Rising operational costs are once again the biggest challenge set to face vehicle repairers in 2026, according to The Motor Ombudsman’s latest annual survey of independent garages and franchise dealer workshops.
A convergence of skills is set to happen, with several issues combining to create hurdles for businesses this year.
The Motor Ombudsman study, which provides a yearly ‘gauge of business sentiment’, has revealed that rising operational costs, taxes and bills are set to pose the biggest obstacle for 92% of vehicle repairers during 2026. This is a two percentage point (pp) increase compared to the figure for the same study conducted ahead of 2025.
Together with the recent rise in National Insurance employer contributions, vehicle repairers are set to be impacted by the arrival of additional expense this year, according to the report. These include higher minimum wages, a revaluation of business rates, and greater standing charges for energy use.
The research also showed that 69% believe fewer customers will be able to afford routine maintenance, while 68% feel that drivers will put off vital work on their cars in the coming months in a bid to save money. With households too grappling as energy costs increase, cuts are being made elsewhere, including the most fundamental aspects of road safety.
This potential drop in footfall may call for businesses to look at diversifying income streams to future-proof revenue in 2026 and drive further efficiencies in the way that they work, such as through using Artificial Intelligence (AI).
Similarly, making investments in new technology, for example, in relation to the maintenance of ADAS and electric vehicles (EVs), could also serve as an important point of differentiation from competitors.
Changing attitudes to servicing
In addition to these struggles, 68% of respondents to The Motor Ombudsman’s survey stated that they will face rising parts prices this year to fix vehicles.
Although the outlook is positive, in that inflation is set to ease throughout 2026 according to forecasts, 55% nevertheless stated that not passing on higher costs to consumers when handing over a bill, posed an added obstacle for their business, when it comes to both retaining existing loyal customers and attracting new ones.
As the pool of available qualified and experienced vehicle technicians for hire continues to make headlines, with thousands of vacancies yet to be filled, the persisting shortage of such a vital resource in the automotive sector is reflected in the results of The Motor Ombudsman poll.
This is namely that 45% of the garages and workshops questioned said that recruitment would remain difficult through 2026, whilst the top staff-specific challenge emerged as being able to raise salaries to account for the heightened cost of living to help retain staff – all at a time when the bottom line may be compromised.
With finances often on a knife-edge for many motorists, as spend is prioritised according to where it is needed most, 38% of the businesses polled expect to see consumers abandoning their car on site, if the cost of repairs becomes too prohibitive. This is up from 28%, the figure forecast by businesses for 2025, reinforcing the growing pressures on household budgets.
Encouragement from The Motor Ombudsman
Despite a trading environment that will bring a myriad of obstacles for repairers during 2026, there are nevertheless some encouraging takeaways from the research.
For example, 29% of respondents to The Motor Ombudsman’s poll explained that they intend to upgrade their premises to create an improved service and repair experience for customers, whilst 21% plan to invest in EV-specific learning initiatives to upskill their workforce and attend training courses and webinars to further drive-up operational standards.
“As we start the new year, it is clear from the findings of our latest poll that garages and workshops across the UK are facing an unprecedented convergence of challenges, with rising costs at the very forefront of these.,” commented Bill Fennell, Chief Ombudsman and Managing Director of The Motor Ombudsman.
“Navigating this complex landscape, and a challenging economic backdrop to match, will require businesses to be adaptable, innovate and stand out from the crowd in what is a very competitive sector. This is where The Motor Ombudsman and its Codes of Practice play a key role in championing the pursuit of excellence and the unrelenting high standards of work and service delivered to motorists by repairers in our ever-expanding accredited network across the country.”
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