and relationships that make the difference. UK garages value relationships more than their EU counterparts according to our study. And that’s why we have friendly, helpful staff that play an active role in their local communities – giving back through our Community Branch Fund supporting local projects.”
