Sodhi: Investing in Your Technicians: The Key to Growth for Auto Repair Shops in 2026 and Beyond

The auto repair industry is running full throttle, but too many shops are burning out before they reach the next mile marker. Demand for repairs is steady. Car count is climbing. Vehicles on the road are older and need more work. Yet one challenge keeps shops from cashing in on the opportunity sitting right in front of them: hiring and retaining great technicians.
 

Operators know that this is one of the top issues holding back growth for auto repair businesses. You can spend six figures on marketing, upgrade your bays with the latest equipment, and fine-tune your sales process but if you can’t keep skilled techs in your shop, your growth engine will likely stall. Winning shops aren’t just recruiting good talent by deploying creative labor acquisition strategies , they’re also building a culture where employees truly feel valued, and respected.

The REAL Price Tag of Losing a Strong Technician

Every time a top technician leaves, you’re paying more than you think. This isn’t just about replacing a body in the bay. It’s about lost momentum, a decline in morale, and the opportunity cost of losing revenue due to the inability to serve repeat and new customers. 
 

Let’s break it down. Recruiting a new technician can run you $5,000 to $10,000 when you add up job postings, recruiters, and management’s time. Onboarding stretches that number higher because a new hire won’t be producing at full speed for months. In the meantime, you’re either running understaffed or piling more work on your remaining crew, both of which cost you money.

Studies show replacing a skilled employee costs 30 to 50% of their annual salary. That means losing a technician making $100,000 a year can set you back $35,000 to $50,000. That’s just hard dollars. Add in the opportunity cost of delayed repairs, customer churn, and damage to your reputation, and the total climbs even higher – as much as $75,000 to $100,000!

Think about it. If you lose two techs in the same year, you’re bleeding $100,000 to $200,000 or more. That’s the price of a marketing campaign that could have grown your revenues or car count by 20 to 30%.

The Technician Shortage Isn’t Easing Up

If you’re waiting for the labor market to “fix itself,” you’re living in the utopian world which is unlikely to come to fruition in the near term.

Detroit Free Press recently shared:

• The auto industry is projected to need 400,000+ service technicians by 2028.
• Low pay/benefits, poor culture, limited career advancement, and lack of work/life balance are among the top contributors to the current industry turnover.

The Bureau of Labor Statistics says the industry is showing mild signs of improvement, but 4% growth isn’t going to change the game in the industry.

As such, shop owners and operators need to change the way they currently operate their business! Those who invest in their employees for the longer term are likely to be winners in the industry.

What Winning Shops are Doing Right

The top shops aren’t immune to labor shortages. They face the same hiring challenges as everyone else. The difference is in how they treat their people.

Growing auto repair shop owners don’t just hand out paychecks they invest heavily in their employees. They host family-inclusive events, celebrate technicians publicly on social media, and make sure everyone feels part of the bigger mission. Check their Facebook pages and you’ll see team outings, recognition posts, and photos of employees smiling with their families. That builds pride. It tells the world that this is a place where people matter.
 

Other winning operators are making strategic moves with benefits and perks. Health insurance is the baseline. Tool allowances, 401k contributions, education stipends, gym memberships, and five-day work weeks are now table stakes if you want to keep talent. One shop even introduced “family Fridays,” closing early once a month so technicians could spend more time at home. Guess what happened? Morale skyrocketed. Productivity followed.

And don’t underestimate career growth. Today’s techs (especially Gen Z) aren’t content clocking in and out without a future. They want to know where this job can take them. The strongest operations are setting up mentorships, apprenticeship programs, and leadership training pipelines. They’re showing entry-level techs how they can advance from lube rack to shop foreman to regional manager.

When you build those pathways, you’re creating loyalty.

Why Culture Drives Revenue?

Too many owners think culture is “fluff.” Let me tell you … culture results in real dollars.
When technicians feel respected, they stay longer. When they stay longer, they get faster, sharper, and more confident with your systems. That means higher productivity per bay. Customers see the same familiar faces at your shop, which builds trust and repeat business. Stable teams drive consistent revenue.
 

On the flip side, high turnover wrecks customer perception. Imagine a customer who comes in three times in six months and sees three different service writers and two different technicians. That doesn’t inspire confidence. Customers start asking, “Why can’t this shop keep people?” And some of them take their vehicles elsewhere.

A strong culture is about building a workplace where people want to come back regularly. That’s what grows the bottom line.

What Should Shop Operators Consider Changing Before 2026

We’re in a new era, and shops that don’t adapt will get left behind. Here’s what the best are preparing for:

• Offer flexible schedules. Younger techs expect flexibility. Gen Z members of your team are less likely to accept a 60-hour work week with little to no work-life balance. If you don’t adapt scheduling, you’ll continue losing them to other trades.
• Invest in new technologies. AI is reshaping training. Shops using AI-powered training tools are onboarding faster and upskilling more efficiently. That’s how you turn new entrants into A-techs faster.
• Retain technicians for the best service experience. If your team is constantly changing, customers notice. Shops with stability will own customer loyalty in their markets.

The Moves You Can Make Today

Start by taking a hard look at your pay, perks, and culture. Don’t assume you’re competitive. Test it. Call around. See what other shops in your market are offering. If you’re not in the top tier, you’re losing people.

Put your best foot forward when it comes to your shop’s brand and reputation. When 71% of job-hunting candidates say they fully research a company before they apply, you want to be sure they’re seeing the best you have to offer. That means building strategy in:

Your Careers Page

• Include photos and videos of real technicians (not stock photos.)
• Showcase employee stories and what they love about your shop.

Job Descriptions That Attract

• Don’t just say what you want. Show what techs will get.
• Highlight culture, respect, flexibility, and growth opportunities.

Geo-Targeted Hiring Campaigns

• Use tools to target mobile devices that frequently visit other repair shops.
• Serve job ads to nearby techs that highlight your difference.

Talk (or survey) your team. Ask them what they need to feel supported. You’d be surprised how often it’s not about money. Sometimes it’s about flexible scheduling, better communication, or simply more recognition.

Invest in appreciation. Recognition is a growth tool. Celebrate wins publicly. Thank your team privately. Make appreciation a habit, not a holiday.

Most importantly, show your techs a future. Map out a path for growth. Support them with training, mentorship, and leadership opportunities. When they can see themselves at your shop five years from now, you’ve already won half the battle.

Closing Thoughts

Technician retention isn’t optional anymore. It’s survival. The gap between shops that thrive and shops that stall will be drawn on one line, namely, how well they take care of their people.

By 2026, the difference won’t be car count. It’ll be technician count. The winners will be the shops that build loyalty, culture, and opportunity. The ones that stop treating technicians as replaceable labor and start treating them as partners in growth.

Take care of your technicians today, and they’ll take care of your customers tomorrow. That’s how you future proof your shop. That’s how you scale. And that’s how you win in today’s saturated and hyper competitive environment.