Hiring in the automotive aftermarket was challenging in 2025, due in part to slow growth (1% according to SEMA), as well as widespread changing employer requirements and hiring processes.
SEMA projects 3-4% growth in 2026, which is more in line with (non-COVID) historic growth trends. A number of factors will affect this projected growth, some of which are difficult to predict. Production costs have continued to increase, and SEMA predicts moderate 2.2% increases this year due to tariffs and other factors. Supply chain experts I’ve spoken with are still trying to get a handle on the tariff situation. Universally, they’ve told me that a) it’s a moving target; b) they spend their days (and nights) talking with suppliers and production staff to find workaround tactics; and c) the uncertainty has adversely affected hiring plans.
Fuel costs are projected to decline substantially (-12%) in 2026, but repair (+7.3%), insurance (+14%) and service and parts (+5% and 2.3% respectively) costs are expected to increase, erasing any gains in fuel savings. Vehicle complexity is a major factor driving increased insurance and repair costs, according to SEMA. Anecdotally, continued M&A, bankruptcy and consolidation in the industry are also contributing to automotive parts price increases. A senior executive at a major parts retailer suggested that we’ll witness significant increases on certain parts over the next couple of years due to this activity in the manufacturing sector.
Hiring processes in all industries, and particularly within the automotive aftermarket are undergoing significant evolution due in part to emerging technologies like AI, but also resulting from changing employer dynamics. Factors like those affecting pricing have also impacted hiring. Moreover, AI has removed a human component from the hiring process, which was declining anyway. Candidates frequently share that their biggest pet peeves include very poor communication through every step of the hiring process, as well as having to jump through hoops like uploading their resume, then entering all the information manually after the fact. They also don’t appreciate automated responses, and they particularly dislike unhosted video interviews in which they respond on video or over the phone to pre-recorded questions.
Employer onsite requirements are at odds with candidate preferences. More than ever, candidates are unwilling or unable to relocate, and companies are requiring onsite attendance more than they have for nearly a decade. My clients who have virtual teams suggest that remote work does not adversely affect performance, and in some cases will improve it.
Onsite requirements combined with employers’ propensity to wait for the “perfect” candidate means that great people continue to be in the market, and companies miss out on their contributions. Add the costs to hire and opportunity costs associated with open jobs, and companies are leaving money on the table. The 10/10 candidate is a unicorn wearing blue suede shoes that doesn’t exist. I recommend that my clients make the offer when they find the 8/10 candidate. Improving communication and collaboration within the hiring process will help to ensure that employers don’t miss out on the best employees.
Sources: SEMA Future Trends report
Written by a 100% human
From our VP, Automotive Aftermarket Recruiting, Mark Osmundson