2026 Repair Shop Challenges

New IMR open end response data from 500 repair shops in December of 2025 shows that while parts and labor issues continue to dominate, economic uncertainty, customer behavior, and vehicle complexity are all shaping how shop owners think about their business this year.

In our survey last year, repair shops stated finding affordable parts (20.6%), Finding parts I need (17.7%) and keeping overhead costs low/running the shop were the top three issues headed into 2025.

Parts prices are the number one issue

The most cited challenge is again, finding affordable parts and dealing with rising prices. 46% of shops selected this as a challenge, more than any other issue.

22.8% of shops say finding the parts they need or dealing with parts shortages continues to impact operations. Even when parts are available, 4.8% say getting parts on time is still a problem that affects scheduling and workflow.

Economic pressure is hitting overhead and daily management

Beyond parts, shops are feeling broader economic strain. 35.8% of shops say keeping overhead costs low and managing the day-to-day impact of the economy is a challenge. Rising labor costs, utilities, rent, software subscriptions, and equipment investments are all contributing to tighter margins.

Customer retention and new business are harder to maintain

Nearly 28.6% of shops say bringing customers back, offering incentives, or finding new business is a challenge. As repair costs rise, customers are becoming more cautious, and shops are having to work harder to earn repeat visits and justify recommended repairs.

At the same time, 7.6% of shops say providing affordable service and repairs to customers is becoming more difficult, reinforcing the tension between rising costs and customer price sensitivity.

Technician challenges remain widespread

Labor continues to be a major constraint across the industry.

23.8% of shops report difficulty finding qualified or responsible technicians

9.6% say retaining qualified technicians is a challenge

7.0% cite providing hands-on technician training as a concern

As vehicles become more complex, shops are also struggling to keep up with the tools required to service them. 30.0% of shops say staying current with diagnostic tools and software updates is a challenge, while 6.2% say keeping up with broader industry changes and standards remains difficult.

Technology shifts and competitive pressure are growing factors

While not yet top-tier concerns, longer-term structural changes are showing up in the data.

11.0% of shops say transitioning to service EV, hybrid, or ADAS-equipped vehicles is a challenge

16.8% say competing with larger shops or dealerships is becoming more difficult

These responses suggest that while many shops are still focused on today’s operational issues, future-facing investments and competitive positioning are increasingly part of the conversation.

Other challenges add friction to daily operations

Several issues appear less frequently but still affect shop performance:

5.6% cite decreasing parts quality

6.2% identify marketing and advertising as a challenge

5.4% say they face no major challenges

0.2% selected other

What this means for 2026

Parts costs, overhead, labor availability, customer retention, and vehicle complexity are all issues shops are facing so those that can control costs, get reliable parts, invest in technicians, and clearly communicate value to customers will be better positioned to navigate the year ahead.