Mobile mechanic business’s shares plummet 5% after sales drop

Jul 7, 2021 Services

Mobile mechanics are still a hot commodity, but a new report suggests that they may be hitting a brick wall.

The research firm IHS Global Insight predicts that mobile mechanic sales will drop by 5% next year, according to a report on Wednesday by Reuters.

In addition, the report says that sales of mobile mechanic services, such as a fleet of rental trucks, will drop to an estimated $1.8 billion next year from an estimated 3.1 billion last year.

IHS Global’s analysts say that the industry is likely to experience a further drop in sales of the vehicles in the near term, with dealers reporting an expected drop of between 10% and 20% in the next two years.

Mobile mechanics may also face a drop in their earning potential because of a lack of incentives for sales, the analysts say.

“The market is clearly at a low point in terms of potential earnings for mobile mechanics,” IHS’ Mark S. Bohnert said in a statement.

This is likely driven by the lack of incentive for new drivers, he added.

Sales of new vehicles have declined more than 20% since 2009, when sales peaked.

More from the AP: A growing number of American auto dealerships are abandoning the industry in favor of outsourcing to China and other Asian countries, according.

Some dealerships have also switched from using their own technology to that of China’s, which allows them to keep up with demand.

Analysts say that this could have negative effects on the industry as the U.S. auto industry has historically been a strong buyer of parts.

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