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Independents face legislative burden
Date Listed: 28/08/2009
Independents are facing a legislative burden in tough trading conditions says an RMI survey.
Independent garage operators believe that the burden of legislation and compliance is diverting their attention from their business, just as trading conditions have become tougher in the sector, according to the findings of the first Retail Motor Industry Federation (RMI) Independent Service and Repair Garage Survey.
The survey polled the members of the RMIs Independent Garage Association (IGA) to assess the sectors views on major issues including business trends, customer relations, and parts supply.
The survey found that:
- 81.5 per cent of respondents believe that the burden of legislation and compliance is diverting attention from their business.
- 53.3 per cent say that the average job cost has risen in the last six months.
- 45.6 per cent of respondents forecast a decrease in earnings before interest and tax (EBIT) profits this financial year.
While the survey indicates that businesses are operating in a tougher, more complicated businesses environment, the survey highlighted some interesting trends in the workshop:
- 62.1 per cent of those polled see a trend towards repair over preventative maintenance.
- 57.2 per cent of respondents are seeing younger cars in their workshops.
Despite the economic climate, many businesses are still thinking about future investment. When asked about future capital investment plans for the current financial year:
- 49.5 per cent of respondents say they intend to invest in equipment.
- 42.7 per cent of respondents say they intend to invest in training.
- 31 per cent said they intend to invest in tooling.
Commenting on the results, RMI Director Sue Robinson said: The independent garage sector is going through some tough times, but there are still positive signs, and many businesses are still looking towards the future. The need to invest in that future seems to be recognized, and the IGA will continue to support its members, to help them to grow their way out of the current economic situation and into success.