Adapting the Microprocessor Supply in Your Auto Repair Shop
The auto repair shop industry is ever-evolving. It’s exciting to see where new technology will take us and our customers in the coming years. Thanks to the number of microprocessors and microcontrollers now used in vehicles, shops and their techs have already adapted many times to keep pace.
Face it, no technology has so consistently and dramatically changed cars as much as the computer chip. According to Car and Driver, they’ve made cars “quicker, safer, cleaner, more efficient, and more reliable – better in every way.”
In 2000, cars had, on average, 150 semiconductors in their systems; by 2030, they are expected to have closer to 600. Today, they play a role in 51 different functions – from lane-departure warnings to battery management. On top of adding countless safety features, these changes also encouraged the DIY crowd to turn to our shops for maintenance and repairs they used to do in their driveways.
Microprocessors were introduced to automotive electronics in the mid-1970s. Next, their use blossomed in the 1980s as part of the solution to a series of problems. In 2004, only 25% of cars had airbags and fewer than half had power seats. Since then, consumer demand and new regulations have driven up the call for more safety and comfort features.
As a result, auto repair techs keep learning new systems and technology to keep up with customers’ needs. Shop-Ware’s auto repair shop management software has managed to stay current while managing the workflows related to these changes.
More Growth Coming Between Now and 2022
Two years ago, electronics ate up 40 percent of the cost of a new car, according to a Deloitte analysis. That’s an increase of 18 percent since 2000. Automotive and industrial electronics are projected to create the fastest-growing demand for semiconductors, which include microprocessors.
Semiconductor revenue growth in the automotive sector is on track to grow between 2107 and 2022 by:
- 23.6% for advanced driver-assistance systems (ADAS)
- 21% for electric and hybrid-electric vehicles
- 13.3% for autobody
- 11.2% for the instrument cluster
- 8.2% for infotainment
- 6.1% for the chassis
- 6.1% for the aftermarket
- 3.4% for the powertrain
- 2.6% for safety features
The aftermarket auto repair shop’s portion alone is estimated to be worth about $3 billion by 2022.
EVs and ADAS Keep Changing the Dynamics at Auto Repair Shops
Even more growth is coming for safety, infotainment, navigation, and fuel efficiency, the Deliotte report adds, mostly related to ADAS. At the same time, automotive suppliers try to bypass parts manufacturers by working directly with their customers. For example, Bosch has an app that helps its customers monitor car functions and connect them to the nearest Bosch repair center when it’s time for a tuneup.
The challenge for your auto repair shops can be getting the components you need. Problems arise due to high demand and supply-chain snags that tie up these and other parts. Tesla saw the current chip shortage coming and pivoted to using microcontrollers instead. They also worked with new suppliers to create new firmware on new chips.
Navigating Today’s Challenges
We also saw the challenges ahead, which is why built inventory management and parts-ordering integration into our platform. Having several parts suppliers wired into Shop-Ware allows you to shop around quickly and efficiently right from the shop floor.
For every bump or twist in the road, our team travels along with you. We’ve got you with stellar service every step of the way.
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