Reviving Auto Workshops: Aging Fleets, Supply Chain Interruption, and Staffing Struggles

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August brings its own rhythm to mechanical workshops, a year where the aging vehicle fleet stands out more every day. The pause in production during the pandemic, followed by ongoing price pressures, leaves many drivers unable to replace their cars. As a result, more vehicles accumulate faults, and the demand for repairs climbs. The holiday surge in driving adds to the workload, while finding skilled staff remains a growing challenge.

The roots of the situation go deeper. A shortage of microchips and other components, triggered by supply-chain disruptions in the pandemic, slowed vehicle production and sales. There are signs of recovery, with the province reporting 26,865 vehicle sales between January and July, up 28 percent from the year before. Yet those numbers still sit about 30 percent below pre-health-crisis levels, leaving a long road ahead.

Beyond production, higher prices for new cars—driven by rising energy costs and materials—discourage buyers. Many drivers choose to keep their existing vehicles or look to the used market, which has seen a 2.4 percent sales uptick so far this year.

Raúl Morales, Communications Director of the automotive dealers association Faconauto, notes that fleets from rental car firms are injecting younger cars into the market, yet this hasn’t fully mitigated the fleet aging trend. Four in ten used cars sold are still over 15 years old, illustrating the stubborn aging cycle.

The workshop scene is visible in photos and daily practice, with mechanics checking engines with diagnostic computers as part of routine maintenance.

Thus, the combination of these factors has pushed workshop activity to high levels, approaching capacity in the province. Guillermo Moreno, president of the Alicante (Atayapa) State Automobile Shops and Relatives Entrepreneurs Association, describes the situation like a housing market analogy: prices have risen, loans are pricier, and people cling to familiar cars, hoping for better times ahead. Repairs are expanding across systems—from mechanical and electrical to bodywork and paint—as cars age.

Customer behavior has shifted as well. Moreno explains that some people used to buy a new car outright when facing an expensive repair, but that pattern is not as common today.

Producers and shop owners remain cautious, recognizing the broader economic uncertainties. They acknowledge that the current moment is dynamic—changes could come quickly as banks consider new car financing options and consumer incentives. Yet workshops are stretched thin, especially during the holiday season when mechanical demand spikes. Alejandro Rico, director of a well-known Alicante workshop and Citroën dealer, notes that July and August have historically doubled business, driven by vacation preparations and travelers who may encounter breakdowns abroad.

Car workshops only bill a third of what they did before the pandemic

There is an additional positive twist this year due to industry specifics. While activity remains high in coastal tourist hubs, workshops inland still see steady demand from drivers preparing for trips. Jose Mora, manager of Talleres Viaducto in Alcoy, observes that most tasks come from travelers seeking reliable trips rather than urgent, unexpected repairs.

Lack of staff

The staffing bottleneck compounds the pressure. Estimates indicate that about a thousand mechanics would be needed to meet provincial demand. Guillermo Moreno points to a gap in readiness for the latest automotive technologies, especially electric vehicles, noting that hundreds of techs must be trained and shops must invest in new machinery.

Coastal workshops face stiffer competition for talent, with wages not always enticing enough to retain workers who move between roles. Conversely, inland locations show younger entrants entering internships and long-serving technicians who have decades of hands-on experience. The sector faces a serious challenge, with no easy fix on the horizon.

Efforts to ease the strain include training programs supported by the Alicante State Metal Entrepreneurs Federation and collaborations with local Vocational Training (FP) initiatives. The turnover of the automotive spare parts sector mirrors repair activity, with parts manufacturers up 12 percent and distributors up 15 percent in the first half of the year, signaling continued momentum though with some deceleration ahead. Industry associations underscore generally positive trajectories while acknowledging inflation and varying company performance. The broader outlook remains cautiously optimistic, with the pace likely moderating in the coming months as markets adjust.

These observations come from industry leaders who highlight the evolving landscape: ongoing demand for service due to aging fleets, the push to adopt new technologies, and the deliberate pace of market recovery as economies normalize post-pandemic. The overall tone across sectors is one of resilience, tempered by the realities of wage pressures, financing costs, and the need for updated skills to service modern vehicles.

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