Auto Repair Shop Growth in the Midst of a Recession

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May 24, 2022

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Read time: 3 min

Businesses are buckling down and tightening their checkbooks in an effort to control expenses to avoid or reduce the effects of a potential recession.

But in the auto repair industry, there are unique opportunities that come with uncertainty in the market – and that’s more business opportunities.

As people across the country reduce their spending, they are more likely to repair vehicles than to replace them, offering auto repair shops the opportunity to actually increase business. With the right strategies, you may find that it’s entirely possible for your shop to not only survive an economic recession – but thrive and grow.

What Growth During a Recession Looks Like

The concept of growth in a recession can look different for individual businesses. Some shop owners might consider maintaining consistent business to be a success.

This is a conservative, but fully acceptable approach – keeping consistent business can keep your shop open when many others might close.

Other shop owners, however, might be asking themselves, “How can I increase my bottom line during a recession?”

This perspective may sound like a pipe dream, but it’s highly realistic if you know the best strategies to implement for your shop

Expanding business when facing economic and unexpected challenges might seem impossible; however, the COVID-19 pandemic proved that great success in the auto repair industry can be achieved in uncertain times.

Throughout the pandemic, people chose to repair and maintain their existing vehicles, rather than purchase new ones. This actually increased the need for repairs, and people were saying yes to maintenance they might have turned down before, simply because they realized the necessity of keeping their cars in good shape.

As an added bonus, shops began to add a no-touch element, providing a great opportunity to enhance the customer experience.

While the pandemic was an uncertain time for everyone, it actually brought great advantages for auto repair as it allowed the shops that adapted to create a customer experience that customers continue to enjoy today.

In preparing for the economic uncertainty in the coming year, the lessons learned through the pandemic have become highly valuable, and they can be narrowed down to two keys to success: understanding your customers and creating a consistent process.

Understanding Your Customer

No matter what state the economy is in, the driving force behind all business comes down to the customer – the people who keep you in business.

Therefore, as you prepare for a potential economic challenge, you must pay particular attention to your customers’ needs – and any changes – to properly adapt your business to meet those needs.

Pay attention to what your customers appreciate about your shop or the extra services that make them come back to you for service rather than someone else. Think about why a customer agrees to the work you do.

Customers don’t buy brakes because they want to, and they don’t get excited about a new water pump or alternator.

However, they do understand that purchasing these car parts can get them a safe, reliable vehicle – an end goal that you can support.

As the shop owner, this means meeting the customer on their terms and showing them you understand their needs and wants.

A key factor that applies to this is establishing trust. Customers want to understand the repairs they are agreeing to.

You can offer them a greater understanding with tools like digital vehicle inspections (DVIs), photos and videos of the vehicle and text updates with clear communication of the repair process.

When you prove that your business is one customers can trust to complete the repairs safely and effectively at a fair price, they are more likely to agree to the repairs, and then return for more business.

Establishing a consistent process

In addition to understanding your customer, you must also offer a consistent experience, so they know they will receive the same great service and repairs every time they walk into your shop.

Consistency in your operations can make the difference between surviving and thriving during a recession.

One of the best ways shops can establish and maintain a consistent process is through the use of the right tools – particularly a cloud-based shop management system.

This type of software gives you the opportunity to track your shop’s data.

This allows you to remain aware of finances and business trends and make adjustments as needed, as well as automate processes, such as scheduling or maintaining a parts matrix.

This increases the efficiency of your shop, so even without adding new bays or staff, you can take on more work because you’re managing each repair order effectively.

On top of that, you can improve your customer communications with the ability to communicate via text to share images from DVIs and get their work orders approved, all without requiring another in-person visit.

A consistent process maintained through an effective shop management system makes it easier on everyone: you – for better data tracking and management of your shop behind the scenes – and your customers – for a more efficient, transparent customer experience.

How to Achieve Growth in a Challenging Economy

Overall, growth in a recession is an attainable goal if you are in tune with both your shop and your customers.

As you gear up for the year ahead, make sure you have a clear understanding of your customers and their needs, as well as how you can meet them.

Additionally, take the time to standardize your processes to keep them consistent. Utilize the right tools to help automate what you can, increase efficiency, and track data to monitor your shop’s progress and adapt as needed.

With these adjustments, you will put your shop in a position better prepared for growth and success, no matter how the economy is performing.

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

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By streamlining your auto repair shop workflow, you can help your shop create a memorable customer experience that will keep them coming back next time they have a problem.

From the moment customers walk in the door to when they pick up their vehicle, your shop’s service advisors play a crucial role in creating a smooth, enjoyable experience.

Shop management software makes it easy to establish a standardized intake process so that shops can provide the same level of care to their customers every single time.

Service advisors can build repair orders in seconds, apply the right digital vehicle inspection templates with just a few clicks, and quickly text or email the results to the customer for approval.

This frees up their time to focus on the customer directly, address their concerns, and create a stress-free experience. If things go well the first time, and customers feel like they can trust your shop's recommendations, work they'll more than likely come back for future repairs.

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. 

We’re proud to share that the Tekmetric Mobile App has been named a winner of the 2025 MOTOR Top 20 Award, an honor that recognizes the 20 most innovative and impactful tools and technologies shaping the automotive industry.

For decades, the MOTOR Top 20 Awards have been a benchmark for excellence, celebrating advancements that help technicians work more efficiently and shop owners operate more profitably. To be included on this list is a powerful acknowledgment of our team’s commitment to solving real challenges for repair shops

The Tekmetric Mobile App was designed to make shop management easier and more effective. By streamlining workflows, enhancing communication, and providing shop owners with the real-time insights, the app equips teams to deliver a better customer experience while running a more profitable business..

Tek-Tip: Learn more about the Tekmetric Mobile App. Now available in the Apple and Google App stores.

This recognition wouldn’t be possible without the thousands of shop owners, service advisors, and technicians who share their feedback with us every day. Your trust pushes us to keep improving, and this award reflects both your partnership and our team’s dedication to moving the industry forward.

As we look ahead, we are more motivated than ever to build solutions that give repair shops the horsepower to grow, the efficiency to scale, and the tools to deliver service with confidence. 

To learn more about the MOTOR Awards and view the 2025 Top 20 Awards, visit https://www.motor.com/2025/09/motor-announces-2025-top-20-awards-winners/

About Tekmetric

Tekmetric, the leading auto repair technology company, improves auto repair shops through the relentless pursuit of innovation. Tekmetric’s all-in-one cloud-based auto repair platform, including shop management, payments, marketing, technology integrations, and real-time data, empowers auto repair shops nationwide. With Tekmetric, shop owners can create transparency, enhance productivity, increase profitability, and deliver a superior customer experience for vehicle owners.

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