After two years of sharp declines in market worth, Canada’s automotive service trade is on observe for a robust rebound as Canadians return to the roads, a examine by J.D. Energy Canada predicts.
The 2022 Canada Buyer Service Index — Lengthy-Time period Research, which tracks the service wants of post-warranty four- to-12-year-old automobiles, forecasts a market worth of $10.9 billion for 2022.
In distinction, the trade’s worth plummeted to $6.6 billion in 2021, after registering $9.2 billion in 2020 and $10 billion in 2019.
The examine says driving is returning to pre-pandemic ranges and pent-up demand for repairs is driving the rise.
“Along with driving extra, some homeowners are catching up on repairs that had been placed on maintain due to the pandemic, and others are hanging on to their automobiles longer on account of stock shortages and the excessive costs of used automobiles,” stated J.D. Ney, automotive observe lead at J.D. Energy Canada.
The examine additionally foretells a decline in buyer satisfaction because the trade — like many sectors — struggles to recruit and retain skilled, educated workers.
“Whereas this has not affected general satisfaction within the quick time period, we do see some main indicators on this yr’s examine, Ney stated, pointing to clients’ responses on questions corresponding to whether or not the automobile was mounted proper the primary time or whether or not they might organize service on the times they desired.
“Clearly, the automotive trade just isn’t immune to those bigger macro-economic points.”