Surveys show Garages & Bodyshops reacting responsibly to Covid-19 restrictions, but huge concern for the future

April 09, 2020
Surveys show Garages & Bodyshops reacting responsibly to Covid-19 restrictions, but huge concern for the future Many garage owners were seriously concerned about the huge drop in turnover and were under no illusions about any quick fix, once restrictions were lifted
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Garages and bodyshops across Ireland have reacted in a measured and responsible way to the Covid-19 crisis, but are very concerned about the huge drop in turnover it has brought about and the implications for the future. These were the key findings of two surveys by Autobiz Magazine of garages and bodyshops, aimed at providing a snapshot of how the independent automotive aftermarket is coping in these difficult times.


There was an excellent response to the survey and the key findings on the garages side were:
- 27% of garages are completely closed, while 58% are offering emergency coverage only. 8% are working with restricted hours, while less than 5% are operating normal hours. Some garage owners appear to be working behind closed doors on maintenance and long term projects.

- Of those that are offering some form of service, all were taking precautions in line with government social distancing guidelines, with many going even further. 70% said they allowed no customers on the premises and 43% were offering contactless pick-up and delivery. Many of those working had adopted policies of disinfecting touch points on vehicles and wearing gloves and masks.

- One of the major concerns for 80% of respondent garages, is their turnover has fallen to between 0 and 25% of its pre-crisis level. 11% of respondents were between 25 and 50% turnover, with only 6% between 50 and 75% turnover levels.

- Regarding major concerns about the crisis, 65% were concerned about the possibility of virus transmission, with 51% very concerned about reduced business volume. 43% had concerns over the availability of parts. However, almost three quarters, (72.50%) said they had major reservations about the long term impact of Covid-19 on their business.

- With regard to the staffing position of garages, 54% said all staff were laid off, with a further 27% having reduced numbers. 7% had restricted hours and less than 4% had retained normal staffing levels.

Commenting on the effect the crisis was having on the industry, many garage owners were seriously concerned about the huge drop in turnover and were under no illusions about any quick fix once restrictions were lifted. While some were more optimistic that repair work would return after the crisis, especially with new car sales unlikely to pick-up, most were also aware of the need to make cost savings. Owners especially called for insurers to adjust turnover based business premiums to reflect the serious reduction in volume.

Many garages expressed concern about the level of government support on offer for wage subsidy or were unclear on how to claim. Cash flow was also a major issue, especially for garages doing lots of fleet work.

A common theme with many owners was the need to continue to engage with customers via email, or social media.

The main results from the bodyshop survey were:
- 39% were fully closed, with 17% offering emergency services only and a further 17% working to restricted hours. Only 13% were operating as normal, while many bodyshops also took the opportunity for maintenance and project work behind closed doors.

- Of the bodyshops operating, 87% were not allowing any customers on site and 37% were offering contactless pick-up and delivery.

- With regard to bodyshop business levels, 77% of respondents said their turnover post crisis had fallen to between 0 and 25% of it pre-crisis level. Only 9% said they had maintained a turnover level above 75% of pre-crisis levels.

- Regarding industry and operational concerns; 86% were concerned about the possibility of virus transmission, with 63% very concerned about reduced business volume. Parts availability was an issue to 68% of bodyshops, while 55% had long term impact reservations.

- On staff, 38% of bodyshops had all staff laid off, with a further 38% having reduced numbers. Only 9% had maintained normal staff levels.
Comments from bodyshop owners expressed concern about how long it will take for work volume to pick up, even once restrictions are lifted and also the need to re-evaluated operating cost moving forward.

This brief survey shows while the industry is acting very responsibly to combat the virus spread, the restriction are having an unprecedented impact on business activity and there are major concerns about the long term effects this will have on the aftermarket.
Surveys show Garages & Bodyshops reacting responsibly to Covid-19 restrictions, but huge concern for the future Results of the Autobiz survey of garages
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