The recently imposed tariffs on foreign-made auto parts are starting to trickle down to auto repair shops. Smaller shop are finding it more difficult to maintain pricing—passing the extra cost to the customer, while larger shops are able to absorb a higher percentage of costs.
Business Operations Affected by Tariffs
Overall, 39% of shops reported some impact from tariffs, with the remainder (59%) experiencing no effect. Cost increases were the most cited issue, affecting 38.0% of shops, particularly those with eight or more bays (74%). Larger shops with four to seven bays also noted cost pressures (45%), while smaller shops with one to three bays reported a lower rate (16%). Other changes impacted 1% of shops, with no significant issues like part unavailability or lower customer demand noted.
Pricing Strategies Shift Due to Tariffs
Tariffs influenced pricing for 41% of shops, with 37% raising product prices because of cost increases—most prevalent among shops with eight or more bays (70%). Larger shops with four to seven bays followed at 44%, while smaller shops with one to three bays saw 17%. A smaller 3% absorbed costs to maintain prices, and less than 1% lost customers because of price changes, with no influence reported by 59% of shops overall.
Supply Chain Challenges Emerge
Supply chain effects were reported by 26% of shops, with higher shipping costs impacting 20%—a notable 63% among shops with eight or more bays, 21% for four to seven bays, and 5.5% for one to three bays. Part shortages affected 2%, and shifts in customer purchasing behavior impacted 3%, with larger shops that have four to seven bays feeling these effects more (4% for both, respectively). The majority (73%) reported no supply chain issues, with smaller shops with one to three bays at 88%.
Regional and Size Insights
The data highlights disparities by shop size: larger shops with eight or more bays were hit hardest, with 74% facing operational costs, 70% adjusting prices, and 63% dealing with shipping costs. Smaller shops with one to three bays showed resilience, with 81% and 88% reporting no impact on operations and supply chains, respectively. These findings suggest tariffs may disproportionately challenge larger operations with greater part volumes. Alternatively, larger shops may simply be more aware of pricing impacts based on volume and reporting practices.
While tariffs have not universally disrupted independent repair shops, cost increases and pricing adjustments are significant concerns, especially for larger facilities. IMR remains committed to tracking these evolving tariff trends to provide timely insights in an ever-shifting landscape.
