Aftermarket December/January 2023

8 AFTERMARKET DECEMBER/JANUARY 2023 BIG ISSUE www.aftermarketonline.net W hen we asked leaders across the industry how they saw 2023 playing out for the sector, rising costs for businesses, the future shape of the MOT, and the ongoing skills shortage were among the key issues identified as likely to be major concerns, along with access to data and a number of other emerging threats. IGA Head of Member Services Frank Harvey observed: “Combating the rising operating costs that have become an ever-increasing burden on businesses, and look set to be so well into the new year, will be a major challenge. The situation in Eastern Europe has impacted our sector far more than many of us imagined it might. As well as the human tragedy, the economic impact is being felt globally, and the automotive sector is no exception. The continued rumblings around MOT frequency seem to ebb and flow, but the safety risks associated with any proposed extension to MOT frequency is well- documented. Any savings for consumers would, without doubt, be countered by increased repair costs longer term.” One returning feature is set to be discussion around Block Exemption. Frank explained: “As we all know, 2023 is scheduled to see the end of the current Motor Vehicle Block Exemption Regulation (MV-BER), and there is some reassurance for consumers and independent operators alike, in that the UK Competitions and Markets Authority has plans afoot for its replacement in the UK with a Motor Vehicle Block Exemption Order (MV-BEO). The MV-BEO, being recommended by the CMA to the Secretary of State for Business Energy and Industrial Strategy (BEIS), is looking very much like the current MVBER, but seeks to extend the scope to include access for independents to access in-vehicle data. It will also strengthen the guidance for Original Equipment Manufacturers and OEM- approved repair facilities to make it clear in their end-user literature that the use of an independent to service and maintain a vehicle, using the correct components, cannot invalidate a vehicle’s warranty, which is a key factor in maintaining consumer choice and confidence.” Frank added: “There is potential disruption in the franchised world with much talk of OEMs implementing an agency model, giving them potentially greater control over vehicle pricing. While this is likely to have a significant impact on the franchised dealer networks, it has the potential to create opportunities for independents to provide a solution for consumers, in any ensuing turmoil.” Big choices For IMI CEO Steve Nash, the focus will be on skills, and helping businesses survive through the tough times: “Right now the skills gap is widening and it’s putting our sector at serious risk, especially when considering the huge shift, we need to make to adapt to new technologies. But I am particularly fearful that employers, especially in the independent sector, Above: Businesses face a range of challenges as we go into 2023 HOPES AND FEARS FOR FOR 2023 We ask some of those in the know across the industry what they think the major challenges and opportunities are likely to be in 2023