The Biggest Auto Repair Industry Trends To Take Advantage of in 2024

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Read time: 3 min

As 2023 winds down, it's a great time to reflect on the strides made across the independent auto repair industry.

Throughout the year, we’ve been collecting data, talking to shops that rely on Tekmetric every day, and gaining valuable insight into how your shop can prepare for the best year possible in 2024.

That’s why we released our latest Industry Index Report earlier this year, to give shops and industry resources to not only compare their performance against other shops but also some concrete tips and tricks they can implement at their shop. 

This comprehensive analysis not only assesses the industry's vitality but also seamlessly integrates unique Tekmetric’s partner shop data, presenting a goldmine of opportunities for optimizing shop management.

The result is a compelling narrative that provides a bird's-eye view of auto repair in 2023 and delves into Tekmetric-specific data, to offer shops like yours the actionable insights you need for success in 2024.

Here’s how shops can take advantage of these trends in 2024.

1. Ride the Wave of Industry Growth with the Right Tools For The Job

Despite the looming threat of a recession, the auto repair industry has expanded as customers choose to repair their existing vehicles rather than purchasing new.

This presents an opportunity for shop owners to ride the wave of industry growth and expand their businesses – with the right tools for the job.

In 2022, the auto repair industry defied economic uncertainties, witnessing a remarkable revenue surge of 9.7%, and the momentum continues with an anticipated additional growth of 8.1% in 2023.

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Tekmetric shops in particular have been at the forefront of this upward trajectory, reporting a notable 6.35% increase in cars occupying their bays. Furthermore, a staggering 80% of open repair orders within Tekmetric shops were not only completed but also promptly paid in full.

As a testament to the efficacy of Tekmetric tools, users also experienced a robust 55.86% average profit margin, coupled with an impressive $585.91 Average Repair Order (ARO).

These trends underscore the potential for auto repair businesses to not just weather economic challenges, but to thrive and expand by leveraging insights and functionalities from a shop management system like Tekmetric.

2. Get More Value Out of The Work Your Shop Does

Maximizing efficiency through data is the key to unlocking the full value of a shop’s work.

By embracing the data and insights from a system like Tekmetric, shops can not only enhance their operational efficiency but also position themselves for sustained growth and success in a competitive market.

One notable avenue is the strategic use of unique matrices. In 2023, shops that adopted this practice with their parts matrices experienced a 35% profit margin on parts.

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This optimization not only enhances the shop’s bottom line but also underscores the potential for shops to boost their profitability through streamlined processes significantly.

Moreover, approximately 45% of shops used labor matrices to set varying labor rates, culminating in an average hourly technician rate of $27.26. This rate stands notably higher – 19% to be precise – than the national average reported in 2023.

Adopting these matrices demonstrates an intentional approach to labor management, allowing shops to tailor their pricing structures based on factors such as job type, expertise, specialization, or customer requirements. 

3. Meet Customer Demands with Modern Solutions

Modern customers have modern expectations. That's exactly where modern solutions like a cloud-based shop management system come in.

Take Advantage of Digital Inspections and Tools

We've heard it time and time again, customers may not always trust auto repair shops and might feel a little weary approving costly repair bills, no matter how necessary they might be. Of course, this not only means a declined job for your shop, but more importantly, at best an even more costly repair down the line, or at worst a potentially dangerous situation on the road.

That's why your shop needs to work to build that trust with customers. When they feel that your shop is on their side offering valuable advice and transparency regarding necessary repairs, they'll be more likely to approve those repairs.

‍One of the easiest ways to do this is to simply show the customer what's wrong. Don't just rely on industry-standard terminology, which comes out as techno-babble to customers. Instead, with modern shop software, technicians can take pictures or even videos to show exactly what's broken or what needs to be replaced.

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Text Customers and Get Paid Instantly

Shops should also consider texting their guests. We get text updates from our doctor's office or for our pizza delivery, so why shouldn't shops text their customers as well?

The convenience makes it easier for your shop, who can text directly from your SMS, while customers don't have to wait for a free minute to answer your call or authorize repairs -- that can all be done instantly, in real-time, through texts.

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Prepare For the Year Ahead

Tekmetric's 2023 Industry Index Report serves as a beacon for auto repair shops, guiding them toward growth, profitability, and enhanced customer experiences in the dynamic landscape of the industry.

In fact, it’s more than a just report – it's a guide for shop owners looking to create a business that thrives in the next year and beyond.

Download the report now and unlock a roadmap to success, powered by data, innovation, and Tekmetric's commitment to shaping the future of the auto repair industry.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

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One of the most important parts of building a thriving auto repair shop in today’s industry is knowing how to interpret your shop’s data well – and often. Understanding how to leverage and report on your data can help you transform your business overnight through informed decision-making, financial health monitoring and strategic planning. Large corporations invest in tools to provide them with business intelligence to grow their bottom line and it should be no different when it comes to running your auto repair shop.

Through data analytics and predictive reporting, organizations can gain a deeper understanding of market trends, customer behavior and emerging opportunities. Integrating these capabilities into running your business can be quite intimidating. Fortunately, Tekmetric’s shop management system provides the tools you need to run reports, monitor your shop’s performance, and make strategic decisions that promote increased efficiency and profitability. Read on to discover how you can leverage data to enhance efficiency, improve customer engagement, identify growth opportunities, and drive profitability in your shop.

1. Identify Business Objectives

Identifying a clear target of what you’re looking to achieve in your business is the most important starting point when it comes to measuring performance and success. To effectively leverage data for your business, start by clearly defining your goals. Identify what you aim to achieve, whether it's improving customer satisfaction, increasing sales or optimizing operations to save you time or even looking to expand your auto repair shop to a new location. 

Once your goals are set, establish specific Key Performance Indicators (KPIs) to measure your progress. This step is crucial to ensuring you are able to evaluate progress clearly and objectively. Once you’re able to track your performance accurately and measure success, you can now move onto formulating a data-driven strategy to reach your business objectives.

2. Analyze Data & Establish Baselines

For an auto repair shop, analyzing data begins with collecting detailed information about various aspects of the business, such as customer demographics, parts usage, Digital Vehicle Inspection (DVI) metrics, technician efficiency, as well as sales trends. This analysis helps in understanding the current performance levels, pinpointing areas for improvement, and optimizing resource allocation. For example, with Tekmetric’s real-time insights you can quickly identify repair orders by status and identify bottlenecks before they occur in your shop.

Establishing baselines involves setting standard performance metrics against which future performance can be measured. By using historical data, the shop can determine average repair order (ARO), parts margins by vendor and employee efficiency. These baselines serve as benchmarks for evaluating progress and identifying deviations that require attention.‍

3. Make Data-Driven Decisions

An auto repair shop can make data-driven decisions by leveraging data insights to inform its business strategies and decisions. Tekmetric built its reporting suite with a focus on helping shops identify key areas for growth and opportunities for innovation. For example, thorough and efficient digital vehicle inspections can strongly enhance your customer experience by building trust and transparency.

At Tekmetric, we've discovered that shops sending eight to twelve photos to customers on over 50% of their repair orders achieve a higher average repair order (ARO) compared to those that don't. By measuring DVI quality through metrics like photo quantity, you can increase your ARO while building trust and transparency with vehicle owners. Leveraging Tekmetric's reporting tools, you can identify your own trends and implement a growth strategy driven by data-backed decision making.

4. Monitor and Review Progress Regularly

To ensure ongoing success, an auto repair shop should prioritize monitoring and regular review of its operations. This entails creating regular reports to track Key Performance Indicators (KPIs) and measure the impact of data-driven decisions. By consistently monitoring performance metrics, the shop can stay proactive in addressing challenges and capitalizing on opportunities.

It's crucial for auto repair shops to remain agile in their approach. Tekmetric’s reporting enables its users to be prepared to pivot and make quick decisions based on real-time data and insights. As the automotive industry evolves and customer needs change, shops must adapt their strategies accordingly. By staying agile, the shop can swiftly respond to market shifts, customer preferences, and emerging trends, ensuring its continued relevance and competitiveness in the industry.

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One multi-shop operator switched to Tekmetric and doubled monthly revenue in two years. He shared how in a recent Tekmetric and PartsTech webinar.

Auto repair shops are under more pressure than ever. Tighter margins. A technician shortage that isn't going away. Customers who expect speed, transparency, and a frictionless experience every time they walk through your door.

Yet many shops are still running on disconnected systems, manual workarounds, and processes that haven't changed in a decade. The result? Bottlenecks that bleed time, stall revenue, and cap growth — often without the shop owner even realizing it.

This is the problem a recent ShopOwner webinar, sponsored by Tekmetric, tackled head-on. The conversation centered on one deceptively simple idea: the connected shop.

In this article, you'll learn what a connected shop workflow looks like in practice, how one multi-shop operator doubled monthly revenue after switching to Tekmetric, where the most common operational bottlenecks are hiding in your estimating process, and how features like SmartJobs, parts and labor matrices, and good/better/best estimates can raise your average repair order (ARO) — the average dollar amount collected per repair order — without adding headcount.

What a Connected Shop Actually Means

A connected shop isn't just about having software. It's about having the right systems talking to each other — and having your team actually use them.

John Phelps, director of channel partnerships at Tekmetric, put it plainly: "Just because you have an oven, that doesn't make you a chef. You can have the technology, but if you're not leveraging it properly, what good is it doing?"

That distinction matters. Technology for its own sake is another bill. Technology deployed with intention — one that connects estimates, parts ordering, inspections, payments, and customer communication into a single workflow — is a growth engine.

Tekmetric is built to be exactly that. With 70-plus integrations, built-in digital vehicle inspections (DVIs — digital inspection forms that capture photos, videos, and findings shared directly with customers), real-time reporting, and a native mobile app for technicians and service advisors, it's designed so every step of the repair order (RO) flows into the next without friction, duplication, or lost data.

One Shop Owner Doubled Monthly Revenue After Switching to Tekmetric

Tim Lanier knows what a revenue ceiling feels like. As president and CEO of Lanier Auto Group — which today operates four rooftops in the northern Atlanta suburbs — he spent years running a single shop that simply could not break through a certain monthly revenue level.

"We were stuck," Lanier said during the webinar. "We had our ways of doing things. A lot of copy-paste out of catalogs into the shop management system."

In March 2020, he made the switch to Tekmetric.

"As soon as we made that change, it opened the door to a lot of new possibilities — some of which we just didn't anticipate." He added: "We probably doubled our sales in about two years once we made the switch."

At the time of switching, Lanier's single rooftop was generating roughly $200,000 per month. Two years later, that number had climbed to approximately $400,000 — a structural shift in what the business was capable of, not just an incremental gain.

What unlocked it? A connected workflow that brought parts ordering, DVIs, payments, accounting, marketing, and inventory into one platform. The glass ceiling, as Phelps framed it, became a paper ceiling. And Lanier's team broke right through it.

The Estimating Bottleneck Is Costing Your Shop More Than You Think

When Phelps asked Lanier to name the single biggest operational bottleneck he's had to overcome, the answer was immediate: the estimating process.

"If you don't come up with systems to streamline things, that person becomes the bottleneck in the shop," Lanier said. "Some tickets can take 30 minutes to an hour to find all the parts and pieces you need for big jobs."

His solution? Get technicians directly involved — and give them the tools to act on that involvement.

"We've empowered the technicians by giving them a computer at their bay and a dual monitor setup so they can go straight into Tekmetric, pull up PartsTech, use diagrams and photos to quickly identify the exact part they need, and put the part on the ticket," he explained.

The result: estimates arrive at the service advisor roughly 90% complete. Advisors clean up grammar, add photos, and present. That's it. No back-and-forth. No shouting across the shop floor.

This is the connected shop in practice. Tekmetric's integration with PartsTech means technicians can search multiple suppliers in one lookup, confirm part specifications, and add items to ROs without leaving the platform. What once took an hour can be compressed into minutes — with fewer errors and fewer return trips.

Pricing Consistency Drives ARO Growth

One of the most overlooked drivers of ARO growth isn't sales technique — it's consistency.

Phelps highlighted this during the webinar: if a customer calls back a week later asking for a brake quote and gets a number $50 different from what they were told before, trust breaks down. Inconsistency in how estimates are built — varying labor rates, different parts markups, or service advisors quoting from memory — costs shops money and customers.

Tekmetric addresses this directly. Parts matrices and labor matrices create a consistent pricing foundation so every estimate reflects the shop's actual margins, regardless of which advisor builds the ticket or when. SmartJobs — Tekmetric's proprietary canned job system that automatically pre-populates parts, labor, and job notes for common services — takes this further by ensuring the right components populate every time, on every RO.

"If you're not using SmartJobs, powered by PartsTech, in Tekmetric, reach out to support, get your SmartJobs set up, and you'll be taking a massive step forward,” Jake Benson, director of strategic accounts at PartsTech, said during the webinar.

How to Present Good, Better, Best Estimates Without Starting From Scratch

Economic uncertainty means customers are making tighter decisions. Giving them options isn't just good customer service — it's good business.

In Tekmetric, shops can build a good/better/best estimate structure without starting from scratch three times. Build the base estimate, duplicate it, add parts or labor for each tier, and text all three options to the customer. A built-in checkbox at the job level keeps declined or unchecked options out of close ratio reporting, so advisors aren't penalized for presenting choices.

The same system works for tires, fluid services, brake packages, or any job where tiered pricing makes sense. Shops that present options consistently report higher approval rates and stronger customer relationships — because customers feel informed rather than pressured.

Tekmetric Is Built to Scale With Your Shop

Lanier's growth from one rooftop to four over the last four years didn't happen by accident. He credits systems and processes — and the ability to replicate them — as the core of that expansion.

"Once you figure out your systems and processes, things begin to click," he said. "It all becomes a lot easier."

Tekmetric is built to scale with that ambition. Whether you're running a single shop or managing multiple rooftops, the platform gives ownership real-time visibility into performance across every location — ARO, technician efficiency, close ratio, and more — without requiring an extra step to pull the data.

The connected shop isn't a future state. For shops like Lanier Auto Group, it's already the standard. The question is whether yours is built the same way.

Watch the full on-demand webinar from Tekmetric and PartsTech — How to Simplify Shop Operations and Increase Your Average Repair Order — and hear directly from shop owners and industry experts on the strategies and tools driving real results in 2026. 

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