5 Challenges Facing Australian Mechanical Workshops

01 Dec 2021 Helpful Tips

The last 2 years have been challenging for many Australian business. The Australian Auto Repair industry hasn’t been left unscathed with many challenges still facing many Workshops.

In business, there are always going to be challenges, but what will determine your success is the way that you plan and minimise the effects that those challenges have on your Workshop.

Here are 5 Challenges Facing Australian Mechanical Workshops in 2021:

1. Rising Part Costs:

It doesn’t take a genius to realise if you can’t keep costs down you will quickly go out of business. The need to minimise costs is imperative for sustained success in volatile economic times like this. A recent report released showed mechanical part supply prices have already escalated 20% on pre-covid prices and could go as far as 50% in the coming years.

Australian Motorists are becoming far more price conscious, so it is so important that you do everything in your power to minimise costs. To stay on top of your part supply costs it is highly recommended that you shop around, build relationships with different suppliers and don’t be afraid to leave a loyal supplier who won’t give you the best deal.

Related Article: 5 Tips to Get Better Part Prices.

2. Rise of Electric Vehicles

Years ago, the thought of Electric Vehicles becoming the primary vehicle of choice seemed far-fetched. Electric vehicle sales are surging in Australia with many motorists deciding to shun the popular Diesel and Petrol vehicles for cheaper and environmentally friendly electric alternatives. A challenge that faces many Australian Workshops is transitioning to catering for Electric Vehicles.

To be successful, Australian Workshops need to quickly transition to accepting electric vehicles. Start learning the tools of the trade, research different online courses, find out what tools are needed and find a way to cater for electric vehicles.

Related Article: Is Your Workshop Ready For Electric Vehicles? How Your Workshop Can Prepare.

3. Changing Safety Standards

Safety is the number 1 priority in every workplace. The Australian Auto Repair Industry continues to investigate current safety standards and implement changes to minimise risk in the workshop.

The Auto Repair industry is a high-risk industry; it is imperative that you stay on top of the latest updates in Workshop Safety Standards. Reach out to the industry safety regulators, subscribe to their news updates, and implement the necessary changes when required.

4. Changing Technology

Very similar to point 3, point 4 cannot be missed. Technology continues to change every day. To stay ahead, Australian Workshops need to stay up to date with the latest developments in Workshop Technology.

We get it, making a change to a process that you have been using for years. But if your Workshop fails to adapt to change you could lose money and customers.

Research what new technology is available in the market, reach out to other mechanics and see what they are using, learn how new technologies can benefit your workshop. Some new tools available in the Australian Auto Repair Industry can improve your efficiency, grow customer satisfaction and maximise profit.

Related Article: Why web-based technology is so important for mechanical workshops.

5. Growing Competition

In any industry you are going to have competitors, but what will determine your success is the way you understand the completion and implement solutions that make customers want to choose you.

Sure, it may sound cliché, but many Workshops fail to understand what the completion is doing, and it only hurts their business. Research your competition, find out what they are offering and find ways to match or better their prices.

Understanding your competition will make or break your Workshop!

Related Article: Tips to Get More Bookings For Your Workshop.

Final Word,

There are always going to be challenges in business, but what will determine your success is the way you plan and minimise the effects they have on your business. With the Australian Auto Repair Industry continuing to change it is so important that you stay ahead of the latest developments, research your competition and do everything in your power to minimise costs for both your Workshop and your customer.

To read more blogs like this, visit our news section here.

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