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Coronavirus Impact On Vehicle Repair Chain

Apr 21, 2020

Businesses across the UK and the world unfortunately continue to be impacted by the Coronavirus pandemic. Manufacturing, supply chains and logistics have all been impacted.

Can the vehicle repair industry expect to see a coronavirus impact on the vehicle repair chain?

How is the vehicle repair sector currently coping?

At the moment the coronavirus impact on the vehicle repair chain seems minimal. But this could be because a pause button has effectively been pressed.

People are not using their vehicles as much during the lockdown. There are less cars on the road, which should mean fewer accidents and requirements for repairs.

Have MOTs been delayed because of coronavirus?

MOT expiry dates have been extended for those expiring from the 30th March 2020 reducing pressure on garages and MOT centres.

Of course, the financial impact on garages and related businesses themselves will be notable at this time.

What could the coronavirus impact on the vehicle repair chain be?

Many car repair companies rely on China for the production of parts. China was the first country to report the Coronavirus and have parts of its population confined to a strict lockdown. Resulting in factory closures or limitations on output, putting pressure on the production of vehicle parts.

With China now seemingly coming out of the Coronavirus lockdown, production may start to get back to higher levels. Yet there may still be issues relating to exportation out of China. Reduced flights, constraints within the shipping industry may all be set to compound the issue of obtaining parts for vehicle repairs.

We may also see a rush once people are able to get back to some semblance of normality in the UK.

Repairs which may have been delayed or not considered vital a few weeks ago may be scheduled in as people look to start using their vehicles again. Likewise, all of the delayed MOT’s will be needed to be completed at some point in time.

And with many vehicles idle for prolonged periods or only being used for very short, infrequent trips there may be more vehicles requiring attention and repair when they are finally back on the road. Or the potential for more accidents caused by poorly maintained vehicles.

Many repairers work to a ‘just in time’ supply chain, carrying around 1-2 days’ worth of stock. It is likely that this stock is being used at the moment for the repair work that is being carried out. So, stocks will need to be replenished, which could uncover shortages caused by the export and import limitations associated with Coronavirus lockdown across the world.

Taken together, this could mean we see a coronavirus impact on the vehicle repair chain that is a little delayed compared to the immediate effect seen on other businesses.

Will this impact the insurance industry?

Again, it is too soon to say exactly what the impact will be. But if repair times are extended then this could mean vehicles are off the road for longer following an accident. In turn this could impact the insurance industry as hire vehicles may need to be supplied for longer periods for example.

Prices of parts may also go up in the short term as the industry tries to deal with a potential shortage and supply and demand issues.

At Anthony Jones we appreciate that we are in unprecedented times. That is why we are here to help where we can. We are still working, in accordance with government guidelines. If you do have any questions about your insurance then do not hesitate to get in touch with us in the usual ways.

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