The cost of living crisis is an unwanted reality that the entire population is facing, and the motor trade industry is no exception in the East Midlands. 27% of motor trade employers in the East Midlands have already let staff go, with a further 43% considering making cuts to their staff before the end of the year.
In Nottingham, 57% of motor trade businesses have or will experience redundancies before the end of the year. Showing a bleak picture for motor trade professionals in the region. There are many factors which could be impacting this, both directly in the form of supply costs increasing to indirectly through the cost of living's impact on the population. A recent RAC report stated that young people are increasingly putting off car checks and repays due to their own squeezed finances.
(Graphic displays UK wide data)
In order to establish the facts and learn about the severity of inflation-based challenges affecting the nation, a specialist motor trade insurance provider, ChoiceQuote, commissioned an independent survey of 303 motor trade professionals in the UK. The picture it paints is a pessimistic one.
A huge 63% of the professionals surveyed in the East Midlands said that their business is facing serious or very serious issues linked to inflation.
(Graphic displays UK wide data)
How is this affecting the industry's business decisions? Over a third expect their company to struggle (40%), and a sixth (17%) expect trading to remain stagnant. One in six may even close!
27% of motor trade employers have already let staff go as a consequence of rising costs, with 43% planning to lay workers off before the end of this year. Similarly, 67% of motor trade professionals in the East Midlands are expected to have reduced working hours within their business before the start of 2023.
A massive 43% of East Midland motor trade businesses have already increased customer prices this year, and 47% will be looking to increase prices before the year is out. Meaning that 90% will have increased their prices within the year.
Decision makers are making the tough decision as to whether they persevere through these difficult times or switch to a different kind of work due to the strain that the inflation crisis has had on their professional and personal life. Almost 2 in 3 (60%) motor trade professionals feel more stressed due to the impact of inflation on their personal finances (63% in Nottingham alone).
Derek Henry, Managing Director of ChoiceQuote comments: "It's definitely a worrying outlook. In recent months, rising new and used cars, as well as fuel prices have meant that many businesses and traders have had to rethink their strategy or make some incredibly tough decisions on their future."
For more information, visit https://https://www.choicequote.co.uk/the-motor-trade-industry-inflation-impact-report/