How’s Business? A Reality Check for 2025 and Beyond

by Jerry McNee, AASP/NJ Collision Chairman

Let’s rewind. COVID hit, and for many, business came to a screeching halt. The parking lots were empty, and the phones barely rang. At the same time, we faced skyrocketing costs – parts, paint, materials – everything climbed, but the volume didn’t.

Then came 2023, a banner year for many. Work rolled through the doors, and shops were operating at full throttle. It felt like recovery was finally here.

But 2024 arrived with a subtle warning. Business plateaued. Still decent, but not the same energy or pace. And now – 2025 – many are reporting a new low: business is barely trickling in.

Why the Slowdown? What’s Really Going On?

Across the state and the country, I’ve spoken to countless shop owners. A select few are staying busy, but most? Quiet. Is it the election? Tariff concerns? The volatile stock market?

Maybe it’s a combination. But here’s what matters: Did you prepare for this downturn – or as we’re now seeing – these rainy months?

Survival versus Sustainability: What’s Your Plan?

Many shop owners say they have a “rainy day plan,” but few truly live it. Most spend when times are good…and scramble when times are bad.

Advertising in our business doesn’t work like a Coca-Cola commercial. People don’t see a banner and drive in for collision repair. It’s about branding, trust and recognition – built over years, not weeks. If your plan was to start advertising when things got slow, it’s likely too late.

Did you rely entirely on your DRP relationships? I’m hearing stories daily – shops are calling insurance managers, desperate for scraps. That’s a tough position to be in, especially if you’re a “late bloomer” without a foothold in your local market.

Ongoing Investment, Not One-Time Fixes

A smart business plan means budgeting for ongoing marketing, community involvement and facility improvements – not when you’re desperate, but consistently. Sponsoring local teams, staying visible in your community, being top-of-mind – that’s what builds sustainability.

So, I ask:

Do you have a real marketing plan, or were you banking on word of mouth and insurance programs forever?

The Slippery Slope: Compromise or Commitment?

When work dries up, many shops start fixing anything that rolls in. Even total losses. That’s a dangerous road. Somewhere on your website or wall, you probably promised to deliver “the highest level of auto body repair.” Are you keeping that promise?

Cutting corners now may cost you your reputation later.

Reinvesting in Your Future

Instead of just waiting for the storm to pass, ask yourself:

•  Have you used this downtime to train your staff?

•  Have you updated your shop or equipment?

•  Have you educated yourself on the changing rules of the game?

Knowledge is power. Were you at the NORTHEAST® Automotive Services Show in March? Did you attend any AASP/NJ meetings? Did you attend our recent education class with attorney and former insurance appraiser, manager Thomas Cherichello? That session broke down the Right to Appraisal (RTA) and gave a real-world look into how insurers are tightening their grip – delaying, denying and defending every step of the way. Do you understand how to have an intelligent conversation with your client to their right?

Why? Because they can.

They play smoke and mirrors, creating false narratives for customers to justify cutting payments. And as business slows for shops, guess what? Record profits for insurance companies. Add to that rising premiums and minimal payouts, and you’ve got a system that’s rigged – and they know it.

Are You Protecting Your Clients and Your Reputation?

Take a good look around your shop. Are you busy or just busy surviving? Are you partnering with insurers who care more about poor KPIs than people safety? Are you educating customers and advocating for their rights?

This is where the rubber meets the road.

Final Word: Planning Is Not Optional

How you manage your business in these slow months will define your future. A real business plan isn’t reactive – it’s proactive. It includes marketing, education, facility improvements, community outreach and most importantly – a deep commitment to doing things the right way, every time.

So I’ll ask again:

What have YOU done to prepare for these times?

What will you do NOW to ensure you’re still here tomorrow? 

Want more? Check out the June 2025 issue of New Jersey Automotive!